UK dangers increased power costs, provide shortages from Brexit – lawmakers

LONDON (Reuters) – Britain’s resolution to depart the European Union may result in increased power costs and power provide shortages if the exit shouldn’t be managed correctly, a report by an upper-house parliamentary committee report stated on Monday.

Britain imports round 5-6 p.c of its electrical energy through energy hyperlinks with France, Holland and Ireland, whereas round 40 p.c of the nation’s fuel provide comes through Norwegian and European pipelines.

The report, printed by the cross-party House of Lords, stated post-Brexit, Britain’s power buying and selling outdoors of Europe’s Internal Energy Market will probably be much less environment friendly than the present preparations.

“This creates the potential for higher energy bills, and leaving the EU could risk supply shortages in the event of extreme weather or unplanned generation outages,” it stated.

The report stated the government ought to perform a full evaluation on the impression of leaving Europe’s power market and set out plans on the way it expects to handle any extreme provide shortages.

The EU operates a solidarity precept relating to fuel, which suggests within the event of a severe disaster member states are anticipated to assist one another keep provides.

Britain’s position within the association, as soon as it leaves the European Union in March 2019 is unclear.

The report additionally known as on the government to evaluation the opportunity of making a particular transition interval association for the nation’s participation the European Atomic Energy Community (Euratom), separate from the broader Brexit course of.

Experts have stated that if Britain leaves Euratom, there’s a danger of new-build tasks being delayed or placed on maintain whereas new stand-alone nuclear cooperation treaties are negotiated with nations within the EU and out of doors it.

Nuclear crops provide round 20 p.c of Britain’s electrical energy and the government hopes a brand new fleet of crops, beginning with EDF’s (EDF.PA) Hinkley Point C, will probably be constructed to assist exchange ageing coal and nuclear crops set to shut within the 2020s.

“Failure to replace (Euratom‘s) provisions by the point of withdrawal could result in the UK being unable to import nuclear materials, bringing the UK’s civil nuclear industry to a halt,” the report stated.

Reporting By Susanna Twidale; Editing by Elaine Hardcastle

Our Standards:The Thomson Reuters Trust Principles.

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