Marc Hammerson Quoted in Law360 on Impact of Brexit on U.K. Energy Market
Marc Hammerson, a partner in Akin Gump’s oil and gas practice, was quoted in the Law360 article “Attys React To UK’s Historic Decision To Leave EU,” offering his thoughts on the impact of the United Kingdom’s decision to leave the European Union.
Hammerson noted that while European authorities concentrated their efforts to create a single energy market in the 1990s, EU regulations in the past 20 years have “fundamentally affected the commercial landscape.” Different stages of bringing natural gas to market, he said, are now performed by separate companies.
Currently, Hammerson explained, “commercial use of infrastructure is open to Europe-wide third party access provided on a non-discriminatory basis and a charging structure using published tariffs. These regulations apply to infrastructure such as pipelines, LNG and oil terminals and inter-connectors between the U.K. and Europe.” Access to this infrastructure, he said, “is vital to reducing energy costs,” and these reforms have allowed European companies to gain a significant market share in the U.K.
Hammerson said that the U.K.’s exit from the EU “allows future U.K. governments — particularly less economically liberal governments — to shape policy without reference to EU laws on the single market. The current single market in trading energy will be subject to the membership exit terms to be negotiated by the U.K.”