The single electricity market operated on the island of Ireland will remain in place under a Brexit withdrawal deal hammered out between the UK and the European Union.
Article 11 of the deal “ensures that a clear legal underpinning” protects the cross-border trading arrangement in the Republic and Northern Ireland.
“The approach taken provides for alignment with only those rules needed to ensure the SEM’s continued functioning of the SEM, linked to the governance of wholesale electricity markets, as well as relevant measures to ensure the same carbon price and emissions limits across the market,” said an explainer document published by London.
Elsewhere, both sides have promised a framework to facilitate “technical cooperation between electricity…networks operations” in the planning and use of grid infrastructure.
Mechanisms to “ensure security of supply and “efficient trade over interconnectors over different timeframes” have also been agreed.
Energy UK chief executive Lawrence Slade welcomed the deal that, he said, will avoid a “cliff-edge scenario which would be so damaging for the energy sector”.
“While there is clearly still much work to be done, it is a positive development to see energy included in the outline political declaration, and we recognise the hard work that has gone into ensuring energy is a key part of the future EU-UK relationship,” he said.
“It is critical we ensure the smooth functioning of markets and the continued free flow of energy and cooperation on tacking climate change, in order to benefit our environment and keep bills down for UK customers and businesses.
“We therefore welcome the progress made and will continue to work with the Government to ensure the best Brexit deal for the energy sector, our economy and the environment.”