Brexit could increase energy costs by £500mn, study says
A report by Vivid Economics has warned that a vote to leave the EU is “very likely” to have a negative impact on UK energy systems. Published on Thursday 24 March, the study, commissioned by National Grid, said that cost increases would be most significant if Brexit resulted in the UK leaving the internal energy market, though even if this were not the case the UK could still be expected to lose influence over policy development. The report suggested that exclusion from market coupling could, by the 2020s, raise costs by around £160mn, as could the possibility that fewer interconnectors would be developed. Further costs would come from the UK’s exclusion from cross-border balancing services.