The single electricity market between Northern Ireland and the Republic of Ireland should be a priority for Brexit negotiations, the UK government said in a position paper published today. It added that the single electricity market is “by far the best option for the electricity market in Northern Ireland”.

The government said: “Given its strategic importance to domestic and business consumers in Northern Ireland and Ireland, and the need to provide early reassurance and certainty to investors, the UK proposes that the UK and the EU should prioritise discussion of energy issues alongside the movement of people and goods.”

The position paper also noted “the continued ability to trade gas between Great Britain and the island of Ireland is also critical for security of supply and efficient market operation”, as electricity generation in Northern Ireland and Ireland is heavily reliant on supplies of natural gas, and imports from Great Britain account for nearly 100 per cent of Northern Ireland’s gas supplies and 40 per cent of supplies for Ireland.

The UK proposes that the new framework for the energy market in Northern Ireland and Ireland should:

● recognise the importance placed on cross-border cooperation in the Good Friday Agreement, which provides for cooperation between Northern Ireland and Ireland (Strand 2), and the UK and Ireland (Strand 3);
● take account of the strategic importance to Northern Ireland and Ireland of maintaining affordable, secure, and sustainable supplies of electricity and gas for businesses and domestic consumers;
● facilitate the continuation of a single electricity market covering Northern Ireland and Ireland;
● facilitate the continuation of efficient electricity and gas interconnection between the island of Ireland and Great Britain;
● seek to provide certainty as soon as possible for citizens, investors, and businesses in Northern Ireland and Ireland on energy arrangements; and
● include an appropriate interim period to ensure that any changes to current arrangements can be implemented in a timely way.

The paper said that the single electricity market was the best option for the electricity market in Northern Ireland “in the medium term at least” due to the size and isolation of the market, as the development of  new electricity trading arrangements or the construction of new power generating capacity would be “inefficient and expensive”.

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