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Electricity: UK Trade with EU

Asked by Mike WoodConservativeCabinet OfficeTabled Answered 19 January 2026UIN 105237

The question

To ask the Minister for the Cabinet Office, further to the policy paper, Outcome of the exploratory discussions on the possible participation of the United Kingdom in the European Union’s internal electricity market, published on 22 December 2025, what assessment he has made of the potential impact of dynamic alignment on the ability of the UK Government to deregulate.

Answered by Nick Thomas-Symonds

An electricity agreement with the EU will cut the cost of trading electricity with the EU - this means lower wholesale costs and ultimately lower bills. To unlock these benefits we are prepared to take the pragmatic decision to align with EU rules in the national interest. The outcome from exploratory talks is clear that where we align with EU rules as part of any future electricity agreement there would be adaptations and phasing-in periods to ensure the rules work for the UKelectricity sector, as well as decision-shaping rights when new EU policies are made.

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