Yes, we are going to have to talk about that subject that doesn’t seem to be out of the news, Brexit. A lot of people are concerned about the cost of utility prices when Brexit does happen, and businesses/ business owners feel the exact same.
We have assured by the government and more importantly National Grid that we need not worry. National Grid has assured us that when Brexit does finally happen then we will still be able to keep our lights on in our offices and working buildings. The UK has enough supply to keep business going for a good few years, in which time plans would be made with Europe to ensure our gas and electric supplies continue. In total 12% of the UK’s gas and 5% of the electricity comes from the EU.
However, there is a negative from Brexit that will have an impact on businesses and one that should be considered at this stage, price. National Grid even though they have assured us that supply will continue, they have also told us at the same time that we should expect price rises, some of which could be much higher than expected. They expect wholesale gas and electricity prices to be higher in the UK than in Europe in early 2020. In addition, because the demand for gas and electricity is increasing year on year this is driving up the premium at the same time.
The UK must ensure that new trade deals are put into place to continue to use these interconnectors which transfer the gas and electricity supplies from the EU. These trade deals are essential to keep price increases to a minimum and something the government is working hard on doing.
Edan Power continues to keep an eye on developments with Brexit especially in relation to price rises and changes to the utility market. It’s important for us to keep our clients updated and ensure they continue to get the best deals. We want to try and protect our clients from impacts that Brexit may have and ensure that they are prepared and ready to deal with any impact it may have. If you are concerned about the impact that Brexit may have on your business, get in touch with us at Edan Power.