The deadline for the United Kingdom UK) to leave the European Union (EU) has recently passed. This process, commonly known as Brexit, will have several impacts on individuals and businesses located in the UK. The most significant impact is predicted to be the cost of energy.
The UK is dependent on other countries in the EU for electricity and gas. Pricing has remained reasonable due to agreements among the countries in the Union. Those agreements will not be in effect when the exit terms are finalized. Trade regulations and new agreements will need to be negotiated.
The UK will be more dependent on imported energy to continue to meet demands and avoid power outages. Businesses will notice the increases most because the bills will be considerably higher than increases in households. Other costs will rise as well but energy will be where the changes will be noticed.
Business owners do have the option of negotiating energy pricing with specific companies before costs rise very high. The window for this type of action is a small one, so owners must act quickly. A broker can help with that process and speak on the owner’s behalf. An independent contract will keep pricing under control to a degree.
Other Impacts on Businesses
Once new regulations are imposed, supply chains and work forces will be in jeopardy. Costs will increase based on supply and demand raising overhead for businesses. These increases are passed onto customers in the form of higher prices.
Customers can decide to support local businesses or shop online for lower pricing. It is important to note that consumers will feel the impact of rising energy costs as well and will need to find ways to stretch their budgets. Whether or not small businesses will survive these changes remains to be seen.
A Waiting Game
Agreements and terms have not yet been reached between the UK and the EU. The process has begun but going back and forth until both entities are satisfied can take some time. Social and political views are at play here, so the entire situation is a waiting game for the public.