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  • Writer's pictureJohn Harding

EU referendum - Impact of UK’s exit from EU on Energy/Utility industry


SmartGPower has examined the potential impacts of the UK's exit from the EU on the energy/utility industry. The following key points are summarized in this article:


Impact of UK’s exit from EU on Energy

1. Future Energy Interconnectors:

  • Power interconnectors with France and the Netherlands, as well as gas pipelines to Belgium and the Netherlands, will continue operating regardless of the UK's decision in the EU referendum.

  • The UK's Transmission System Operator (TSO) will maintain communication with its French counterparts under any political scenario.

  • Proposals for additional power interconnectors to France, Ireland, and Belgium may be reassessed after the EU exit.

  • Despite leaving the EU, the UK will remain a member of ENTSO-E (European Network of Transmission System Operators for Electricity), ensuring influence in the development of future technical standards.


2. Renewables Targets:

  • The 2020 renewables target of 15% remains unchanged and is binding for the UK even after exiting the EU.

  • The combined EU target of 27% renewables by 2030 is not an absolute obligation for the UK, allowing for a more flexible approach post-2020.

  • The UK can independently promote renewable technologies and energy storage without being constrained by EU deadlines.


3. Free Flow of Skilled Labour:

  • The UK is currently experiencing a skill gap in the energy sector, including operational staff, Senior Authorised Persons (SAP), design/planning engineers, and project management roles.

  • As an EU member state, the UK benefits from the free flow of skilled labour in the European Economic Area (EEA).

  • If boundary restrictions are imposed, accessing skilled labour from EEA countries may become challenging.

  • The NEWSAC (Network Emergency Coordination Centre South) agreement allows Distribution Network Operators (DNOs) to voluntarily share skilled field staff and resources during severe weather events.


In conclusion, SmartGPower emphasizes the need for a comprehensive energy policy blueprint that ensures self-reliance on major fronts. The article highlights the importance of addressing skill shortages in the energy sector and carefully planning for potential challenges arising from the UK's exit from the EU.

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