Brexit impact on power sector remains elusive as UK reaches final phase countdown, says GlobalData
The UK’s power industry continues to remain uncertain by unknown risks and impacts of the post-Brexit scenario. Ankit Mathur, Practice Head of Power at GlobalData, provides his view on the potential impact:
“The looming Brexit deadlock has created potential risks of higher prices for imported machinery and equipment, a shortfall in skilled and unskilled labor (given the current reliance on migrant labor from the EU), and also the ripple effects of any disruption in economic activity and decline in investor confidence.
“The UK power industry’s growth trajectory has already derailed since the announcement of the UK’s exit from the EU. After three Brexit extensions, the power sector was haunted with the uncertainties and risks of further erosion of market attractiveness.
“Although the impact of Brexit on electricity prices remains undetermined, energy bills are likely to go up as transportation costs increase due to tariffs set by the EU.
"The energy sector is varied, and the impact of Brexit will diverge for different players by technology across the industry value chain depending on market focus, energy products traded and the cost base.”
“The elusive future of carbon pricing, cross-border energy flows, negative investor sentiments and the potential for new energy tariffs are all among the issues under consideration that will affect the future direction of UK power market.”