With many ties to the EU, how the utility sector will be affected remains uncertain.
For the electricity sector, it is uncertain whether the target set by the EU to ensure that 15 per cent of final energy consumption comes from renewable sources will be maintained or if something similar will be put in place instead. Either way, it is likely that wholesale prices will be forced to go up due to the significant amount of work that will need to take place within the generation and distribution segments in the near future for utilities to work in line with the target.
Exclusion from the European Union’s internal energy market could result in costs rising by £500 million a year for domestic consumers due, in part to disruption to electricity supply.
Similarly, for the gas industry, it is expected that there will be some disruption to supply or changes in cost as the UK is increasingly dependent on imported gas.
Find out more about how to plan for Brexit.
IBISWorld Industry Report D35.140, Electricity Supply in the UK July 2016, 22nd August 2017, Cristiana DumitruIBISWorld Industry Report D35.230, Gas Supply in the UK October 2016, 22nd August 2017, Cristiana Dumitru