Emissions scheme linking could see lower power prices

Moves to link the UK’s emissions trading schemes with Europe could drive down the cost of electricity in the years ahead, according to industry leaders.

As part of a new agreement, the Government said closer co-operation on emissions will improve the UK’s energy security and avoid businesses being hit by the EU’s carbon tax due to come in next year. There is also a commitment to work together to create more jobs in the clean energy sector.

RenewableUK’s Executive Director for Policy and Engagement Ana Musat described the development as “potentially great news for billpayers in the UK and across the rest of Europe”.

“It could drive down the cost of electricity in the years ahead by stabilising prices and reducing trade friction - including trading in clean electricity generated in the North Sea via interconnectors between countries,” she said.

“Crucially, it could remove the need for the EU’s Carbon Border Adjustment Mechanism which is a tax on exports of electricity and goods from the UK and other countries into the EU.”