After the UK voted to leave the EU in June 2016, much uncertainty remains as to the type of deal (or no-deal) that the UK government will secure when Britain finally leaves the EU on 29th March 2019. And this uncertainty is certainly inclusive of the energy market as, according to power firms, Brexit could drive up the cost of your energy bills.
2018 saw two significant price rises alone, which were both caused by the rising costs of wholesale gas and electricity. Any further increases as a result of a no-deal Brexit is likely to have a significant impact on British homes and businesses.
Should the UK leave with no-deal, they’d be obliged to conform to WTO trading legislation. This could have significant permutations on energy bills, as trade barriers threaten to increase the cost of gas and electricity across the border. The benefit of free movements of goods and services could be diminished, adding hundreds of pounds to energy bills across the UK.
According to The Guardian, “in a letter to Jean-Claude Juncker, the European commission president, and UK prime minister Theresa May, they said imposing costs on the use of interconnectors – electricity cables and gas pipelines between the UK and its European neighbours – would hit consumers and set back the battle against global warming.
The free flow of energy across interconnectors was necessary to keep “a level playing field that keeps costs down and ensures decarbonisation and security of supply,” the groups said. Interconnectors currently account for 6% of British power supplies, but that share is soon expected to rise to a fifth.”
If you’re looking to hear of ways to counteract these potential price hikes, then get in touch now for energy efficiency solutions, which give you control of your energy costs and reduce your carbon footprint.
