The UK’s vote to the leave to the European Union is likely to push up energy bills, according to the chair of the Energy and Climate Change select committee.
Angus MacNeil told Utility Week that, with the pound plummeting and Standard and Poor’s saying the UK’s AAA credit rating is “untenable”, there will be “a premium for investment”.
“All we can hope is things settle in a week,” he said. “The people looking like taking over the helm – Johnson and Farage – do not encourage much confidence at all.”
MacNeil said the big utilities are international companies, which “rely on people from many other countries”. He said the vote for Brexit has made the UK look “small-minded and distrustful of others” and asked: “Do you want to go to a country with that attitude?”
“You can imagine a higher cost of energy as we continue along that path,” he concluded. MacNeil also said Scotland “will lead England” on energy policy post-Brexit.
Director of E3G Jonanthan Gaventa has told Utility Week Ofgem should be given a special role to ensure regulatory compatibility between the UK and the EU following the vote.
Read more reaction from the industry here and here.