We do not know for certain but some energy companies and experts are forecasting shortages and rises in costs. As things stand, about 5% of the UK’s electricity and as much as 12% of its gas is imported from the EU, and the four power cables that connect Britain to the continent are scheduled to be joined by eight more in the near future.
As with all things Brexit, the UK is looking to completely cut its ties with the EU’s internal energy market, which could certainly weaken its influence on energy rules and result in European investment in the UK’s infrastructure.
The EU’s internal energy market is designed to remove trade barriers and promote frictionless trade between member states so leaving this arrangement could lead to supply shortages in the event of extreme weather or unplanned generation outages which in turn could lead to higher prices.
Add to that the problems that could arise should the UK fail to put in place a replacement for Euratom, the EU nuclear cooperation treaty – which could have major consequences for the UK’s nuclear industry, which the government is throwing its weight and money behind – and Brexit could lead to a major energy crisis on all fronts. what is the government saying at the moment? Well, Lord Teverson, the chair of the EU, energy and environment subcommittee, said: “There will be a divergence and we will not be integrated. What that means is energy trading becomes less efficient and retail prices will go up.”
Of course, no one really knows what the impact of Brexit will be, but therein lies the biggest problem; so join the forum and follow the BD Blog to stay informed with developments, opinion and announcements.