Perhaps the tidal channel which separates us can offer energy solutions but in the interim, working together could help.
The UK’s energy supply problems are hardly news and we are not alone, with much of Europe seeing costs rise beyond reason. Even energy rich Norway can’t escape, not least in the South, where drought has reduced hydropower supplies.
Their government is offering up to 80% subsidies on bills, other countries are providing aid, the UK’s 2 year plan announced in early September. The focus has however mainly been on domestic bills.
Understandable, when forcing people to choose between eating and heating is not rational but business also needs energy support. Insolvencies with associated job losses, or higher inflation led by business energy costs will not help consumers.
Some countries are offering support, the UK is proposing a 6 month scheme for business but longer term solutions are essential.
Sharing The Load
As unified as the EU is, individual countries can look to their own solutions in times of crisis and this has happened to a degree on energy. EU energy ministers are now getting together to build a more coordinated approach.
They have already reached agreement on reducing Russian imports and established a joint energy buying capability. The intention is to use the EU’s collective economic clout to achieve better prices on the world market.
Joint purchasing also stops one EU member outbidding another and the wider the club the better. One part of the reason that senior EU politicians have made a surprising invitation, for the UK to join their European energy collective.
Regardless of views on separation, this could make economic sense for both sides and help to avoid energy related conflicts.
An Inescapable Link
Mainland UK and Europe are energy interconnected, Northern Ireland and Ireland more so. They share a single electricity market, which is also connected to mainland Britain but the Republic of Ireland is in principle subject to EU energy regulations.
Bearing in mind the difficulty to date over agreeing on goods, negotiating further separation of critical energy markets is likely to be awkward. Economic benefits apart, joining in could help to set much discussion aside.
If the UK and EU end up on divergent routes, how are they controlled. Do we want to see cables from the same Irish substation colour coded for North and South, or cross channel gas and electricity connectors unilaterally restricted.
Nobody knows if such absurdity would happen but recent history does not bode well. Cooperation makes more sense, although how could this be packaged to be acceptable to a Brexit leaning, governing party.
The Rational Route
Businesses need to work together on reducing energy use at peak times and energy saving in future. The issue of decoupling gas and electricity markets is not simple and would benefit from international cooperation.
The same applies to price differentials for electricity produced by nuclear, or renewable sources, to profit margins of cross national energy companies. There are also those in the chain with survival doubts, such as utility companies.
A unified approach makes business sense, if nearby economies suffer, we all get pulled down. This is an opportunity to come together on energy, which may help in other areas but is in any event logical for individual nations.
Hopefully the most dogmatic of separatists can at least be persuaded to enter dialogue. On a major problem which did not exist at the time of Brexit and where joining forces does not mean rejoining the EU.