Brussels has issued guidance to EU member states advising against granting the UK expanded access to the bloc’s electricity markets, despite warnings from industry leaders that this stance could result in higher energy costs and impede progress towards net-zero goals.
The European Commission’s position, outlined in a newly circulated policy document, reinforces its ‘no cherry-picking’ stance towards the UK’s relationship with the single market. The 19-page working paper explicitly states that sectoral participation in the EU energy market would conflict with the union’s interests and European Council guidelines.
Industry experts have responded with disappointment to this development. A senior energy executive described the commission’s position as “extremely disappointing and frankly very shortsighted.” The stance particularly threatens the development of renewable energy projects in the North Sea, where the UK and eight other nations have committed to generating more than 310GW from offshore wind by 2050.
The current trading arrangement, known as multi-region loose volume coupling (MRLVC), has faced significant implementation challenges and may not be ready when the existing energy deal expires in June 2026. Industry groups have proposed extending the EU’s price-coupling mechanism to the UK market, suggesting potential savings of €44bn for consumers by 2040.
The impact of this restricted cooperation could be particularly significant for projects such as Princess Elisabeth Island, which aims to integrate cables from Belgium’s offshore wind farms with interconnectors from other countries. Elia Group, the electricity transmission operator, has emphasised that deeper market integration is crucial for maximising the potential of North Sea wind power generation.
Despite the UK being a net electricity exporter to the EU since the Brexit agreement, the commission’s stance remains firm. This position threatens to create ongoing uncertainty for investors and potentially higher electricity bills for consumers on both sides of the Channel.
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