On 27 September 2019, the Office of Gas and Electricity Markets (Ofgem) published a letter providing an update to market participants on how Brexit no-deal UK contingency arrangements would work for the Regulation on Energy Market Integrity and Transparency (REMIT).
In March 2019, Ofgem published a letter setting out the REMIT contingency arrangements in the event of a no-deal Brexit (see previous blog here). The letter covered three main areas: (i) monitoring and enforcement; (ii) registration; and (iii) data reporting. Ofgem’s latest letter summarises the no-deal REMIT contingency arrangements as set out in the March letter. It serves as a confirmation to British wholesale energy market participants that those contingency arrangements remain valid in the approach to 31 October 2019.
In terms of next steps, Ofgem states that should the UK leave the EU on 31 October 2019 without a deal, the contingency arrangements outlined in the letter will be implemented in full on that date. If a deal is implemented, a transitional period will run until 31 December 2020, unless otherwise agreed by the UK Government and the EU. During this time, Ofgem will continue to work on the assumption that current REMIT registration and data reporting channels will remain unchanged.
Ofgem has no further communications planned in advance of 31 October 2019, but should circumstances change, it will act to provide the maximum clarity possible. In the meantime, it will continue to ensure that all necessary contingency measures are in place, and that in all eventualities British wholesale energy markets function with transparency and integrity.