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Monday, 23 May 2016

The potential impacts of Brexit on energy: An interview with Vladimir Parail of Oxera



http://www.renewableenergymagazine.com/article/the-potential-impacts-of-brexit-on-energy-20160523



The looming EU referendum has caused sweeping uncertainty across Britain, and one sector facing significant disruption from a ‘yes’ vote in June is the energy market. Today differences in carbon taxation and charges levied on generators between Britain and other EU markets amount to a subsidy on electricity imports into Britain. This creates a situation in which British electricity generators are not on a level playing field with regard to competition to their EU counterparts and creates distortions in trade in electricity. In light of this, Britain may choose to mitigate such distortions by imposing tariffs on imported electricity in the event of a Brexit, although this in turn would make any agreement on trade with the EU much more difficult to realise.

REM talked to Vladimir Parail of global economics consultancy, Oxera to find out more about the potential impacts of each of the two possible outcomes on energy in Britain, including potential impact on renewables and climate change.

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