Brexit energy shakeout
28th June 2016 | Commercial Energy
It won’t be long before the impact of the Brexit vote is felt on the energy industry: it is likely that we will see higher fuels bills and pump prices, which will lead to higher prices across the board.
In addition, renewables and green energy research are also likely to suffer, especially under a right-wing Brexit government. The EU was responsible for issuing guidelines (waste, energy, air pollutions etc) which the UK was struggling to meet, and reluctant to take the long-term view and make the appropriate commitments.
Hinckley Point C (the proposed new nuclear power station to be built in Somerset), was due to get many components from abroad: with the devaluation of sterling, these components have increased in cost significantly. And it will be significant if the total cost of the build was estimated at £18bn.
Similarly, the fact that sterling has fallen against the dollar (the underlying currency for the gas market), means that gas will be more expensive to purchase from abroad: which has implications for electricity as well (40%+ of electricity in the UK is made from gas).
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