Five European leaders urge UK to rejoin EU electricity market before Brussels summit

Leaders from Germany, Belgium, the Netherlands, Luxembourg and Denmark have issued a joint call for closer ties with Britain ahead of a significant EU-UK summit in Brussels. In a letter addressed to European Commission president Ursula von der Leyen and European Council president António Costa, the five heads of government argued that deeper cooperation on clean energy would yield mutual benefits. The correspondence, which was seen by the Guardian, urges both sides to agree on a pathway to conclude ongoing negotiations regarding Britain’s return to the EU’s internal electricity market during the upcoming meeting.

The summit is scheduled to take place on 20 November, where von der Leyen and Costa are expected to meet Andy Burnham. The primary objective of the gathering is to finalise agreements on several key areas, including food and drink standards, carbon emissions, and youth exchange programmes. However, the five signatories have placed particular emphasis on the energy sector, describing the United Kingdom as a close partner in the global energy transition. They contend that integrating Britain into the EU’s internal electricity market is essential to unlocking the full potential of the North Sea region. The leaders stated that such integration would transform the area into the world’s largest clean energy hub.

This push for closer energy ties follows a pact signed earlier this year by the UK and nine other European countries. The agreement aims to accelerate the rollout of offshore wind farms in the 2030s and to construct a power grid in the North Sea. Industry observers and policymakers view Britain’s current exit from the EU’s internal electricity market as a constraint on the development of North Sea energy projects, contributing to increased costs. The five leaders in the letter explicitly called on von der Leyen and the UK government to agree on a path towards the conclusion of these negotiations during the summit, highlighting the strategic importance of the move for both parties.

Despite the strong advocacy for reintegration, the proposal faces significant political and financial hurdles. Bringing Britain back into the internal electricity market would require the UK to make contributions to the EU budget, specifically to cohesion funds that support economic development in poorer regions. British officials have expressed caution regarding any deal that might see taxpayer money used to fund infrastructure projects in central and eastern Europe. This sensitivity to financial contributions was evident last year when negotiations for Britain’s entry into a 150 billion euro EU defence fund collapsed over a dispute regarding the size of the UK’s contribution.

To mitigate concerns over potential financial disputes, North Sea member states are emphasising the economic benefits for British consumers. A European diplomat noted that the UK would not merely be paying into cohesion funds but would be investing in access to a more integrated, secure and competitive European energy market. This, the diplomat argued, would lead to more efficient electricity trading and result in lower costs for UK consumers. Supporting this view, figures from the industry body Energy UK, published in 2024, suggest that if the current energy relationship remains unchanged, Britain could incur extra costs of 10 billion pounds between 2024 and 2029. These costs would manifest through higher energy bills and lower Treasury revenues, with Brexit barriers becoming increasingly significant over time and frustrating the UK’s potential to realise the full benefits of growth in offshore wind power.

The political landscape in the UK has also shifted towards closer EU engagement. Since becoming prime minister, Burnham has stated that the government would examine various options for the UK’s relationship with the EU. These options include a customs union, a return to the single market, or full membership. However, Michel Barnier, the EU’s former Brexit negotiator, has cautioned against a selective approach. Speaking to the BBC, Barnier asserted that the UK could not rejoin the single market on a piecemeal basis, emphasising that the four freedoms are the clear conditions for being inside a single market and that there is no possibility of cherry-picking individual freedoms.

Domestic support for greater ties has been voiced by Labour MPs, including Stella Creasy, chair of the Labour Movement for Europe. Creasy, who is campaigning for a de facto second referendum to be included in the party’s next manifesto, argued that geography is a fixed constraint that cannot be fought. She noted that the UK’s exports have declined due to the substantial economic impact of leaving the EU, creating significant friction in trade with the world’s biggest trading bloc. Creasy described Burnham’s recent comments expressing a desire for a closer relationship with the EU as telling the truth. The government further signalled its intention to move closer to the EU by announcing the return of the Erasmus+ scheme, which the UK left under the 2020 Brexit deal. The UK will rejoin the scheme in January, allowing students and young people to study, train or gain work experience in the EU. Culture secretary Lisa Nandy described the move as a clear symbol of the government’s ambition and intent to provide every young person with the opportunity for international exchange.