Britain’s energy industry says the agreement could help bring down electricity prices in the U.K. — a cost-of-living priority for Prime Minister Andy Burnham.
Energy UK, the industry’s representative body, says that being outside the electricity market will create “additional costs of up to £10bn this Parliament through higher energy bills and lower Treasury revenues.”
The same EU diplomat quoted above, from a country supportive of a swift agreement, said the financial contribution required to rejoin the market would amount to “investing” in market access.
“A larger electricity market will ultimately lead to lower electricity prices in the U.K. And of course, the U.K. is currently facing very high electricity prices,” they said.
“The U.K. would be investing in access to a more integrated, secure and competitive European energy market — bringing lower energy costs, greater investment certainty and huge opportunities for British businesses and consumers.”
Greater security of supply, more price stability, and greater certainty for investors would also be key benefits, they said.
While talks on the internal electricity market are not expected to conclude in time for this month’s summit, the Nov. 20 meeting is expected to see both sides sign off three further agreements on youth mobility, emissions trading and alignment on agri-food rules.
Brussels and London are also expected to issue a “joint statement” at the meeting which will address other issues, including the future of talks on the internal electricity market.