It seems to have been going on forever, especially if you operate a business in the UK. There are more unknowns than knowns when it comes to Brexit and businesses can be forgiven for thinking the political class has let them down.
Your company or organisation may well have a lot to juggle when it comes to Brexit but it’s worth seriously thinking about the potential impact it’s going to have on your energy supply.
The first things businesses look for when organising their utilities is competitive pricing and reliability. The lower you can keep those overheads and the higher the productivity, of course, the better you are likely to do, Brexit or no Brexit.
Your Energy and the IEM
The UK is currently part of the Internal Energy Market or IEM which basically goes a long way to ensure that we don’t end up spending too much for our utilities. It’s a regulatory body and allows markets to work together for the benefit of all.
It ensures that countries can trade energy when they want and with little effort and if there’s a problem with supply from one area, it can be boosted from others without any problems. The tax and pricing of our utilities from abroad are also reasonably well controlled by the IEM.
This all means, however, those on the inside get benefits while those on the outside don’t.
The UK Gets Most of Its Gas from Abroad
Before you think fracking is going to solve all our problems, or that we’re going to switch to our own homegrown nuclear, solar and wind, the truth is that the UK gets most of its gas currently from the EU, including countries such as Norway and France.
If we end up falling out of the EU with no trade deal, this is obviously going to put future energy supplies at some risk. It could even mean power shortages and much higher prices, at least in the short term.
If we don’t have a trade deal with the EU and things like the selling and buying of gas and electricity haven’t been settled, we wouldn’t have access to the IEM. This, in turn, could mean that the UK would have to make individual deals and arrangements with different suppliers.
We currently have a lot of what are called interconnectors which basically allow the seamless movement of energy across borders. The good news is that the UK has been building these interconnectors or pipelines with other, non-EU suppliers and we’re not likely to be cut off by those that already exist even in the event of a no deal Brexit.
What’s the Bottom Line?
While nothing is certain, you should expect the power supply to be maintained during any transition period. In a worst-case scenario, however, there may well be trouble with power shortages that could affect all sorts of businesses across the UK.
It’s important to work with a commercial energy broker that understands what the risks are and can work with your business to ensure that there is as little disruption to your energy supply as possible.