Brexit cost: higher energy bills and lower investment

Scottish Government calls for closer energy links with Europe

The Scottish Government is calling for closer co-operation with Europe to help lower energy bills and boost investment.

Ahead of upcoming UK Government talks with the EU the Scottish Government has published a report, identifying  a number of opportunities to more closely align with the European Union on energy matters.

These include:

  • accelerating the adoption of more efficient UK-EU electricity trading arrangements to bring down energy costs for consumers
  • linking the UK and EU Emissions Trading Schemes (ETS) to help reduce costs and barriers to trade

Estimates from the UK energy industry predict that unless the UK moves toward closer cooperation with the EU on energy and climate, it may lead to additional costs of up to £10billion in 2024-25, through higher energy bills and lower Treasury revenues.

The Scottish Government’s wants Scotland to be an EU member state, however the report published today sets out immediate actions which would rebuild closer collaboration with the EU on energy and climate matters and offset some of the damage caused by Brexit.

Acting Cabinet Secretary for Net Zero and Energy Gillian Martin said: “As we approach the fifth anniversary of Brexit, the costs to the people of Scotland are becoming ever clearer.

“The best future for Scotland is to be a member state of the EU. But we will always be a voice for closer co-operation with our fellow Europeans – in particular around issues which impact us all such as lowering energy bills and driving up investment in renewables.

“This paper highlights the key areas where working together is vital for achieving our shared ambitions – driving economic growth, reducing costs, strengthening energy security and substantially contributing to our shared climate goals.

“We have a pivotal role to play and stand ready to work collaboratively with the UK Government and wider partners to re-build a closer relationship with Europe in this space.”

Read the Closer energy and climate cooperation with the EU report

Energy UK Explains: the cost of the UK-EU relationship for energy – Energy UK