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EU Exit and European Affairs

Implementing the Trade & Cooperation Agreement on energy and climate

Following the conclusion of the negotiations on the future relationship between the UK and the EU, a Trade & Cooperation Agreement (TCA) was approved by both parties on 24 December 2020. The UK left all EU arrangements on 1 January 2021 and now trades with the EU on the terms of the TCA.
Throughout the negotiations during 2020, Energy UK remained closely engaged with the BEIS negotiating team on energy and climate and now intends to continue to work closely with the relevant BEIS teams to deliver the implementation of the provisions on energy and climate.

The main areas of work for 2021 will be the development of new electricity trading arrangements, the linkage of the EU ETS, the creation of new platforms for cooperation between UK and EU Transmission System Operators, as well as for regulators, and the creation of a new forum for cooperation in the north seas. Domestically, some consequences of the UK exiting EU arrangements also need to be addressed. The two main ones we are working on are managing the technical issues with the UK ETS, and the recoupling of the Day Ahead market.

Energy UK will carry on its engagement with the UK government and the EU throughout 2021, through regular meetings with relevant government departments, with Ministers and MPs, as well as working collaboratively with other relevant stakeholders to ensure the energy and climate provisions in the TCA are implemented to support the ongoing work toward net-zero. We will also continue our engagement with European associations- Eurelectric and Eurogas- on a number of topics in various policy areas.







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