What Does Brexit Mean for UK Energy Policy and Business?

Aug 15, 2016 5:05 PM ET

What Does Brexit Mean for UK Energy Policy and Business?

British companies are pressuring Greg Clark, Secretary of State for the Department of Business, Energy, and Industrial Strategy, to produce a long-term energy policy framework, as soon as possible. BEIS is a new agency formed, post-Brexit, by merging the Department for Energy and Climate Change with the Department for Business, Innovation, and Skills.

In light of the Brexit vote and the unexpected closure of the DECC, uncertainty in the UK energy sector has increased. A survey of 50 major energy users across a range of UK industries by consultants Inenco found that 30 percent believe energy strategy will suffer without a dedicated department. Two-thirds believe BEIS’ top priority should be new policies to resolve uncertainty.

While the new Conservative government has said that UK energy and climate commitments would continue, it also conceded that Brexit raises many major questions for energy markets, investors, and business users. Carbon Brief, a UK-based website that covers energy policy and climate change, has published 94 such questions that need urgent answers. You can read the impressive list at carbonbrief.org.

I’m John Howell for 3BL Media.