PARIS (Reuters) - French electricity grid operator RTE has prepared an auction mechanism which would permit continuity in day-ahead electricity auctions between Britain and France in case there is no deal for Britain to leave the European Union on March 29.
RTE said in a note to power market participants it had submitted market terms and conditions to the French energy market regulator CRE, and would be able to implement the new terms of the auction from March 30.
It added that a no-deal Brexit would have no impact on yearly, monthly and intraday France-England power capacity auctions because the auctions are carried out on a bilateral platform dedicated to the French-English border.
Day-ahead delivery auctions, would be impacted however, the grid operator said.
A hard Brexit risks pushing Britain’s day-ahead electricity price higher because it would lose access to a wider European power market where it can source cheap power produced elsewhere from any of the 28-member states in the bloc.
The European Commission said in April last year electricity market operators based in Britain will become third country operators and will no longer be entitled to carry out market coupling services in the EU.
The market coupling service allows Britain to buy electricity produced from any of the 28 member states.
Britain warned operators of electrical power links with Europe in October they will need to set up alternative trading arrangements if it leaves the EU with no exit deal.
Reporting by Bate Felix; editing by David Evans