Need we say more after uttering the word "Brexit"?
Naturally, it's an area which has deep-reaching connotations for almost everybody regardless of their stance. The energy industry is one which has been subject to incredibly high levels of scrutiny and arbitration in recent years so there is a very big question mark left in the wake of "Brexit".
As a result, it features at this year's Energy Trading Regulation & Compliance Summit and we've teamed up with Michael Beer from Swisselectric who will be participating at the summit.
Ahead of the big day next March 8-10, we got the chance to ask him a few questions.
Please tell us briefly about your role as well as what you’re currently working on?
I’m a public affairs manager at Swisselectric. And currently I’m mainly working on market, and design issues regarding the remuneration of hydro-power plants which is quite difficult in the current market situation, and I’m trying to develop new models; new potential changes in market design to help us survive.
How did you get into the regulation side of things?
I have been with energy producers for 3 or 4 years where I sat on the strategy team where regulation become more and more important especially in the financial market. This is why I came into contact with all these new EU regulations in like MAR and REMIT -- it’s a big topic and that is what I’m looking at the moment but it has less importance now.
“I think in short term there are not many opportunities but in the long term maybe that Britain develops regulation that is leaner than EU regulation...”
What do you think are the big challenges and threats "Brexit" poses on energy markets?
There is a lot of uncertainty in the system, and that is always bad for the market.
We don’t know how the regulatory environment will be in some years and of course there will be an increase of regulatory costs and compliance risks for companies. They can’t rely anymore that EU law is applicable in Britain, maybe there are other processes and other regulations coming also.
Do you think that is a chance of staying the same as someone from a Swiss company?
Yes, but still we have our own regulations which have slight differences from EU regulation. Sometimes this can be an opportunity because something, can maybe be a bit less regulated than in EU, for companies located in Switzerland. But still have any complies with both of them, you’re still in an international market and this made more cumbersome and for someone who is just active in EU for example.
“There are still to many benefits of being an EU member (and many questions unanswered) to say that one party will come out as a "winner" over the other.”
You spoke about the opportunities in cumbersome, can you elaborate on that?
I think in short term there are not many opportunities but in the long term maybe that Britain develops regulation that is leaner than EU regulation that could be some opportunities but of course the limits are there, because most of these regulations are global standards now, for example the derivative regulation EMIR that is based on the guidelines from the global financial stability board.
Is it more simple for the UK or for the EU?
I think it could be simple for companies located in UK - I don't see much opportunity for the EU countries. There are still too many benefits of being an EU member (and many questions unanswed) treo say that one party will come out as a "winner" over the other.
What do you think?
Is it still too early to tell what the impacts of Brexit will be on the energy markets?
Or are we looking at global standards dictating “closer ties” regardless of politics?
Let us know!
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