A ‘no deal’ Brexit will likely result in inflated energy bills for homeowners next winter, warn experts from smart central heating provider, Genius Hub.
According to Alasdair Woodbridge, CEO at Genius Hub, uncertainty surrounding the strength of the pound is just one of many reasons that could see some people struggle to keep their homes warm next winter.
Other factors, irrespective of currency fluctuations, include:
Increased transportation and importation costs
Ambiguity surrounding green energy initiative targets
Lack of investment in Britain’s energy infrastructure from the EU
Whether Britain will remain in the EU’s Emissions Trading Scheme after 2020
Energy industry experts have also suggested that Britain’s reliance and investment on pipelines between other countries could impact energy bills and the fight against climate change. The four cables connecting UK, France, Ireland and the Netherlands help to stabilise costs and guarantee energy supplies when wind and solar power is insufficient. A no deal Brexit could disrupt the free flow of energy, by imposing tariffs on the connectors.
Alasdair Woodbridge says:
“There is so much more to consider, in addition to the strength of the pound, that could negatively impact energy bills for homeowners, following a no deal Brexit.
The UK receives approximately €2.5 billion a year from the EU, in the form of energy grants and loans. If this funding is reduced or cut off entirely, the cost will undoubtedly be factored into consumers’ tariffs. Additionally, if the value of the pound falls, the cost of importing equipment and machinery to improve our infrastructure will also be affected. There are so many different facets to Brexit, a considerable increase in the cost of energy bills can’t be ruled out.
My concern is that the people who need it the most in the winter months may struggle to make ends meet. While for some, heating is more of a comfort factor, for the elderly or people with illnesses and disabilities, it can be crucial to their health.”