Trade of electricity between the Republic of Ireland and Northern Ireland would continue under the current all-island market if a ‘no deal’ Brexit occurs, the latter’s Utility Regulator said.
However, the Belfast-based Utility Regulator said that while trade between the all-island single electricity market (SEM) and interconnectors with Great Britain will also continue, the trade may be less efficient as “some of the European platforms may not be used in the same way as today”.
The all-island market allows electricity to be traded the day before (day ahead) or on the day itself (intra-day), with the former currently operating as a pan-European market.
But, in the “event of a ‘no deal’ Brexit, this market will almost certainly be less efficient than today as Great Britain will no longer be part of the pan-EU market and the SEM will become an isolated market”, the Utility Regulator said.
The body said it will work with the Irish regulator – Commission for Regulation of Utilities – to minimise the loss in efficiency.
Trade with Great Britain in the intra-day market will remain unaffected, it added.
A T-4 capacity auction will also take place as planned on 28 March, with all contracts to be honoured regardless of the final Brexit outcome, Utility Regulator said.
The current deadline for the UK exiting the EU is the end of 29 March, with no deal yet agreed.