BREXIT: Impact On Northern Ireland's Electricity Supply

• Published date: 13 March 2021
• Subject Matter: Government, Public Sector, Energy and Natural Resources, Energy Law, Oil, Gas & Electricity, Constitutional & Administrative Law
• Law Firm: Cleaver Fulton Rankin
• Author: Mr Stephen Cross

Four years after the European Union (EU) referendum the UK left the EU and its Single Market on 31 December 2020. The relationship is now governed by the Trade and Co-operation Agreement (TCA) agreed between the UK Government and the EU Commission on 24 December 2020. Northern Ireland's unique relationship with the rest of the UK and the EU was settled when the Ireland/Northern Ireland Protocol was formally agreed on the 17 December 2020.

Given that the TCA and the Protocol were put in place at such a late stage, mere days before the UK's exit from the EU, the public, business and commentators had little time to evaluate what the impact of Brexit would actually be, and just over a month on from the UK's exit some of the implications are beginning to be felt, especially on the shelves of supermarkets in Northern Ireland.

The difficulties and complications experienced in the trade in goods are well publicised, but what are the implications for energy, particularly the supply of electricity to consumers in Northern Ireland?

Single Electricity Market

Whilst the rest of the UK has now left the EU's Single Market for Energy, Northern Ireland's electricity market will continue to operate as part of the Single Electricity Market along with Ireland. The Single Electricity Market recently became fully integrated with the electricity markets of the other EU Member States (as had the rest of the UK until its withdrawal from the EU) and the Northern Ireland Protocol recognises the need for the EU regulations that underpin the operation of the Single Electricity Market to continue to apply in Northern Ireland.

Connection with GB and Europe

Of course, both Northern Ireland and Ireland are connected to Britain by electricity interconnectors; the Moyle Interconnector between Scotland and Northern Ireland, and the East West Interconnector between Wales and Ireland, which enable electricity to flow between the island of Ireland and Britain. This interconnection is vital, not only to give Ireland and Northern Ireland access to surplus electricity from Britain but to allow excess electricity generated in Ireland, particularly wind energy, to find a market in Britain.

Due to the fact that Ireland presently has no connection directly to the rest of the EU market (pending the construction of the Celtic Interconnector between Ireland and France, which is expected to be commissioned in 2026), the electricity interconnection with Britain is the only means by which Ireland can...