Coronavirus - The impact on the energy sector

UK focused webinar in association with REA discussing the UK Government’s business continuity activities and finance support mechanisms around support measures for the renewables sector in the UK.

A Global Live Q&A webinar hosted across ESUS and EVSEL regarding market volatility, disruption of the supply chain, the impact of a reduced workforce and workforce management on maintaining business operations, reducing power prices and understanding and accessing governmental support packages.

A Global live webinar discussion led by US and UK focusing on re-entry strategy and what global businesses can expect in a changed working environment as they begin to resume operations once lockdown restrictions are lifted.

Our 150 strong global Clean Energy and Sustainability Team is working and available 24/7 and our focus will be on helping you where we can to effectively manage the challenges facing your business.

The Russian government has adopted a number of measures to support businesses during the COVID-19 pandemic inlcuding changes in legislation in the field of subsoil use and energy.

In an attempt to stem the virus outbreak in Europe, a number of European Union (EU) and Schengen zone Member States exercised their right to temporarily re-introduced border controls between themselves and other Member States. Pursuant to the Schengen Borders Code, where immediate action needs to be taken in order to adequately respond to a threat, a Member State may reintroduce border controls for 10 days without prior notification, this reintroduction may be prolonged for a period of up to twenty days.

The current COVID-19 pandemic has triggered a range of medical, social and economic consequences around the world. The effects on commerce have already been dramatic and for those of us who advise on global trade, supply chain issues and contractual risk management, the number one emerging issue is that of force majeure.

The law on force majeure differs from country to country, not least between common law and civil law jurisdictions. How and when should you serve a force majeure notice? What remedies are available? Are there other contractual remedies such as frustration in a particular jurisdiction? This guide provides some preliminary advice on those issues and more across 32 different jurisdictions.

On 30 January 2020, the World Health Organization (WHO) declared a Public Health Emergency of International Concern (PHEIC) in response to the spread of the Wuhan coronavirus, the sixth time that the WHO has made this declaration since adopting the PHEIC procedure in 2005.

The spread of the coronavirus gives rise to commercial and practical issues for businesses in China and globally. A number of countries have suspended travel and freight to and from China, while there are also similarly severe restrictions within China, and many countries have evacuated their citizens from Wuhan. The outbreak and the measures undertaken by the Chinese Government to contain it, are already resulting in serious business disruption for a number of companies and based on our experience of previous outbreaks such as SARs, the impact only promises to worsen. Examples of businesses most affected are (i) those that rely on international trade that will be disadvantaged by trade restrictions, delays and deviations in deliveries, port closures etc; (ii) the Chinese shipbuilding and construction industry that is already affected by extensions in holidays, lack of work force, dwindling food supplies etc; (iii) transportation industry with vessels being deviated or held away from Chinese ports; and (iv) commodities and energy trading.

Following the detection of a new coronavirus strain of pneumonia in Wuhan, China in late 2019 (now named ‘COVID-19’), the subsequent scale of the outbreak and the measures undertaken by various governmental authorities to contain it, have resulted in a rising number of claims from companies connected with the manufacturing and servicing of onshore and offshore wind turbines.

The Low Carbon Contracts Company (“LCCC”), the counterparty for the UK’s Contracts for Difference (“CFD”) scheme, issued an advice note on 7 April 2020 confirming that COVID-19 is capable of constituting a Force Majeure event under CFD Agreement.

As a reminder, the Financial Reporting Council (FRC) published advice to all companies and auditors on COVID-19 related risk disclosures in year-end reports.