Brits could face higher energy bills as a result of the UK’s new “reset” deal with the EU, Sir Keir Starmer has been warned. It is thought that the new understanding will limit Britain’s ability to change its Net Zero rules as the Prime Minister has agreed to be looped into the continent’s carbon market. This ties the UK to the EU’s climate laws, including increasing pollution charges, ensuring any future Government will find it harder to get around green targets without triggering trade punishments, according to The Sun.

The Conservative Shadow Energy Secretary Andrew Bowie said the link-up “leaves the door wide open for higher energy bills and new taxes on transport”. He added on X: “Emissions Trading Scheme Alignment agreement will see the UK sign up to a cap, and therefore carbon price, AT LEAST as high as the EU’s (increasing costs to UK industry) …with an “appropriate financial contribution” from the UK in return…”

Ex-Brexit negotiator Lord Frost wrote online: “Want to weaken our Net Zero commitments? In future, only if the EU says so.”

An energy insider has claimed that gas power stations will now face higher carbon costs, hitting UK households.

It has also been reported that carbon prices in the UK surged by 6% after Sir Keir announced the deal, and it is believed that they could rise further to match those in Europe.

At present, firms pay around £58 a ton compared with just £51 in Britain.

Analysts at the consultancy Cornwall Insight have predicted that the cost for a household to use a typical amount of gas and electricity will decrease by £129 in July as Ofgem’s price cap changes.

Yesterday, the Prime Minister claimed the new deal would result in “lower food prices at the checkout” by making trade with the EU cheaper and easier and would drive down energy bills by co-operating with Brussels.

The President of the EU Commission, Ursula von der Leyen, said: “We are turning a page. We are opening a new chapter in our unique relationship.”

She also insisted that the UK’s decision to sign the agreement, which will involve closely following Brussels’ rules, was an expression of British sovereignty.

A Department for Energy Security and Net Zero spokesman told The Sun: “Forty-four different business organisations including the CBI, Make UK, and UK Steel, all backed our approach last month as crucial to preventing businesses relocating overseas and reducing costs for both UK and EU consumers.”