Can you afford to wait for an EU energy reset?

Energy Solicitors Limited (ESL) has welcomed moves by the Government to enter fresh talks with the EU focusing on re-entering the bloc’s shared electricity market.

But business consumers have been warned there will be no quick fix to spiralling energy bills.

And even if a deal can be struck between Sir Keir Starmer’s team and their European counterparts, experts are predicting annual savings will be minimal.

“Right now we’d urge businesses looking for some respite from energy costs to take this news with a pinch of salt,” said ESL’s Victoria Myers.

“While we welcome the confirmation that talks on re-entering the shared electricity market are likely to happen off the back of this week’s reset, any progress will take time.

“It’s important to focus on the here and now. One area where businesses can benefit is by reassessing their current energy contracts and identifying any red flags.

“ESL has a track record for doubling down on the detail and exposing instances of mis-selling and that’s the first step towards recouping money owed.

“I don’t think anyone should view any upcoming talks between the UK and EU around an energy reset as some kind of silver bullet.

“It’s a positive step forward but we need to look at the bigger picture.”

British firms have broadly welcomed talks to secure closer alignment on energy, with the CBI amongst those hailing the potential of Sir Keir Starmer’s new pact.

Following Brexit, the UK is no longer part of the EU’s shared electricity market which allowed member states to trade electricity without restrictions.

But this week’s reset opened the door to additional post-Brexit costs to energy companies being scrapped altogether — with as much as £370m saved annually.

That could well equate to savings of less than £100 annually for business and household consumers.

And although that figure is minimal it is hoped rejoining the shared electricity market will push forward plans to regulate the UK energy sector.

“That could be where the real benefit lies,” added Victoria. “ESL is keen to widen the debate around regulation, greater transparency and fairer bills. 

“Any reset in relations with the EU will surely involve a closer look at how the UK’s energy sector operates.”

The EU is still the UK’s primary trading partner when it comes to electricity but leaving the shared market was a hammer blow to energy companies — with extra costs passed on to customers.

And Adam Berman, of Energy UK, which represents UK energy firms, described the move as ‘really positive’.

“Anything we can do to lower bills, whether it’s £5 or £10 a year, is frankly worth it,” he said.

Victoria agrees but added: “For now ESL remains committed to championing businesses chasing money owed.

“I’d like to think that by the time UK businesses are benefitting from the reset their energy bills will be easier to understand and better value, and the era of mis-selling and unscrupulous third party intermediaries a thing of the past.”