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It is clear that there is a deep concern among British business leaders that the EU is notworking in their interests. At the very least, these results suggest that there needs to be asubstantial return of powers to the UK.Finally, when asked what they would like the future relationship between Britain and the EUto look like, a majority of manufacturers made it clear that they thought that powers shouldreturn to the UK, with the majority calling for the return of powers. Only 6 per cent opted forcloser integration (full details are provided in Table 7).Table 7: Views on the future relationship between the UK and EUPlease say which of the following best describes what you think Britain should do? (%)All businessesManufacturingIntegrate more deeply with the EU, eventuallybecoming part of the Eurozone.Remain a member of the EU but don’t join theEuroRemain a member of the EU but repatriatesome powers back to Britain only so long asEU-wide reform is achieved creating a multitierEuropeNegotiate a new relationship with the EUbased on trade with the Single Market andallow non-exporting British companies theability to opt out of European legislationLeave the EU and don’t negotiate a newrelationship10 621 2120 1828 3616 17Don’t know 5 34.2Promoting cross border tradeThe EU is clear that it sees improving cross border trade and completing the Single Marketin energy as the main tool for lowering energy prices. There are certainly many potentialbenefits which come from removing barriers to trade: the prospect of larger markets andmore competition means a Single Market in energy has always been an attractive idea.However, attempts to improve the Single Market need to be reviewed critically to make sureany future proposals actually do improve cross border trade.The British Government has already taken the lead in promoting more cross border tradebetween the EU member states. David Cameron recently wrote a letter to the Presidentof the European Council, Herman Van Rompuy, stating that the EU needed “to establish aEnergy Policyand the EU48
genuine, efficient and effective internal market in energy by 2014… Energy interconnectionshould be enhanced to help underpin security of supply.” 160This is a promising intervention but the UK cannot rest on its laurels. The UK has fullyimplemented the Third Energy Package, the first country to do so, however the fact that theUK was the only state to introduce this package early on and the patchy record of the othermember states in implementing it has led the Trade Policy Research Centre to warn that“Energy is yet another area where the UK’s efforts to achieve EU reform have been less thansuccessful”. 161 The UK has a right to demand that other member states comply with theircurrent Treaty obligations faster so that the UK isn’t put at a disadvantage.Clearly further action is needed by the EU to make sure that interconnection is madeavailable. However, “completing the Single Market” cannot be allowed to become a catch-allterm which justifies unnecessary harmonisation or further over-prescriptive regulation. Theassumption that harmonisation and more regulations will complete the Single Market andwill bolster competitiveness can also only be taken so far. Tendency towards harmonisation,while useful in certain cases, is not always beneficial. Energy UK has noted that in certainareas, in particular interconnection, “a one-size-fits-all EU approach is not appropriate”. 162“It is important in our view that the Network Codes focus particularly onovercoming barriers to trade and do not impose unnecessary costs. Thisis particularly important for a mature competitive market such as the UK,where costly system changes could be required without major benefit interms of promoting cross border competition.”- Energy UK 163Harmonisation and interconnection is important for exporters, but it cannot be seen as acure all to the problems that EU policy has created. The fact that several proposals haven’teven improved cross border trade just underlines the limits of this approach.The European Commission has a poor track record of introducing expensive and ineffectiveregulation in the name of “completing the Single Market”. While there are many potentialbenefits in dismantling barriers to trade, protections are needed to make sure that“completing the Single Market” doesn’t become an excuse for introducing unnecessarylaws.160 Joint letter to President Van Rompuy and President Barroso, 20 February 2012, found at 161 Trade Policy Research Centre, The EU, Energy and Climate Change, p. 11, 23 October 2012162,163 Energy UK, Balance of Competences Review, 15 January 2014, found at 49
Page 2: Business for Britain exists to give
Page 9: In a recent letter to the President
Page 14 and 15: in the US. While this would be conc
Page 16 and 17: This divergence is not confined to
Page 18 and 19: Commission has itself acknowledged
Page 20 and 21: 2.4The rising costs of EU energy re
Page 22 and 23: It is important to note that many o
Page 24 and 25: 3.1The impact of high energy costs
Page 26 and 27: MetalsTOTAL UK EMPLOYMENT471,000 in
Page 28: Chemicals and chemical productsTOTA
Page 31 and 32: INDUSTRY CASE STUDY 3.1.3Figure 14:
Page 39 and 40: “Energy discussions play a major
Page 41 and 42: were also closing faster than expec
Page 43 and 44: Increased energy dependence3.6Anoth
Page 45 and 46: Despite these problems, the EU’s
Page 47: 41 per cent of British manufacturer
Page 51 and 52: The EU should also make it clear th
Page 53 and 54: should be considered: were the UK t
Page 55 and 56: Conclusion5The EU’s energy policy
Page 57 and 58: Table 8: All energy Impact Assessme
Page 59 and 60: IA TitleImpact Assessment: Amendmen
Page 61: “Energy Policy and the EU is a ti

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