I've just had the first bit of 'solid' Brexit news hit my inbox regarding one effect of a No Deal Brexit.
Here's the main bit of it which will be of interest to everyone.
If there is a no-deal Brexit, our involvement with the EU ETS will cease immediately. Hopefully anyone affected is already planning for this but if you need support, please don't be shy about getting in touch. EU ETS Allowances issued by the UK in 2018 have not been identified with a country code so they will still be valid for EU ETS compliance; however companies should consider their options when planning to meet 2018 obligations - in other words, have a good long think about how many allowances you want in your registry and what you might do with them after 29th March!
If we leave the EU without a deal, a new UK Carbon Emissions Tax will be introduced. Subject to State Aid approval, the exemption from indirect costs of the EU ETS currently enjoyed by energy intensive industries will be replicated for the new Emissions Tax.
One area where Brexit complications could arise is in Ireland.
We state this clearly: It is highly unlikely that any disruption will occur. However, if we leave the EU without a deal, the Single Electricity Market may not be able to continue. It is not an outcome that anyone wants so UK government, Ofgem and the Northern Ireland Utility Regulator are working together to maintain the SEM.
It's highly unlikely that most will understand any of that, if you do, well done.
However, for the layman, if the single Electricity Market does not continue, your electricity bills will take a sharp hike upwards! I would suggest if you are out of contract, fix it now!
Best case scenario is your bills stay the same and go up as usual. The other case, which is obviously worse they go up significantly.
By significantly it has been suggested 20% is in the right ball park.
This will add between £150-200 to the average domestic electricity bill.
The bit in italics is not conjecture, it is fact. The bit after, I've just put a bit of meat on the bones for you.
Hence why most businesses are procuring their energy prices now rather than waiting until after Brexit. As their hike will be felt more greatly.
The knock on effect is clear.
Higher energy costs, EVERYTHING goes up in price.
Who said a no deal Brexit was a good idea????