Bruegel fellows Simone Tagliapietra and Georg Zachmann testified on May 16, 2018 before the European Parliament’s Committee on Industry, Research and Energy (ITRE) about the impact of Brexit on the European energy system. On aggregate, they argued that energy system related impact of Brexit on EU citizens and companies will be limited. With or without the UK, the EU will be able to complete its market, to achieve its climate and energy targets with feasible readjustments, and to maintain supply security.
In addition, they do not expect that it will be in the UK’s interest to seek a competitive advantage for its companies by discriminating against EU energy companies active in the UK, or by competing with the EU’s manufacturing industry through lowering energy taxes or environmental standards. Despite the negative impact of Brexit on the EU energy system is manageable, they illustrated that a vast number of very important details that will need to be resolved in a short period of time. Moreover, they outlined that special attention should be paid to the impact of Brexit on the Irish energy system.
A video of the testimony is available here.