Energy experts “fearful” after Britain votes to leave EU
A number of industry professionals voiced concerns over a potential “Brexit,” with the Leave campaign’s 51.9% – 48.1% victory over Remain in stark contrast to a number of surveys conducted before the vote, with energy analyst EEVS reporting that 79 per cent of energy efficiency experts supported staying in the EU, while another study carried out by the Energy Institute revealed an “overwhelming majority” backing the Remain campaign.
Energy performance assessment specialist Elmhurst Energy emphasise how the UK needs to continue to set standards for energy efficiency, while also stating that energy ratings are “not an invention of Europe” and “will continue with or without Europe.”
“We believe that the EU has been good for energy efficiency, but it is obvious that issues of the economy and immigration had a greater impact on the outcome,” said Martyn Reed, Managing Director for Elmhurst Energy.
“We urge MPs not to ‘throw the baby out with the bath water’ and instead give careful consideration to the benefits that have been gained from the Energy Performance of Buildings Regulations before making any changes.
“The Government will still need policies and tools to enable the UK to use less energy and save people money. Consumers now expect information on everything they buy and buildings are no different. That demand will remain.
“Whatever happens next you can be sure that Elmhurst Energy will be lobbying the decision makers to ensure the good work Elmhurst Members do, is understood, and that the value of Energy Performance Certificates (EPCs) is fully appreciated.”
Scottish energy giant SSE has reassured customers that the result of the EU referendum presents “no immediate risk” to its service but may do if the result leads to a “prolonged period of uncertainty.”
“It is not yet clear how this matter will now progress, but SSE believes that the UK Government should be mindful of the importance that the harmonisation of the GB energy market with the countries in Europe can have on efforts to deliver clean, secure and affordable energy,” a spokesperson for the company said.
Along with efficiency and traditional energy services, the green building sector could also be affected according to the UK Green Building Council, with the firm’s CEO Julie Hirigoyen claiming that the referendum is “already sending shockwaves through the construction and property sector, the scale of which won’t be clear for some time.”
“It will be a tough trading climate that will impact companies both large and small. Both economic and political uncertainty will have some people asking whether the green agenda needs to be deprioritised while business goes into fire-fighting mode. This must and need not happen,” she said.
“The incentives remain strong for business to address climate change and other urgent sustainability challenges. Arguably now more than ever we need to minimise future risk, reduce costs, add value for clients, generate new commercial opportunities and ensure we have the best people working as productively as possible. A sustainable built environment is fundamental to these objectives.”
An increase in energy bills has also been cited by certain research groups as a potentially harmful knock-on effect of the referendum result, with Energy Secretary and Remain campaigner Amber Rudd arguing earlier this year that bills could rise by up to £500m per year if Britain left the EU.
Richard Black, director of the Energy and Climate Intelligence Unit (ECIU), believes leaving the EU is likely to put an upwards pressure on energy bills, due to both the direct financial costs of Brexit and also the impact of reduced investor confidence.
“An immediate challenge for the Government following this vote will be to prevent bills rising,” he said.
“Affordability and security of supply have been enhanced by our increasing gas and electricity connections with the EU. A choice for the government now is whether it wants to continue expanding those connections and hence the benefits to hard-working British families, or to shut up shop.
“On climate change there has been speculation that an independent UK would scrap measures to tackle the problem. These measures are mostly enshrined in British law, however, and it seems likely that the strong cross-party majority in favour of reducing emissions in both Houses of Parliament would seek to defend them."
Phil Foster, MD of Love Energy Savings, echoes the ECIU’s concerns over energy bills: “One of the biggest expenditures for small businesses will be their energy, and the UK public have been warned recently that leaving the EU could have negative consequences on our bills,” he said.
“With the possibility of rising energy prices, small business owners should look to cut back wherever they can. This can include introducing some energy efficiency policies for your office, whether that’s greener LED lightbulbs, installing bigger windows for more natural light or adding movement detectors to turn off your lights automatically. There are so many small changes to be made, and they all add up to save a great deal of money for SMEs.”
Matthew Spencer, director of Green Alliance, claims that the nation is divided, while arguing that our environment is one of the few things left which we have in common.
“Britain will now have to create new national laws and stronger public institutions to fill the gaping holes that will be left as we jettison strong EU environmental agreements,” he said.
“The public did not vote for a race to the bottom, they will expect standards of environmental protection to be at least as strong in the UK as they are in France and Germany. We now need a plan from government to achieve that.”
John Sauven, UK executive director for Greenpeace, says he is “determined that this country does not go back to year zero on environmental protection.”
"Over the coming months we all need to demand that the government replaces European regulations protecting nature with new UK laws that are just as strong. The environment barely featured in this campaign. Whoever comes to occupy Downing Street does not have a mandate to gut the environmental laws that we all rely on to protect us from pollution,” he said.
Dr Nina Skorupska CBE, chief executive of the Renewable Energy Association (REA), added: “This result raises serious questions for investor certainty, energy security and much needed investment in the UK energy infrastructure.
“Energy policy must be a priority for the Government now, with industry needing reassurance and ministerial clarity on priorities. The first in this list must be confirmation of the fifth carbon budget, which will hopefully give some confidence in the long-term direction of UK energy policy.
“The vast majority of our members had fears of Brexit, and we will be consulting with them and government in the coming weeks to set out a plan for continued low carbon energy investment, deployment and assurance of the 117,000 jobs in this sector."
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