Brexit and Your Energy Bills

It is fair to say that following the EU referendum just about everything has been in turmoil, and energy prices, which are so often volatile, have not escaped this uncertainty.

In fact following the country’s decision to Brexit our energy prices are nearing a nine-month high as various doom-laden scenarios are mooted. The fact that there was a uneasiness about future supply long before we Brexited has only added to the woe and to an increase in prices.

Market experts at ICIS said the price of gas had climbed 29pc over the second quarter while wholesale electricity prices rose 25pc.

“UK energy prices were boosted early in the quarter with supply concerns for both gas and power, and rose further towards the end of the quarter with shifting sentiment over the EU referendum,” according to ICIS’ latest report.

“The Brexit result then pushed prices towards nine-month highs, due to the collapse in value of the pound, which boosted demand for British energy from traders dealing in euros,” the report added.

Whereas other areas of the economy, such as shares and currency, have shown a slight bouncebackability, not so the energy market, and there is little sign that prices will reduce back to where they were before the talk of the referendum began.

 

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