With Brexit on the horizon it is really interesting to see the arguments for and against leaving the EU and what impact this could have on the Utility industry. Here are some of the pros and cons to help you decide what is best for the UK.
PROS
- Best chance to remove ourselves from relationships that do not benefit the UK energy Industry.
- After exit, the UK would be able to free itself from EU’s renewable energy commitments and create a freer economic market.
- Campaigners believe the exit will dramatically reduce energy costs. Giving the UK the ability to discard damaging laws that hold back energy production and to dramatically decrease the price of energy, offering better opportunities for the UK energy sector.
- The UK would be able to continue reducing VAT on renewable and energy saving materials, which unfortunately last year was ruled by the European Court of Justice as not consistent with EU Law. VAT is due to go from its current level of 5% back up to 20% – the date of which will be decided after the EU referendum.
CONS
- The UK have had a huge influence in developing EU Energy Policy, often leading the way. Would it be a waste of many years work to walk away from our own policies?
- Leaving the EU means we would leave the two EU-wide regulatory bodies dealing with energy markets – CEER and ACER. If we are forced to drop out of these two bodies, our only option is to join the Energy Community – a fringe organisation populated by countries wanting to join the EU – clearly a backwards step.
- Brexit could be devastating for the Renewable Industry. For it to reach its full potential, it needs to have a strong international network that pulls together to make it a success.
- With the industry already struggling to fill the skills gap, Brexit could limit the talent pool to help bridge this gap for the industry.
- European frameworks and current negotiations on the water and waste water sectors would immediately be thrown into uncertainty should the UK vote to leave.
