Pave the way for efficient EU-UK electricity exchanges

Efficient, fair and open energy markets are absolutely critical to achieving the aims of optimal operation and investment. In order to secure the required investments to transform the North Seas into the Green Power Plant of Europe, which could run into the billions, investors need confidence that their assets will be operated in the most optimal and efficient way – based on trusted market principles.

As the GB markets are no longer part of the European Internal Energy Market, capacity on most interconnectors from the EU to GB market is allocated using explicit capacity rights. This is an inefficient mechanism to operate existing interconnectors, and it will even have a bigger impact on future more complex cross-border infrastructure such as hybrid interconnectors. It is essential that an efficient and well-known mechanism, i.e. implicit price coupling, is re-established by the UK and EU/EEA institutions, in order to maximise benefits for EU and UK consumers and to enable future investments.

In the signatories view, re-establishing a system of price coupling between the IEM and GB markets is the only market mechanism able to realize the untapped potential of the North Seas. It is broadly recognised that this would provide the framework for the optimal development and operation of the North Seas, meeting the climate and energy goals of the EU and UK. We call upon both sides of the seas to seize the opportunity to overcome the past political impasse following the UK’s withdrawal from the EU and to open up for a new phase that allows mutual benefits to be secured via a pragmatic approach.