There is immense uncertainty around the effect of Brexit on different markets.
This makes it a stressful time for business owners looking to make the best choices in preparation for 29 March.
Amongst these is the proposition that energy prices are set to soar – a reality which will affect the daily running and bottom line of businesses around the country. Energy and utilities specialists, Smarter Business, give us the chief considerations to keep in mind around your business’s energy contracts in the lead-up to Brexit.
Why will energy prices rise?
The UK sources much of its energy supply from the EU. The free trade and decision-making power we currently enjoy within the EU could, therefore, be disrupted after 29 March, with a cost implication for consumers. Further, should the UK have insufficient energy, this could result in outages which, apart from its effect on the economy and market, could have dire consequences in terms of lost income and production, as well as the business costs associated with operational downtime.
The cost of risk
Amidst predictions of shortages, carbon pricing, and cross-border electricity and gas trade, market uncertainty and risk are contributing to an increased likelihood of increased bills for consumers.
The prevailing uncertainty could also contribute to a decline in European investment in energy infrastructure. Additionally, reduced trading efficiency could see a rise in the cost of energy for domestic and commercial customers. The disruption of supply could also provide a major setback to Government’s climate change plans.
What can your business do to prepare for Brexit?
Taking a robust approach to your business’s gas and energy in the lead-up to Brexit could have far-reaching consequences for your bottom line. As in any time of market volatility, suppliers are as prepared as they can be for every eventuality around Brexit – and you should be too.
- Switch– Conduct a thorough investigation into the energy market and shop for the best tariffs for your business and your pocket. This is always a good idea, but this is especially the case now, affording you the chance to fix tariffs and make the best deals for your business.
- Strategise – Switching is not enough. The potential increase in energy bills is the catalyst every business should use to implement an energy strategy to improve efficiencies and drive down costs as much as possible. How do you do this? In-house monitoring of energy usage and a shift in behaviour is a great first start. To optimise, combine clever technology and expert advice to give real time metrics and suggestions.
Contact Smarter Business today to discuss the options around your business energy portfolio and to strategise around energy best practice for your business – no matter what the future holds.