Twelfth Report Contents

Proposed Negative Statutory Instruments under the European Union (Withdrawal) Act 2018

Instruments recommended for upgrade to the affirmative procedure

Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019

Electricity and Gas (Market Integrity and Transparency) (Amendment) (EU Exit) Regulations 2019

Electricity Network Codes and Guidelines (Markets and Trading) (Amendment) (EU Exit) Regulations 2019

Electricity Network Codes and Guidelines (System Operation and Connection) (Amendment etc.) (EU Exit) Regulations 2019

Gas (Security of Supply and Network Codes) (Amendment) (EU Exit) Regulations 2019

Date laid: 17 December 2018

Sifting period ends: 16 January 2019

1.These five draft Regulations address deficiencies in retained EU law on electricity and gas markets to ensure that the UK energy market can continue to operate effectively in a potential ‘no deal’ withdrawal from the EU. The Department for Business, Energy and Industrial Strategy says that the instruments aim to minimise disruption to the UK’s energy markets and ensure legislative continuity for industry following EU exit, with a particular focus on Northern Ireland and the Single Electricity Market (SEM) in Ireland.

2.The proposed changes are complex and technical and do not appear to present significant policy or regulatory changes. It is also clear, however, that the instruments have been laid before Parliament as a package and that as such they are important: the draft Regulations are necessary to enable UK energy markets to operate effectively if there is no agreement with the EU, and they touch on issues of strategic significance, such as security of gas supplies, the trading and balancing of electricity across borders and continuity of the SEM in Ireland.

3.The Committee is of the view that while none of the instruments stand out individually, they are important as a package, and that the House may wish an opportunity to debate the instruments in the round, including in the context of the particular sensitivities in relation to the SEM in Ireland. The Committee therefore recommends an upgrade of all five draft Regulations to the affirmative procedure, on the ground that they give rise to policy issues that are likely to be of interest to the House.

Merchant Shipping (Standards of Training, Certification and Watchkeeping) (Amendment) (EU Exit) Regulations 2019

Date laid: 18 December 2018

Sifting period ends: 17 January 2019

4.Two European Directives1 (‘the Directives’) harmonise the way in which Member States implement the requirements of the International Maritime Organization Convention on Standards of Training and Watchkeeping for Seafarers (“the STCW Convention”). The Directives provide for the automatic mutual recognition of seafarer certificates issued by EEA States and establish a process for EU-wide recognition of certificates from third countries. This Proposed Negative instrument will enable the UK to continue to recognise EEA seafarer certificates that it currently recognises. The UK will also recognise the certificates from those non-EEA countries that are approved by the EU and recognised by the UK immediately before exit day. These Regulations also introduce a mechanism whereby the Secretary of State may recognise additional parties, or remove recognition, by assessing compliance with the STCW Convention. However, the Department for Transport acknowledges that, in the event of ‘no deal’, EU recognition of UK certificates “will be at the discretion of each Member State.” Given the potential impact on UK seafarers, the House may wish to have the opportunity to debate this instrument and we therefore recommend that this Proposed Negative instrument be upgraded to the affirmative resolution procedure.

Proposed Negative Statutory Instruments about which no recommendation to upgrade is made

1 Directive 2008/106/EC (amended by Directive 2012/35/EU) and Directive 2005/45/EC.



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