Brexit: No-deal Could End Up Costing Brits An Extra £2.2bn In the Energy Bill

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Brexit: No-deal Could End Up Costing Brits An Extra £2.2bn In the Energy Bill
Brexit: No-deal Could End Up Costing Brits An Extra £2.2bn In the Energy Bill

Brexit has undeniably had a negative impact on the household energy bills with research finding that a no-deal Brexit could cost the UK £2.2 billion every year as the network connecting the UK’s electricity supply with the EU would no longer function as effectively.

The deadline approaches and all scenarios are still possible. Brexit uncertainty has reached top levels with the negotiations on a stalemate: the EU has ruled out any chance of renegotiate the Irish backstop while the UK parliament still argues what kind of Brexit they are seeking, two years after the Referendum took place. Recently, we have seen how the pound slipped from its twelve month high against the euro. This announcement is the third occasion where, on the eve of an announcement, Theresa May’s Brexit negotiations have caused a dramatic shift in the value of the pound and, with experts unable to predict which way the pound’s value will sway, currency buyers and holidaymakers have been left reeling.

In the meanwhile, from the energy supply perspective, contingency plans have started to take shape from businesses and the government alike to deal with any outcome, though they all share the same principle, they will be costly and, mostly, they will be undesired extreme measures. Even more worryingly is the fact that the Brexit bill will utterly fall over the citizens’ shoulders.

Jane Lucy, CEO and founder of Labrador is of the opinion:  “It is undeniable that Brexit has consumed the news agenda for the past two years. The political landscape has been in a consistent state of unrest as we have tried to assess the impact that our exit will have on every industry throughout the UK. However, whilst the focus has been on the effect on large industries, we have somewhat neglected the repercussions that leaving the EU will have on our personal finances. Energy suppliers and regulators need to be forthright to their customers now more than ever about the impact that Brexit will have on energy bills.”

Due to the increasing realty of a no-deal Brexit, it is imperative to assess the cost that exit from the EU will have on the bills. Currently the EU supplies 5% of the UK’s electricity and 12% of gas, upon the exit, Brexit is set to further drive up energy bills due to increased tariffs on importing gas and electricity across the Channel.

“The EU energy market is one of the most integrated markets across the continent and it is undeniable that the public deserves assurances as to the impact that Brexit will pose. Whilst the end result is still in debate, it is imperative that we start to consider how we can save money on our energy bills. At The Labrador, we use innovative technology to ensure that our customers are always on the cheapest tariffs, saving our customers up to £537 per year,” concluded Jane Lucy.

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Hernaldo Turrillo is a writer and author specialised in innovation, AI, DLT, SMEs, trading, investing and new trends in technology and business. He has been working for ztudium group since 2017. He is the editor of openbusinesscouncil.org, tradersdna.com, hedgethink.com, and writes regularly for intelligenthq.com, socialmediacouncil.eu. Hernaldo was born in Spain and finally settled in London, United Kingdom, after a few years of personal growth. Hernaldo finished his Journalism bachelor degree in the University of Seville, Spain, and began working as reporter in the newspaper, Europa Sur, writing about Politics and Society. He also worked as community manager and marketing advisor in Los Barrios, Spain. Innovation, technology, politics and economy are his main interests, with special focus on new trends and ethical projects. He enjoys finding himself getting lost in words, explaining what he understands from the world and helping others. Besides a journalist, he is also a thinker and proactive in digital transformation strategies. Knowledge and ideas have no limits.