DCRP/MP/19/04: - Modifications to The Distribution Code and Associated Documents for a No Deal EU Exit

What is being proposed

StatusProposerThe Distribution Code Review Panelwww.dcode@energynetworks.org020 7706 5105SummaryIn February 2018, Ofgem published its consultation on the implications for licences and industry codes and where amendments may be required in advance of the UK’s exit from the EU. Initial analysis accompanying that consultation identified potential modifications needed to the Distribution Code and linked industry code provisions.Subsequent analysis carried out by the Energy Networks Association (ENA) on behalf of the Panel has determined the proposed modifications needed to the Distribution Code, as well as associated documents including the Distribution Code Review Panel - Rules and Constitution and certain Qualifying Standards including ENA EREC G83, ENA EREC G98 and ENA EREC G99, in the event the UK leaves the EU without a deal.The proposed modification affects a number of requirements, which reference the need for compliance with EU legislation. In the event the UK leaves the EU without a deal, certain EU legislation and future decisions of the European Commission and Agency for the Co-operation of Energy Regulators will cease to apply to the UK after exit day (29 March 2019).The UK Government plans to introduce Statutory Instruments, by virtue of the European Union (Withdrawal) Act 2018, to ensure legislation (of both UK and EU origin) governing the UK’s energy networks is effective in this event. As such, certain EU legislation and aspects of it, will continue to form part of UK legislation after exit day. This is termed “retained EU law” and has the meaning attributed to it in section 6(7) of the European Union (Withdrawal) Act 2018 and includes any modifications to UK legislation made under the Section 8 of the of the European Union (Withdrawal) Act 2018 to address inoperabilities including but not limited to The Electricity and Gas Etc. (Amendment Etc.) (Eu Exit) Regulations 2019. The use of the term “retained EU law” in this proposed modification has the same meaning as that defined in the proposal for modification of the Distribution Licence.The effect of the proposed modification to the legal text in the Distribution Code and the associated documents stated in this Report, which are under the governance of the Panel, is to ensure that retained EU law and provisions in relevant Statutory Instruments, that have been prepared under the European Union (Withdrawal) Act 2018, are correctly addressed in the event the UK leaves the EU without a deal.ImpactConsultationThe Distribution Code public consultation sought views from industry stakeholders on the modification to the ‘DCode’ and the associated documents. It was published on the 6 March 2019 with a deadline for responses by 20 March 2019.DCRP/19/04/PC Consultation PackAuthority Decision

Details

Timeline

Analysis

Distribution Code code modification. See the codes page for full details.