Brexit threatens to add hundreds of millions of pounds to energy bills as Britain leaves an EU platform that enables efficient trading through subsea power cables with the Continent, according to a Policy Exchange report. The think tank said that development of new electricity “interconnectors” with France and other countries also risked being delayed due to the uncertainty over trading arrangements. The report warns that “from 2021, the integration of UK and EU energy markets will go into reverse for the first time in decades” and called for both sides to form a new energy agreement to continue efficient trading. A system of “market coupling” automatically schedules interconnector usage to ensure electricity flows from lower priced regions where there is surplus, to higher priced regions where it is scarce. Research by Imperial College London estimates that uncoupling could increase costs by as much as €700 million a year, and Policy Exchange warns that “any cost increases would impact on customer bills”.
Times 28th Sept 2020 read more »