UK-EU Electricity Flow: How Brexit Will Have a Significant Impact
There is very little which won't be affected by Brexit in both territories, so it's only natural that Britain's exit from the European Union will also affect the policies which currently determine how energy is exchanged between the many nations of the Union and Britain.
The United Kingdom will have to Bear the Brunt of It
According to an estimation analysis conducted by Sia Partners, the total cost of consumer electricity in the United Kingdom is expected to soar, reaching a whopping €600 million per year post-Brexit. It will happen largely due to the fact that the withdrawal agreement would naturally mean the EU won't be supplying the UK with electricity at cheap prices and in abundance, as it used, to since the UK will no longer be a part of its Internal Energy Market.
Britain will have to Choose Between Two Options
Sia Partners estimate that the current situation is hinting at energy deals for the UK, which would be similar to what Switzerland has at the moment. If that happens and the UK is removed from the electricity grids of its neighbouring nations, the loss would be felt across the commercial and consumer electricity markets in not just the UK, but France, Belgium, Ireland, and the Netherlands as well.
The loss through increased costs is estimated to be around €500 million - €1 billion, with the United Kingdom bearing 60% of the total!
France will also be hit hard with a loss of roughly 16%, with Belgium, Ireland, and the Netherlands sharing about 8% of the expenses each.
The other option for Britain would be to remain connected to the grids controlled by the EU, as well as remaining a part of the future electricity projects which the Union has in store, but lose all its decision-making power in EU energy policy-making. This would be a deal similar to what Norway has with the European Union.
Although taking the second option is more profitable by far, the loss of decision-making power in matters related to interconnected energy flow may not sit well with Britain.
Is Now a Good Time to Switch Your Commercial Electricity Provider?
Brexit can happen at any time now, but that shouldn't stop you from comparing the commercial electricity prices offered currently by the various energy suppliers within the UK.
While the price of electricity will probably change after the Brexit deal finally goes through, it is quite unlikely that the actual difference in rates between the internal suppliers will change drastically. If anything, comparing the prices now might actually give you a better idea of what to expect in the near future.
The exact date has once again been delayed, till October 31st, 2019, but Brexit can happen even before that date, provided that the key members of the UK and EU administration manage to ratify the withdrawal agreement before the date arrives. As things stand now, the changes in the electricity exchange policies will also be put into effect from the very next day onwards, which makes preparation ahead of time a key element to consider for industrial leaders in the UK.