Baroness Anderson of Stoke-on-Trent (Lab)

Given that we have not touched on this point so far, it would be helpful to update your Lordships’ House. The UK and the European Commission have concluded exploratory talks on the UK’s participation in the EU’s internal electricity market. This closer co-operation will drive down energy costs and protect consumers against volatile fossil fuel markets. The UK and the EU will work at pace on these negotiations as we head into next year. While these are ongoing, we cannot comment on the specifics any further. To reassure the noble Lord on how this is going to impact energy bills, joining the EU’s electricity trading platforms will lower bills by reducing trade friction. More efficient electricity trading allows us to make more efficient use of our shared infrastructure. This deal will also support investment in North Sea electricity infrastructure, allowing us to reduce exposure to volatile wholesale gas costs. This is one component of household bills among many others, but we genuinely believe it will have a direct impact. The noble Lord is right: there is nothing more important to communities, especially where I live, than the cost of living crisis, and we need to do everything we can to support families.