Brexit – what does it mean for business energy prices?
Whatever type of Brexit this country gets, it seems the much-discussed EU departure will happen in some guise. And this could impact heavily on business energy rates. Despite this, businesses across the UK are still unsure of what the implications will be.
Business energy uncertainty
The uncertainty and confusion that currently exists for many businesses has not been allayed by the recent to-ing and fro-ing. Brexit; Backstop; Brussels …. Lots of buzz words but very little clarity, and the threat of No Deal is very real. As we know, businesses tend to like stability and certainty – whatever size.
If the signs of the lack of progress up until now are anything to go by, we are in for a rocky ride through implementation. Brexit could impact on business energy prices in many ways. There will be concerns over supply, over issues around productivity and over costs for end users.
Higher energy costs
One of the benefits of a common bloc of market activity and relationships was that supply and demand could be managed. This may no longer be the case for the UK. Several major business energy suppliers are EU-owned companies and the UK could well become more peripheral to EU energy markets. This could make it more difficult accessing energy, which could easily impact on higher energy costs for many UK businesses. Lots of UK businesses are already finding their energy bills too high. This market is unregulated and there are some rather unscrupulous brokers that could be making up to 40% commission on a fair price.
In addition we know that 10% of UK business are already on deemed rates, paying prices up to 80% more than a pre-agreed, contracted energy tariff. And in its wider context, the CMA has stated that UK businesses are paying on energy £500m more than what they could be if they had secured contracted rates. So, the challenges businesses face in procuring a fair price are already clear without Brexit having even happened!
Business energy pricing
Others have argued there are positives to be had though. Lower sterling could lead to increased investment. A leaner, meaner business landscape may emerge, meaning potential new production capacity. There’s the possibility of greater competition on business energy pricing too. We may well see the expansion of domestic supply – micro suppliers and green / clean providers?
Shop around for best energy deal
All this adds to the argument that shopping around early for the best energy deal is vital now more than ever. Try to secure a good energy tariff now to ride through post-Brexit landscape. If you need help or advise on how to go about that process get in touch on 0808 1642222. One of our helpful troo guides will discuss your options with you. Don’t wait for Brexit – beat it and get the best deal now.
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