Answer given by Ms Simson on behalf of the European Commission
27.9.2023
The Commission is committed to working with the United Kingdom (UK) and with the Member States to find a solution for day-ahead electricity trading between the EU and the UK in line with the terms of the Trade and Cooperation Agreement[1] (TCA).
The discussions on this topic have been taking place within the format of the Specialised Committee on Energy (SCE), which gathers both EU and UK representatives. At this stage, the EU and the UK are still exploring options.
When the UK left the EU, it could no longer participate in the EU single day-ahead market coupling, which uses the Euphemia algorithm.
Day-ahead electricity trading between the EU and the UK therefore reverted to what is known as explicit trading. Article 312 of the TCA envisages the establishment of new arrangements on the day-ahead timeframe, known as Multi-Region Loose Volume Coupling, which are to be developed within the framework set out in Annex 29 of the TCA.
The SCE tasked Transmission System Operators (TSOs) with investigating options for implementing the new electricity trading arrangements.
The results of their Cost-Benefit analysis were discussed by the SCE which concluded at its meeting in March 2023 that the options investigated pose regulatory and delivery challenges and that further analysis was needed.
The TSOs were requested to provide additional information. This, together with the informal opinion of the EU and UK energy regulatory authorities, will be assessed by the EU and the UK with a view to finding a solution as a matter of priority.
Therefore, while the Windsor Framework[2] is a welcome development, detailed investigations into a possible technical solution have already taken place and the Commission continues to work with the UK and with the Member States towards a solution.