Five EU states urge Brussels to speed up UK electricity market talks before 20 November summit

A joint letter ahead of the summit

Leaders of five EU member states have asked Brussels to accelerate talks on bringing the United Kingdom back into the bloc's internal electricity market. Their letter, addressed to European Commission President Ursula von der Leyen and European Council President António Costa, was seen by POLITICO and reported by the Guardian on Saturday, 7 November. According to POLITICO, the letter was sent earlier in the same week. The signatories are Friedrich Merz of Germany, Rob Jetten of the Netherlands, Bart De Wever of Belgium, Luc Frieden of Luxembourg and Mette Frederiksen of Denmark. They want the EU-UK summit in Brussels on 20 November to set out a path toward concluding the negotiations. UK prime minister Andy Burnham has promised to bring Britain closer to the 27 member states, a decade after the Brexit referendum.

Why the five governments want a deal

The letter presents an agreement as a way to unlock the full potential of the North Sea. The leaders describe the UK as a close partner in the energy transition and argue that integrating Britain into the market would help turn the region into the world's largest clean energy hub. Earlier this year the UK and nine other European countries signed a pact to speed up offshore windfarm rollout in the 2030s and build a power grid in the North Sea. The Guardian notes that Britain's exit from the electricity market is seen as holding that work back. Supporters argue a larger market would draw renewable investment and could bring down electricity prices in the UK, where the cost of living is a priority for Burnham. The summit agenda already includes youth mobility, simpler health rules for food products and the trading of carbon emission quotas, and the electricity file is being pushed onto that list as well.

What staying out costs

Energy UK, the body representing the British energy industry, says being outside the electricity market will create additional costs of up to £10bn during this Parliament, through higher energy bills and lower Treasury revenues. The same figure appears in other coverage framed over the years 2024 to 2029, so the period is worded differently depending on the account. Trade in electricity across the border has become more complicated since Brexit, and the cost estimate counts both higher power costs for consumers and smaller state income. The industry body presents the sum as a reason for London to revisit its position, and the five governments cite the same economic logic in their letter.

The price of re-entry

Brussels is not offering the deal for free. The EU says the UK would have to contribute to its cohesion funds, which support economically weaker regions, as the price of taking part in the market. London would find that demand politically difficult. An EU diplomat who spoke on condition of anonymity described the required payment as investing in market access. British officials are wary of a deal in which taxpayers' money could end up funding infrastructure projects in central and eastern Europe, according to the Guardian. The same newspaper recalls that talks on Britain entering a €150bn (£125bn) EU defence fund collapsed last year over the size of the UK's contribution, a precedent that makes the cohesion question sensitive.

Timeline and what happens next

Talks on UK re-entry began after an understanding reached last year between Brussels and London, but progress has been slow. Negotiators are not expected to finish by the 20 November meeting. According to an EU diplomat, the group of countries wants the Commission to wrap up discussions by the end of 2027. Burnham, von der Leyen and Costa are due to meet in Brussels on 20 November, where agreements on food, carbon emissions and youth exchanges are on the table. The sequence of dated steps is shown below.