At the time of writing, the UK is currently set to leave the European Union this Friday 12th April 2019 (unless there is a further extension). However, the exact Brexit path the UK will take is still up in the air. A deal with the EU could still be agreed, although a no deal Brexit is a realistic probability.
While the UK government are still at loggerheads, the UK oil and gas industry believe a deal would be preferential:
Oil & Gas UK (OGUK) stakeholder and communications director Gareth Wynn said: “We continue to make the case that a deal outcome is preferable. Any delays to the process should be used constructively to seek a deal outcome which delivers the priorities identified by our industry. A deal outcome is in the best interests of this industry, which is critical for security of energy supply and supports hundreds of thousands of skilled jobs right across the UK.”
If come Friday, a no deal occurs, the UK would no longer be connected to European energy markets. This means the UK market would be split between the EPEX SPOT and Nord Pool hubs.
European Federation of Energy Traders (EFET) stated, “Although there is no legal requirement obliging power exchanges to maintain a single UK price, we call on EPEX SPOT and Nord Pool to find practical arrangements to re-establish a single price for the UK bidding zone. Maintaining a single reference price is crucial for ensuring the efficient functioning of the wholesale market in power inside Britain, in particular with regard to price discovery and efficient hedging.”
According to Which?, rising energy costs are one of the biggest consumer concerns regarding Brexit. Over half of people surveyed (54%) think their energy bills will change, or have changed already, as a result of Brexit.
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