In the utilities sector those in favour of Brexit have argued it would leave the UK free to set its own course on energy and climate change policy, as well as environmental and water legislation, unhindered by EU directives and regulations.
Appearing before the Energy and Climate Change Committee in May, energy analyst for the Centre for Policy Studies Tony Lodge said leaving the union would enable to Britain to remove “regressive, draconian and corrosive EU directives”, which he said had “forced the problems that we are now facing”.
He said the UK could continue to tackle climate change and integrate its energy system with others in Europe without being a member.
Writing in Utility Week last week energy minister Andrea Leadsom said remaining part of an EU “energy union” would also jeopardise Britain’s energy security.
She said the EU’s proposed gas solidarity principle would force the UK to “switch off our own small businesses here at home and to hand our gas over” in the case of a supply shortage elsewhere.
The EU exit, which could take up to two years to negotiate, could see changes to the drinking water standards and bathing water standards, both of which are currently set by legislation from Brussels.
Meanwhile the argument for remain mainly focused on the potential benefits of a single energy market as well as the EU’s extensive efforts to tackle climate change.
Most notably energy secretary Amber Rudd claimed in a speech in March that leaving the EU and not being part of the single energy market could cost the UK’s energy system £500 million each year. The claim was repeated last week by energy undersecretary Lord Bourne, also writing in Utility Week.
Appearing before the ECCC alongside Lodge, UCL professor Michael Grubb said the vote was a matter of “independence versus the economic gains of cooperation,” adding that he thought Britain would be “better off in the single energy market”.
On the issue of climate change, the Society for the Environment published a survey which found energy and climate change legislation would be among the “most missed” EU laws in the case of Brexit.
On international currency markets the outcome of the referendum led to a collapse in the value of the pound. After trading at almost $1.50 yesterday afternooon it has since fallen to below $1.35, its lowest level in three decades.