Correspondence

UK and EU letters agreeing way forward on energy dispute

Following successful EU-UK engagement, the EU has paused the WTO dispute on the Contracts for Difference scheme.

• From: Department for Business and Trade and Department for International Trade
• Published: 1 July 2022

Documents

Executive Vice President of the European Commission letter to the Secretary of State for International Trade (web version)

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Executive Vice President of the European Commission letter to the Secretary of State for International Trade (PDF version)

PDF, 143 KB, 1 page

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Secretary of State for International Trade letter to Executive Vice President of European Commission (web version)

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Secretary of State for International Trade letter to Executive Vice President of European Commission (PDF version)

PDF, 115 KB, 3 pages

Details

A challenge by the EU on the Contracts for Difference scheme was brought to the World Trade Organisation (WTO) on 28 March 2022. The scheme supports low-carbon electricity production, helping increase renewable energy capacity and reducing the cost of renewables.

On 1 July 2022, Trade Secretary Anne-Marie Trevelyan and Executive Vice-President Valdis Dombrovskis exchanged letters which confirmed that UK-EU consultations had paused the dispute.

The UK has shared further guidance to developers on Contracts for Difference.

The fourth round of allocations for the scheme is our biggest ever. The fifth allocation round is due to begin in March 2023.

Published 1 July 2022