Worst Case Brexit Scenario? Cue the Government Yellowhammer Report

By 01 October 2019 General

A document published by the government and forced to be disclosed to the public has been highlighted in the news a lot of late. A five-page report which summarises what would happen to Britain’s business infrastructure in a worse case but plausible scenario.

As a report, in general, it highlights life in the UK overall, but what impact does that have on energy and utilities specifically?

The report highlighted the key aspects which would affect our industry…

  • What is it?
    Operation Yellowhammer is a contingency plan in the event of a no-deal Brexit. The Yellowhammer Report was originally a secret report created by the Government, summarising a plausible worst-case scenario. 5 pages in length covering business in England overall.
  • Top-level
    Brexit and what it looks like, the ins and outs, is still unclear. Therefore, it’s difficult for any business to fully prepare, the undetermined and unrequited manner, means that preparation can be near on impossible for some businesses.
  • Big businesses more prepared
    Although it’s difficult, it’s not impossible. Larger businesses are much more prepared and are likely to have contingency plans to deal with any of the ill effects of Brexit.
  • Electricity prices effected
    Due to a possible single electricity market (SEM) split significant electricity price increases are likely within months or years (actuals are not known) of Brexit– which could result in many businesses leaving the industry.
  • Gas and electricity supply
    Although there may be price increases- there will be no disruption to electricity or gas interconnectors. This means no effect on supply.
  • Inflation
    An increase in inflation is likely – raising the cost of living- potentially meaning people will struggle to afford everyday costs i.e. bills, less disposable income.
  • Water Industry
    The water industry and your utilities in this area will remain largely unaffected. If anything were to occur the most likely point of failure would be the chemical supply chain. The supplies used to clean and treat water. However, companies in this industry are well prepared, so this is an unlikely outcome.
  • Alternative options and less reliance on the EU
    Eventual increased reliance on low carbon and naturally occurring energy is the best option to ensure an independent energy sector and ultimate survival. Investment and research into energy storage is also something that is forecast to occur.

Although the future isn’t clear when it comes to Brexit, this document sets out the worst-case scenario. We need to remember that’s what it is, a worst-case situation, this might not happen.

The government are taking steps to ensure that the outcome is better, so the message is clear don’t panic, keep up-to-date with upcoming news and be as prepared as you can be. You can sign up for Brexit updates from the government here- Brexit Updates.

 

If you would like to be prepared for the future of green and naturally occurring energy, to ensure you are in the best possible place for an independent future, don’t hesitate to contact us;

enquiries@utilityteam.co.uk
02476 997901

 

Read the full Yellowhammer Report here