Energy prices are expected to soar after the UK’s departure from the European Union, an energy switching service has warned.
Make It Cheaper, a business energy switching service, says with the 29 March, 2019 deadline fast approaching UK business owners should switch and lock prices in “for as long as possible”.
The company said there are “mounting concerns” that energy prices will increase following Brexit, if the transition is not managed well.
It also cited recent concerns from industry trade association Energy UK that uncertainty in the energy market, particularly around plans for a future carbon-pricing mechanism and the cross-boarder trade of electricity and gas are concerned, is creating “risk and cost pressure” that will increase bills for domestic consumers.
Jon Elliott, CEO at Make It Cheaper, said: “Brexit is of course a hot topic for any business in the UK, and means uncertainty around all business costs. Business energy is no different.
“Energy UK’s report highlights some of the causes of these likely rises and only goes to strengthen the case for switching soon for longer fixed term tariffs, securing rates for your business before they become too volatile.”
In a blog titled Why your business will pay more for energy after Brexit, the company pointed to UK gas supply – around 50 per cent of which comes from the continent.
It said if the UK leaves the single market and begins trading outside of the EU’s Internal Energy Market, frictionless trade “will be put at risk”, meaning consumers could be forced to pay more.
The company also raised concerns about the costs of imported energy rising, which may be put in jeopardy in the event of a bad deal.
Today’s announcement from Make It Cheaper coincides with the cabinet meeting at Downing Street to discuss the 500-page withdrawal agreement agreed between British and EU negotiators.
Earlier today it was revealed that EU and UK energy chiefs have signed a letter to Commission chief negotiator Barnier and Dominic Raab, who is secretary of state for Exiting the EU, calling for a political declaration setting out the future relationship to directly address energy and climate change as key areas.