Brexit has been delayed, but it still seems inevitable. Consumers already expect to be paying more for many staples once the United Kingdom leaves the European Union, but certain surprises undoubtedly await them.
A recent Marketwatch report, for instance, detailed how Brexit will probably affect energy prices and supply throughout the U.K. Despite producing a fair amount of energy of its own, the U.K. is dependent enough on foreign sources that Brexit will almost certainly drive energy costs higher and could lead to even more significant problems.
Natural Gas Prices Expected to Climb
Like most of its soon-to-be-former trade-zone partners, the United Kingdom has in recent years made strides with regard to cleaning up its domestic energy production. Coal is much less of a mainstay than it used to be, and many electricity plants that burn it have been retrofitted and updated for reduced emissions.
As with so many other nations, energy providers have been busy building natural gas plants over the course of the last decade and more. Demand for natural gas within the U.K. is near record highs and seems likely to keep climbing as the country’s economy and population grow further.
Unfortunately, the U.K. currently acquires much of its natural gas from members of the European Union. When Brexit finally becomes a reality, the trade barriers that must necessarily arise will likely push natural gas costs quite a bit higher and do it almost instantly.
Some Experts Fear Energy Shortages
Higher energy costs will undoubtedly have plenty of U.K. nationals rethinking their support for Brexit, but an even more ominous specter looms. Should the U.K. be unable to secure sufficient supplies of the fossil fuels it depends on, power plants across the country could end up having trouble producing enough electricity to satisfy the country’s demands.
That would be a relatively novel experience for most U.K. residents, as outages of any significant scale have not been seen in many years. Although the country’s infrastructure is thought to be in reasonable shape, in general, a simple lack of supplies could prove quite problematic.
As with most things related to Brexit, speculation is the rule when it comes to likely future developments in the energy field. What is almost certain though, is that things will never be the same as they are today.