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<p>The Government recognises the importance to businesses and households of having
access to an affordable, secure and sustainable supply of energy. The UK’s exit from
the EU will not alter the fact that our energy system is resilient and secure and
drawn from a number of sources.</p><p> </p><p>Many factors impact energy prices including
fuel prices, exchange rates and generation mix. Great Britain will remain physically
linked to the EU post-exit through electricity and gas interconnectors. We expect
that any change in electricity prices in Great Britain as a result of changes to interconnector
trading arrangements would fall within the normal range of market volatility. For
gas markets, the mechanisms of cross-border trade are not expected to fundamentally
change after exit. The UK gas market is one of the world’s most developed and provides
security through supply diversity, most of which is not dependent on the EU.</p><p>
</p><p>Energy regulators in Ireland and Northern Ireland have set out that the Single
Electricity Market (SEM) will continue to operate immediately after Brexit, including
in a No Deal scenario. The SEM is designed to put downward pressure on consumer electricity
prices, facilitate the integration of renewables and provide continued security of
supply. The UK is committed to seeking to maintain the SEM in any scenario and will
therefore take all possible measures to do so.</p><p> </p><p>The Government has taken
steps to enable electricity and gas trade to continue and maintain the effectiveness
of domestic regulation, providing legal clarity for industry on the future operations
of Great Britain and Northern Ireland’s energy markets.</p>
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