What would a no deal Brexit mean for UK’s gas industry?

With so much uncertainty still surrounding the Brexit deal, or possibly No Deal, questions are being asked about what the imminent break with the EU will mean for the UK’s gas industry.

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The UK relies on gas for its energy

According to British Gas, around 80% of homes in the UK are gas-powered, with many power stations now running exclusively on gas. Just under half of the gas we need is supplied from gas reserves in the North and Irish Seas, with the remainder being supplied from Europe via pipeline. A further 9% of gas is supplied in liquid form via tankers.

Under current legislation, as a member of the EU, the UK must abide by energy laws that apply to the EU as a whole. However, once the UK breaks free of the EU, if that ever happens, there will be necessary changes in the legislation.

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Few changes following a No Deal Brexit

Industry pundits claim that following Brexit, and even in the event of a No Deal Brexit, little should change in the world of gas supply, since PRISMA, the platform that allows traders to connect with each other, supplies both EU and non-EU countries alike.

There may be moves to improve the infrastructure surrounding gas delivery once Brexit terms have been finalised. Many homes have a damaged or broken gas meter box which could benefit from being upgraded and replaced – companies such as Meterbox.co.uk sell gas meter boxes that are robust and fit for purpose with an extended life that makes them a practical alternative to the plastic gas meter box.

As for the role of the gas industry following Brexit, the jury is still out. The UK government is urging industry leaders to keep up to date with all of the current information and guidelines, with contingency plans to cover most situations that may occur in the event of a No Deal Brexit arrangement. If No Deal goes ahead, EU energy laws will cease to apply within the UK. The government has already taken steps to ensure that the industry doesn’t fall into chaos by publishing a statutory instrument that will keep the UK’s energy systems in order following Brexit. Ofgem, the industry regulator, is ready to step in to offer help and assistance to interconnectors to aid the process.