Decision postponed on Modification P382 preparing for a ‘no deal’ Brexit
The Balancing and Settlement Code (BSC) Panel has decided to postpone a decision on whether to implement Modification P382: Amendments to the BSC in the event of no-deal Brexit until its 10 October meeting at the latest.
Reason for deferral
Modification P382 proposes that the BSC is amended to reflect where EU regulations will not be retained in EU law in the event of a ‘no deal’ Brexit. It aimed to remove any potential confusion or ambiguity from the BSC.
However, The UK’s exit day from the European Union has been amended until 31 October 2019 at the latest. Therefore, The BSC Panel decided at its meeting on 4 April that any decision on whether to implement the changes should be deferred until its meeting on 10 October 2019.
The draft legal text for the Modification may need to be amended before October as a result of other Modifications being implemented, or changes to legislation by Government.
The Panel noted that P382 may not be required if Britain leaves the EU with a deal. The Panel believed this was the most efficient and effective way forward given the unique circumstances. The Panel also reserved the right to make a decision sooner should circumstances require.
What happens next?
We have been undertaking contingency planning to respond to all potential eventualities as a result of the Brexit negotiations, and the UK’s subsequent withdrawal from the European Union in March 2019.
ELEXON will continue to monitor and analyse Brexit announcements for relevance to the BSC as well as liaising with Ofgem, BEIS and other Code Administrators. If we assess that the Panel need to make a decision on P382 ahead of the 10 October Panel meeting, we will make any recommendations at the appropriate time.