21Electricity risk-preparedness
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Committee’s assessment |
Politically important |
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Cleared from scrutiny; further information requested |
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Document details |
Proposal for a Regulation on risk-preparedness in the electricity sector and repealing Directive 2005/89/EC. |
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Legal base |
Article 194 TFEU, Ordinary Legislative Procedure, QMV |
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Department |
Business, Energy and Industrial Strategy |
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Document Number |
(38349), 15151/16 + ADD 1. COM(16) 862 |
Summary and Committee’s conclusions
21.1Late last year, the European Commission proposed an overhaul of the rules governing the electricity market as a response to the changing nature of the market, notably the increasing volume of renewable energy. The Commission’s package included a draft Regulation on risk-preparedness in the electricity sector, the objective of which is to help Member States prevent and manage crisis situations, particularly through co-operation with each other.
21.2Our predecessors scrutinised this draft Regulation alongside the other elements of the package and identified no specific issues. The Minister for Energy and Industry (Richard Harrington) has now written to explain that the timetable has accelerated—despite resistance from the UK—and that a General Approach will be formally adopted by the Council as soon as possible. The Presidency sought agreement on this proposal in order that it could focus on the more contentious elements of the electricity market package and linked energy proposals at the 18 December Energy Council.
21.3The Minister proposes to support the General Approach, which is broadly consistent with the UK’s existing resilience arrangements. The strengthening of obligations on the management of regional security risks could benefit the UK if future investment in interconnection takes place as planned. He adds that the UK has managed to ensure risk preparedness plans are not prescribed in detail but remain at the level of principles, thereby preserving the right of Member States to take account of national specificities in their plans.
21.4On the UK’s exit from the European Union, it would be helpful if the Government would confirm whether the provisions of the Regulation would be likely to apply to the UK before its exit from the European Union and during any transition/implementation period. We recognise that arrangements after that will depend, to a certain extent, on the outcome of the negotiations on the future relationship.
21.5Given the relatively uncontentious nature of this proposal, we are content to release it from scrutiny. We nevertheless ask that the Government updates us on further progress, including on negotiations with the European Parliament.
Full details of the documents
Proposal for a Regulation on risk-preparedness in the electricity sector and repealing Directive 2005/89/EC: (38349), 15151/16 + ADD 1, COM(16) 862.
Background
21.6The proposed Regulation sets out what Member States should do to prevent and manage crisis situations and how they should co-operate with each other to this end. It provides especially by providing common methods for assessing risks, by bringing more comparability and transparency in the preparation phase and in an electricity crisis, by ensuring that even in the crisis electricity is delivered where is it needed most. It also provides a framework for a more systematic monitoring of security in supply issues via the Electricity Coordination Group. It contributes to the Electricity Market Design package by ensuring that, even in crisis situations, priority is given to market-based measures and that markets can work as long as possible. More information on the background and content of the proposal was set out in the Committee’s Report of 25 January 2017.279
Minister’s letter of 22 November 2017
21.7The Minister notes that, at a meeting of EU Ambassadors (COREPER) on 16 November, a draft General Approach was agreed and the Estonian Presidency informed Member States that this would be put to Council as soon as possible. The Minister is therefore requesting a scrutiny waiver in order to be able to vote in favour at Council.
21.8Commenting on the accelerated timetable, the Minister says:
“We were not expecting the Presidency to progress this proposed Regulation so quickly and have tried strenuously to persuade the Presidency to adopt a slower timeline in light of the Scrutiny Reserve. However, the Presidency has the very ambitious objective of trying to achieve at the Energy Council on 18 December a General Approach on the three other components of the new Electricity Market Design package, as well as on the revised Renewable Energy Directive and the Regulation on the Governance of the Energy Union. The Presidency is therefore seeking to agree a General Approach on this uncontentious proposal on risk preparedness earlier to leave more time for discussions on the other proposals in December.”
21.9Explaining the outcome of discussions, the Minister adds:
“I am sorry to have to request a waiver with such urgency but believe that we should support the General Approach. The requirements in this proposed Regulation are broadly consistent with our existing resilience arrangements and the strengthening of obligations on the management of regional security risks could benefit the UK if future investment in interconnection takes place as planned. As interconnection increases, so will the potential for incidents in mainland Europe having an impact on the UK. The enhanced regional co-ordination efforts prescribed in the Regulation will help lessen any risks. In the negotiations on the proposal we managed to ensure that risk preparedness plans are not prescribed in detail but remain at the level of principles, thereby preserving the right of Member States to take account of national specificities in their plans.”
Previous Committee Reports
Fortieth Report HC 71–xxxvii (2016–17), chapter 6 (25 April 2017); Twenty-ninth Report HC 71–xxvii (2016–17), chapter 4 (25 January 2017).
1 December 2017