EU Leaders Want Britain to Pay for Access to Europe’s Electricity Market

Updated 10 Nov 2026, 15:57 · First published 10 Nov 2026

Five EU countries, including Germany, want Britain to pay into the bloc’s regional development funds in return for joining the EU’s internal electricity market. They have set out the demand in a letter ten days before the next EU-UK summit.

The letter was signed by German Chancellor Friedrich Merz, Belgian Prime Minister Bart De Wever, Danish Prime Minister Mette Frederiksen, Luxembourg Prime Minister Luc Frieden and Dutch Prime Minister Rob Jetten. It is addressed to European Commission President Ursula von der Leyen and European Council President António Costa.

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What the letter says

The five leaders want an agreement on a UK financial contribution to be tied directly to Britain’s access to the EU electricity market. In their view, the UK should not get the economic benefits of closer integration without paying towards the EU’s efforts to narrow the gap between richer and poorer regions.

The letter does not name a figure. The leaders want the summit on 20 November to agree “a path towards the conclusion” of the electricity talks, and describe a deal as “crucial” for giving clarity and predictability to businesses and investors on both sides of the Channel.

Why electricity matters

Since Brexit, Britain has been outside the EU’s internal energy market. Power still flows through undersea cables (interconnectors) to countries such as France, Belgium, the Netherlands and Norway, but trading is less efficient than when the UK was a member.

Talks on bringing the UK back into the electricity market have already started under the “Common Understanding” agreed by London and Brussels. Supporters say closer links would strengthen energy security, cut reliance on fossil fuels, make cross-border trading smoother and help joint projects in the North Sea.

The letter refers to ambitions for up to 100 GW of joint projects and 300 GW of offshore wind. For the UK, which has some of the largest offshore wind farms in the world, easier access to European buyers could matter a great deal.

The Norway model

Norway is not an EU member, but it takes part in the single market through the European Economic Area. In return, it pays into grant schemes that support less prosperous European regions – roughly €391 million a year, according to Norway’s mission to the EU.

A draft joint EU-UK statement suggests EU leaders broadly back the idea of a British contribution to cohesion funds, although the wording could still change before the summit.

What the UK government says

Energy minister Martin McCluskey said the UK is still negotiating to understand what the EU is proposing. He stressed that no amount or contribution has been agreed and said any payment would have to deliver value for money for Britain.

The issue is politically sensitive. Paying into EU budgets was one of the central arguments of the Brexit campaign, and any new payment is likely to face strong opposition from Brexit-supporting parties at Westminster.

What happens next

Leaders will meet at the EU-UK summit on 20 November. It will show whether the electricity talks are linked to a wider financial deal – and how much Britain might be asked to pay for a closer energy partnership with Europe.

Photo: Dietrich Leppert / Shutterstock