Europe could be handed the power to take Britain to court abroad as Ed Miliband sets the terms of a new deal on energy markets.
Britain would operate within a borderless power grid alongside 27 EU member states under the proposals – which critics have branded a ‘betrayal of Brexit‘.
An outline agreement suggests the UK would risk fines for non-compliance with state aid rules.
The agreement also states Brussels would have the ‘ultimate authority’ for disputes on how the rules are applied.
Richard Tice, Reform UK’s energy spokesman, told The Telegraph: ‘Labour is betraying Brexit again by taking us into the EU internal energy market.
‘This will tie us into more costs, levies, and rules and is the last thing the UK should do. Reform will immediately reverse this upon winning the next general election.’
Andrew Griffith, the shadow business secretary, added: ‘It’s beyond comprehension that any British prime minister could seek to put us in a position where we could be hauled in front of a foreign court and fined just to avoid doing even more damage to business through ruinously high energy costs.
‘The fetishising of net zero and Brussels bureaucrats has to end.’
‘The fetishising of net zero and Brussels bureaucrats has to end,’ the shadow business secretary said. Ed Miliband is pictured arriving at Downing Street earlier this month
The agreement also states Brussels would have the ‘ultimate authority’ for disputes on how the rules are applied (file image)
In an additional blow to post-Brexit freedoms, the UK would be subject to investigations by the EU Agency for the Cooperation of Energy Regulators (ACER) – the EU’s energy and gas market watchdog, based in Slovenia.
A Whitehall source said talks are ongoing and details of the agreement are yet to be finalised.
But experts have also warned of the dangers of embracing the EU partnership, amid fears the plans could push energy prices up as Britain becomes wedded to unrealistic energy targets.
The EU has set a goal for 42.5 per cent of its energy to come from renewables by 2030 – roughly double the UK’s current level of 22 per cent.
Around three-quarters of British energy currently comes from oil and gas – a level that has remained fairly constant for decades.
Experts also pointed out the agreement would make it yet more challenging for Mr Miliband to meet his promise of cutting household bills by £300 – meaning higher levies on businesses and households would be likely.
Mr Miliband insists rejoining the Continent’s common power market, which allows countries to trade electricity freely, will boost energy security and assist in bringing down costs.
But Ed Hezlet, of the Centre for British Progress, said readopting the EU’s Renewable Energy Directive would run the risk of it becoming a ‘technological straitjacket’ as well as short term decisions being made to meet EU energy targets.
A Cabinet Office spokesman said the Government ‘did not recognise’ the claims about potential fines and insisted the agreement could drive energy costs down and bolster energy security.
The spokesman added: ‘The outcome from exploratory talks is clear: any overall target would be purely indicative, and there would be no targets for industry sectors, transport, buildings, heating and cooling. We will not give a running commentary on ongoing talks.’
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Rejoining EU’s electricity bloc could hand Europe the power to take UK to court abroad