MPs have warned that Brexit is making energy more expensive for UK households, with some arguing that leaving the EU has led to higher prices, inefficiencies and reduced energy security.
During a debate in Westminster Hall today, Liberal Democrat MP Wera Hobhouse (Bath) and others called on the government to address the impact of Brexit on energy price rises, accusing ministers of ignoring the issue.
Brexit and rising bills
Hobhouse argued that while factors like inflation and global energy shocks have contributed to rising costs, Brexit has played a significant but often overlooked role.
"Since leaving the EU, we have lost the benefits of being part of a shared European energy market," she said. "When we were inside the system, electricity flowed freely across borders, reducing costs and improving security. Now, without proper cooperation, we are facing inefficiencies, higher prices, and weaker energy resilience."
She warned that the UK’s departure from the EU’s energy trading arrangements has led to increased volatility in electricity prices, making energy more expensive for households.
UK falling behind Europe
Hobhouse pointed out that while EU countries are making progress in lowering costs through shared energy policies, the UK is being left behind.
"In the first half of 2024, gas prices in the UK were 22% below the EU average, while electricity prices were 27% above it. We now have the highest ratio of electricity to gas prices in Europe, and it’s putting us at a disadvantage," she said.
The imbalance, she argued, is preventing people from switching to cleaner heating technologies like heat pumps, which are widely used in European countries such as Sweden.
Calls for rejoining energy market
Several MPs supported the argument that Brexit has made energy policy more difficult and called for closer cooperation with the EU.
Hobhouse suggested that the government should consider rejoining certain European energy frameworks, such as the 2030 climate and energy framework, to restore stability and reduce prices.
"We need to stop making Brexit an excuse for inaction," she said. "Reintegrating with EU energy markets where it makes sense would benefit everyone. We should be pragmatic, not ideological, when it comes to keeping costs down."
However, Conservative MPs defended the Government’s approach, arguing that global factors like the war in Ukraine and the post-pandemic recovery have had a bigger impact on energy prices than Brexit.
What happens next?
Despite growing pressure from opposition MPs, the Government has not indicated any plans to reconsider its energy relationship with the EU.
But as energy bills continue to be a major concern for households, the debate over Brexit’s role in rising prices is unlikely to go away.
With energy security and affordability remaining top priorities, the question now is whether ministers will acknowledge Brexit’s impact on energy prices.
