EU Leaders Press Brussels to Speed Up Electricity Deal With UK
Leaders of five EU countries have urged Brussels to "swiftly" sign a deal that would let the UK rejoin the single market for electricity. In a letter seen by POLITICO, the leaders of Germany, the Netherlands, Denmark, Belgium and Luxembourg asked the November summit to set out "a path" toward concluding the talks.
The letter was sent to European Commission President Ursula von der Leyen and European Council President António Costa. German Chancellor Friedrich Merz and Dutch Prime Minister Rob Jetten are among the signatories. They write that the agreement is "necessary to unlock the full potential of the North Sea" and to make it "the largest clean energy hub in the world."
Brussels and London agreed last year to begin negotiations on UK participation in the internal electricity market. According to POLITICO, progress has been slow, and talks are not expected to finish by the November 20 meeting. An EU diplomat, speaking anonymously, said a group of countries is urging the European Commission to wrap up discussions by the end of 2027.
Supporters argue the deal would attract renewable energy investment in the North Sea and could lower electricity prices. The EU says the UK would have to contribute to EU cohesion funds to take part in the market, which POLITICO describes as a politically difficult condition for London.
Energy UK, the industry's representative body, says remaining outside the market could create "additional costs of up to £10bn this Parliament through higher energy bills and lower Treasury revenues." The EU diplomat said the required payment would amount to "investing" in market access and predicted lower UK electricity prices from a larger market.
The November 20 meeting is expected to see both sides sign three other agreements, covering youth mobility, emissions trading and agri-food rules. Brussels and London also plan to issue a joint statement that will address the electricity talks.