The UK's plan to set a minimum floor price for carbon of £16 a tonne in 2013 is likely to drive electricity prices up throughout Europe over the next few years, experts say.

"There may be some unintended side effects of this that go beyond our borders," says Alessandro Vitelli director of strategy and information at IDEACarbon in London. "If UK power prices go up because of the additional cost of carbon involved it might provide an incentive to power generators in other countries who can be