Eurelectric, together with a coalition of 18 European energy associations and transmission system operators have sent a letter to the North Seas energy ministers calling for the prioritisation of a more efficient electricity trade between the UK and EU.
The letter explains investors are reluctant to commit to new projects in the North Sea due to the uncertainty triggered by the current situation and lack of an efficient mechanism in place. The current EU and UK Trade and Cooperation Agreement (TCA) Annex 29 foresees the implementation of the Multi-Region Loose Volume Coupling (MRLVC) mechanism, but it could introduce market inefficiencies and delays. Thus, instead, the letter calls for the reestablishment of a price coupling mechanism between the GB and EU electricity markets to contribute towards, improving energy affordability and securing decarbonisation before 2050.