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Fear arises as Brexit impact on power sector still unclear

Fear arises as Brexit impact on power sector still unclear

Mubasher: The UK’s power sector is drowning in uncertainty, as investors anticipating risks and impacts associated with the beginning of the post-Brexit era.

The risks that could follow Brexit include higher prices for imported machinery and equipment, a shortfall in skilled and unskilled labour, and decline in investor confidence in the British economy, practice head of power at GlobalData, Ankit Mathur, said.

“The UK power industry’s growth trajectory has already derailed since the announcement of the UK’s exit from the EU. After three Brexit extensions, the power sector was haunted with the uncertainties and risks of further erosion of market attractiveness,” Mathur commented.

Brexit’s impact on electricity prices is still unclear, but energy bills are likely to increase due to hike in transportation costs triggered by tariffs set by the EU, he noted.

Mathur added: “The elusive future of carbon pricing, cross-border energy flows, negative investor sentiments and the potential for new energy tariffs are all among the issues under consideration that will affect the future direction of UK power market.”