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Policy & Regulation

State aid poses challenge for post-Brexit energy market

A Europe-wide level playing field on state aid rules after Brexit seems a prerequisite for a well-functioning internal energy market, but can it be achieved? A Europe-wide level playing field on state aid rules after Brexit seems a prerequisite for a well-functioning internal energy market, but can it be achieved?
By Andreas Walstad 23 November 2018 Europe & Russia / Policy & Regulation 0 33418
European Chief Brexit Negotiator Michel Barnier (left) hands the draft withdrawal agreement to EU Council President Donald Tusk. (PA)

The UK is well interconnected with the European continent in terms of its gas and power networks, but it is hard to imagine a truly integrated energy market in Europe if the UK has much more flexible rules for national subsidies than the 27-nation bloc it is leaving.

The temporary suspension of the UK’s capacity market following a court ruling last week, for example, shows that EU state aid rules form an integral part of Europe’s internal energy market. 

To this end,