What could a ‘No Deal’ Brexit mean for your company’s energy costs.
Brexit Secretary Dominic Raab has set out what he called “practical and proportionate” advice in case the UK leaves the EU with no deal.
Energy bills across the UK are rising at their fastest rate in more than three years. They could rise even faster if there is a ‘No Deal Brexit’. The reason is that if we leave the EU with no deal we will also be forced to leave The European Atomic Energy Community (also known as Euratom) which was established in 1957 and is a means of developing, distributing and selling nuclear energy.
The UK government has already accepted that it will have to leave Euratom when it leaves the EU. But the Nuclear Industry Association, a trade body, is desperate to retain the status quo. It is calling for a transition arrangement, or even continued membership. If the UK jumps ship on 30 March 2019, then the 7 nuclear plants may have to close. They account for 21% of the country’s electricity and could lead to severe disruption and possibly even faster price rises.
MPs on the Business, Energy and Industrial Strategy committee said it urged the government to seek to delay the UK’s departure from Euratom – else risk “disruptions to trade and threats to power supplies”
The UK currently produces enough gas to meet almost half of its needs (43%) from the North Sea and the East Irish Sea. We also import 44% of the gas we use via pipelines from Europe and Norway.
Renewables provided nearly 30% of UK electricity supply; it would not be able to compensate for the loss of electricity from nuclear power. Importing energy from Europe without a trade deal will most probably increase the price of energy.
So what should my business do?
Firstly look at you current deal and check when the contact expires. You can start looking to switch 6 months prior to the end date. NDM energy can help you find the best deal to protect your business from energy hikes post Brexit. Call us now on 0333 014 7770 or email email@example.com and our team of experts will advise you on the options available.
Even if your current contract is not due to expire we may still be able to help. We are offering free energy efficiency assessments which could lead to grants for SMEs who wish to use their energy more efficiently, reduce costs and improve environmental credentials.