EU legislation has a very significant impact on the Power and Utilities (P&U) sector.
The GB energy market is also increasingly integrated with the Single Energy Market in Europe.
- The impact of Brexit on the P&U sector will depend on:
- the new relationship the UK has with the EU, and
- the make up of the new Government, whether there are changes to the direction of energy and climate policy; and whether policy decisions get delayed as resources in Government are diverted to the EU negotiations.
- The market fundamentals for P&U in the UK remain largely unchanged – the need for significant investment in the energy and water sectors, and the need (over the longer term) to decarbonise the economy, remain in place.
- The impact on regulated networks, or existing assets, will be less marked than the possible impacts on new investments. Much will depend on the confidence of international investors.
- KPMG has tools available to help your business think through and address the impacts (at: kpmg.com/uk/euref, in the ‘EU Referendum Forum’).