Archive for June, 2016

A leave vote in the UK’s looming EU referendum could lead to two years of energy policy – and therefore price – uncertainty according to a new report by the UK Energy Research Centre.

The UKERC report states that if Brexit results in the UK having an isolated energy system rather than one integrated with that of the European system prices would likely rise, while reduced influence on Europe’s energy markets could also have an impact.

Another report, this time by the Chatham House think tank, also highlighted the positives of remaining within the EU, including benefiting from an integrated energy market, influencing its direction and reducing the policy and investment uncertainty that would come with an exit.

Not surprisingly, the leave campaign maintains that leaving the EU would provide the freedom to keep bills down, meet climate change targets and keep the lights on by no longer needing to comply with EU directives.

However, with the UK increasingly reliant on imported energy from and through the EU, energy prices will still be influenced by factors outside the control of the UK government, while the UK may also have to comply with EU market, environmental and governance rules to benefit from continued inter-connectedness, rules over which it would have no influence after an exit.

 

 

 

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