It’s expected that many UK energy companies could raise their energy tariffs on average by 3-5%, if a ‘no-deal’ Brexit is to take place. Opting for a fixed term tariff could protect you from this.
How Brexit could affect UK/ EU imports and exports
Brexit has been a key subject in the UK news over the past few months. As we are seeing the decisions of parliament and the European Union (EU) develop and close over the next few months, it is key to ensure all outcomes have been ventured from a business provider perspective to ensure minimal impact is passed onto our customers.
“Average figures from 2017 show that 44% of UK exports went to the EU and 53% of all UK imports came from the EU. Implications may mean that a ‘no-deal’ Brexit may result in hard border on the island of Ireland.” – EuroNews 2019
The World Trade Organisation (WTO) are the global organisation who manage worldwide trade agreements. The WTO have a general rule that each member must grant the same market access/ to avoid bias trade – except developing countries and those that have free trade agreements. Trade experts suggest that the EU could not treat the UK differently to other states in relation to the new Brexit deal.
“The Confederation of British Industry (CBI) estimates that with no deal, 90% of the UK’s goods exports to the EU by value would face tariffs. The average tariff on UK exports to the bloc would be 4.3 percent, it calculates, while the average on imports from the EU into the UK would be around 5.7 percent. Tariffs in some sectors – for example in agriculture and food, the car industry and textiles – would be “significantly higher” – EuroNews 2019 Read more
With the strong possibility that the UK will be leaving the European Union and a decision still not being made on an UK level with MP party leaders disagreeing with Theresa May’s propositions. The UK parliament must agree and present a UK proposal to the European Union leader Donald Tusk by the 30th of June 2019. At current Brexit could have many outcomes and UK residents may want to prepare.
How it will affect energy customers
This percentage tariff increase on UK goods will ‘in most cases’ be directly transferred onto customers costings. Most UK energy companies could raise their energy tariffs on average by 3-5%, if a ‘no-deal’ Brexit is to take place and energy is outsourced. In order to protect yourself from energy price rises, we advise energy customers to be on a fixed term tariff, protecting you from susceptible raises.
The outcome of Brexit is still to be decided, however Brexit should have a minimal effect on Eversmart Energy customers. Eversmart’s electricity is 100% UK sourced and will not be directly affected from leaving the European Union. Our gas is partially imported from the European union zone. However, if you are on an agreed fixed tariff with Eversmart any tariff charge changes due to Brexit will be absorbed by us.
For further information, visit www.eversmartenergy.co.uk
Grace Bowden (Senior marketing executive)