No-one knows how Brexit will affect businesses in the UK, but there are some worrying signs of trouble ahead, as some big players are contemplating relocation, and the price of everything seems to be on the rise.
With many businesses in the UK already operating on tight margins, any slight increase in overheads could be enough to see them slip into financial difficulties.
The good news is that the UK’s energy policy is largely determined at domestic level, meaning withdrawal from the EU might not have a massive impact.
A large part of business energy bills go towards green energy schemes, and it’s unlikely these will be scrapped when the UK leaves the EU, but the uncertainty could actually lead to an increase in costs.
The UK has an extensive program of nuclear, renewables and energy-efficiency to help with renewable energy, but there are fears that a post-Brexit UK will struggle to attract the investors needed for these low-carbon initiatives. Investors will expect higher returns to compensate them for the financial risk, and the weakening exchange rate isn’t helping, as it pushes up the costs of imported equipment and services.
The signs are beginning to show; carnage on the stock markets at home and abroad, the rising oil price which some analysts believing it could hit $100/barrel by the end of the year and then add the uncertainty around Brexit with a “Deal or No Deal” theme makes the outlook bleak.
So overall, it’s likely that Brexit will push up the cost of commercial energy contracts, and it could all but put an end to competition as the Big Six energy providers are much better equipped to deal with withdrawal than smaller suppliers.
We are not part of the scare mongering culture and nor do we want anybody to panic after reading this. Our advice to all companies is to seek expert guidance in creating an energy procurement strategy right for your business.
If you have energy and water contracts due for renewal within the next three to six months, do not wait! It would be wise to take action now, whether you use a reputable broker or secure contracts directly, do not leave it, as it may end up costing you more than you anticipated.
If you are interested in protecting your business from such uncertainty and securing the best energy contracts
call our expert team at SK Energy on 01933 448622 or email email@example.com for a free business energy healthcheck where we guarantee to beat your renewal Quote.
For more information visit http://www.skenergy.co.uk