Brexit has made energy trading more expensive, Brussels demands compensation

The European Union will demand that Britain contribute financially to the development of poorer member states as part of an agreement to reconnect energy markets. This is according to an EU document and statements by diplomats.

The aim of the negotiations is to reduce the costs that Brexit has brought to cross-border energy trade, which, according to data from the British National Grid, have increased by approximately €1 billion and could reach around €400 million per year by 2030.

Brussels wants to introduce a legally binding mechanism to ensure "an appropriate financial contribution from the United Kingdom to reduce economic and social disparities between regions of the Union." The model would mirror the situation in Norway, which is not a member of the EU but contributes around €390 million per year in exchange for access to the energy market.

A similar agreement could be politically sensitive for London, as Brexit supporters promised control over budget contributions. A British government spokesperson responded that closer cooperation in the field of electricity has real benefits for consumers and businesses.

Negotiations are set to begin in the coming months, with the size of the UK's contribution still under discussion among EU member states.

(reuters, max)