Daily Management Review

Brexit will lead to higher energy prices in Britain


The decision by the UK to withdraw from the European Union could lead to higher energy prices and a shortage of energy resources if the country fails to achieve acceptable conditions for Brexit, the report of the parliamentary committee of the upper house of parliament says.

Duncan Hull via flickr
Duncan Hull via flickr
Britain imports about 5-6% of its electricity via transmission lines with France, Holland and Ireland, and about 40% of gas supplies to the country are going via Norwegian and European pipelines.

The report published by the Interparty House of Lords says that energy trade outside Europe's energy market after Brexit will be less effective than current arrangements.

"This creates the potential for higher electricity bills, and exit from the EU may lead to a shortage of supplies (electricity) in the event of extreme weather or unscheduled shutdowns in production," the document says.

The report also notes that the government should conduct a full assessment of the impact of the exit from the European energy market and outline plans for how the authorities expect to cope with a serious supply shortage.

The EU has a principle of solidarity in the gas sector, which means that in the event of a serious crisis, member states are expected to help each other maintain the level of reserves.

The role of Britain in this arrangement, when the country leaves the European Union in March 2019, is now unclear.

According to recent studies, more than half of the British (51%) would have retained membership in the European Union, while 41% of respondents favored withdrawing from the bloc, which almost completely contradicts the results of the 2016 vote.

The BMG held a survey of 1,400 people for The Independent, at a time when Britain moved to the second phase of negotiations on withdrawal from the EU, which will focus on trade.

As noted in the publication, the prevalence of opinions for EU membership turned out to be the strongest in any polls from voting in June 2016.

In a referendum in 2016, 52% of the British voted to withdraw from the EU, and 48% voted to stay in the union.

source: independent.co.uk