Question to the Department for Business, Innovation, Science and Trade:

To ask the Secretary of State for Business, Innovation, Science and Trade, with reference to the policy paper entitled Explanatory Memorandum on a UK/EU Withdrawal Agreement or Trade And Cooperation Agreement Governance Document, COM(2025)804, whether the UK will be required to dynamically align with the EU State Aid rules of (a) Climate, Energy and Environmental Aid Guidelines and (b) Clean Industrial State Aid Framework.

The UK and EU have agreed to work towards UK participation in the EU’s Internal Electricity Market. As set out in the Common Understanding published in December 2025 following exploratory talks, this includes applying State aid rules to aid that specifically targets the electricity sector or has a particular material effect on the electricity market. The precise terms of an Electricity Agreement, including the relevant State aid rules that will apply to aid in scope of an agreement, remain subject to negotiation. The Government will not provide a running commentary on those negotiations.