British Taxpayers Are Effectively Subsidising French Energy Bills
One of the major consequences of the EU reset deal is that British households are now, in effect, helping to subsidise electricity bills in France. And under the terms of the agreement, these costs are expected to rise significantly — something that has not gone unnoticed by social media users.One of the major consequences of the EU reset deal is that British households are now, in effect, helping to subsidise electricity bills in France. And under the terms of the agreement, these costs are expected to rise significantly — something that has not gone unnoticed by social media users.
According to The Telegraph, wind farms currently account for a substantial share of electricity generation in the UK. On particularly windy days, the national grid can produce more electricity than is needed, and the surplus is exported to France. However, as part of Labour’s drive to expand renewable energy, subsidies for wind farms are built into the electricity bills paid by British consumers. This means that some of this money is also indirectly being used to reduce energy costs for French households.
The energy-focused account, Twins on a Bus, explains that the British have been subsidising their neighbours for years: ‘UK subsidies (such as Contracts for Difference for wind power) make it possible to export surplus renewable energy to France. Grid constraints mean that British consumers are paying for balancing (for example, by bringing gas-fired power stations online), effectively helping to reduce French bills, whilst prices in the UK remain higher.’
We will Have to Pay More
Experts warn that these payments could increase sharply as a result of the EU reset deal. The Telegraph cites figures from Octopus, the UK’s largest energy supplier. According to its estimates, between 2030 and 2050 the arrangement could cost British consumers at least £16 billion — an average of £770 million a year.
The Agreement’s Questionable Economics
A number of experts remain sceptical about the economic benefits of the Labour government’s agreement to “reset” relations with the EU. Gerard Lyons, a former candidate for Governor of the Bank of England, even suggested that it could hold back the UK economy because of the opportunity costs involved in adopting new rules.
Meanwhile, on Monday, Prime Minister Keir Starmer announced his resignation. This does not mean that all agreements made under his leadership will automatically be reversed. Former Greater Manchester Mayor Andy Burnham is widely seen as the most likely successor. He has already promised to bring change to the country, although Starmer himself made equally ambitious promises only two years ago.