Impact Of Brexit On UK Energy Policy: SWOT Analysis

Impact of Brexit

The exit of United Kingdom from the EU does not have much impact on UK’s energy business (Twidell and Weir 2015). EU never is never capable with the power to determine the mixture of energy of the neighbouring states or come under the planning of the energy union of other countries which is to choose among developing shale gas or eliminating the nuclear power. The impact of Brexit is less within UK because of the less British interaction. Brexit will not change much of the relationships with neighbours and UK will have the price of oil and gas unchanged at global level. If UK will be the part of the internal energy market or IEM then the influence will evolve a lot and have a role on the EU energy market (Fernandes 2016).

Brexit is powerful enough to increase the autonomy of UK for making the climate change policy as well as the energy. There are three options in the relationship of the UK and EU’s internal market of energy, they are: the right of entry, sponsorship and exit. UK will be released from the targets of renewable energy of the EU directive of the renewable energy due to the need of liberalisation and development of the cross-border markets for renewable energy and the direction of the policy will endure (Leete and Wheeler 2013).

As the EU is the most powerful part of the world trade organisation, it is the main organisation that governs the world trade and hence is the central body that implements the rules for the world trade. UK’s membership with the EU had allowed influence of the country’s economy which the other countries do not have. The membership has not affected the process of trade of UK with the other countries. The EU has played a supporting role in the developing of UK’s energy policy and made the country a part of the competitive industry of renewable energy resources globally. UK has fixed a renewable energy target till the year 2020 for a percentage of 15. The strategy UK is planning to apply for this is the action plan for the renewable energy of the nation.  The role of UK in the energy union after the Brexit is difficult and limited, dependant on the result of a trade model (Dhingra 2016). UK needs to try to remain a part of the initiatives of the countries of North Seas offshore because they have lots of resources and the costing is very less and the economic gains are more resulting to the cooperation between the networking and industrial development. The UK climate change policy is not much affected by the Brexit. EU policies have influenced UK and helped it to remain free in choosing the path on their own for what the country want to do. The small enterprises of the country were not benefited by the membership and hence after the exit they will get some space and will be able to forbid the regulations that they faced during the membership. The exit will provide the country with control over the sovereignty and decisions regarding the border affairs of the country. The UK government will have full control over the immigration policy of the country. The country will be able to increase the security power and as the country will be able to control the border affairs it will reduce the risk of terrorism within the country (Wadsworth 2016). There will be more opportunities of jobs in the country itself and the candidates will not have to leave the country and go anywhere else for job (Garner 2015).

SWOT Analysis

Following the European trading, UK will face problems in the Ireland market and also loss in the security and efficiency. If UK follows the Norwegian model, then the country will have to follow the EU rules and cannot suggest initiatives for developing the rules. Following the bilateral agreement will also affect the market of the UK. Brexit will increase the risks of interconnections and external policies of UK. Brexit will not make much difference to the competitiveness of the UK market (Baker, Ali and Thrasher 2016).  Leaving the EU will defoliate the condition of the UK market and reduce the negotiating power because the powerful members will be in the EU tables. There will be reduction in accessing the EU clients and forbid the free movement of the academic and the industrial talent with EU. The tax will shrink as 50% of the trade are exported to the EU and exiting Brexit will affect the revenues of UK. There will be large number of unemployment because a large number of posts will be left out due to the exit and there will be changes in the immigration policy of UK. Leaving the EU will reduce the chances for the candidates to choose which company to work with. The exit will reduce the influence the country has over Europe. The access to the European countries will also be affected due to the exit (Zeitzmann 2016).

The opportunities that UK will get are an energy union that will allow free flow of energy and establish secure and eco-friendly energy for the citizens. UK will also get a strategy to take care of the security of the energy union that will represent measures to enhance smoothening in the security supply of the EU. In order to widen the networks for gas and power supply a market for the power lines and gas pipelines will be developed and there will be an adaption of few rules in order to promote the choice of the customers (Dhingra 2016). By developing the sources of the renewable energy, there will be increase in the internal production of energy in the country. This will promote the energy efficiency within the country and implement safety rules in order to manage the issues like the clearance of the nuclear wastes and operating of the off shore platforms of oil and gas. As a member of the EU the country has contributed to GBP and that is more than the percentage the government spends on the NHS every year. Leaving Brexit will provide UK the power to accomplish itself as an independent and strong nation (Fröhlich, H., 2016). 

The stock markets will be affected hugely due to the exit and this has not happened before that the banks and the stock market suffered with such a huge loss. Many companies are facing the problems of paying tariffs due to the exit and after Brexit the country is losing the advantage of the membership and even the production of the large companies like Nissan. The economy of the country will also be largely affected by the exit ((Šev?íková 2016).

Conclusion:

There is a general understanding that the economy and the security related matters of the country will be having lots of changes due to the exit. The Brexit was not a good decision for the country because the benefits were less than the weakness and problems that the country faced. The growth of UK economy will be largely hampered due to the Brexit and this will result in loosing companies and shares in global market, although the impact is still uncertain but it is for sure that the UK will face many problems due to this but also have many opportunities for themselves (Irwin 2015).

References:

Baker, A.H., Ali, R.R. and Thrasher, A.J., 2016. Impact of BREXIT on UK: the need for continued pan-European collaboration.

Dhingra, S., Ottaviano, G., Sampson, T. and Van Reenen, J., 2016. Brexit: the impact on UK trade and living standards (No. 469). Centre for Economic Performance, LSE.

Dhingra, S., Ottaviano, G., Sampson, T. and Van Reenen, J., 2016. The impact of Brexit on foreign investment in the UK. BREXIT 2016, p.24.

Fernandes, M.C., 2016. How Will Brexit Impact Deposit Balances in the UK.

Fröhlich, H., 2016, December. The future of the EU after Brexit: Reform or Further Disintegration?. In Europe in Trouble (pp. 89-100). Nomos Verlagsgesellschaft mbH & Co. KG.

Garner, W., 2015. Would the UK Benefit from Leaving the EU at the Next Proposed Referendum?.

Irwin, G., 2015. BREXIT: the impact on the UK and the EU. London: Global Counsel.

Leete, S., Xu, J. and Wheeler, D., 2013. Investment barriers and incentives for marine renewable energy in the UK: An analysis of investor preferences. Energy policy, 60, pp.866-875.

Šev?íková, M., 2016. Analysis of The Main Causes of Brexit and Its Potential Consequences. on European Integration 2016, p.961.

Twidell, J. and Weir, T., 2015. Renewable energy resources. Routledge.

Wadsworth, J., Dhingra, S., Ottaviano, G. and Van Reenen, J., 2016. Brexit and the Impact of Immigration on the UK. Centre for Economic Performance. LSE, pp.34-53.

Zeitzmann, S., 2016, December. Why Brexit is going to happen (or, at least not the way the British thought it would). In Europe in Trouble (pp. 101-110). Nomos Verlagsgesellschaft mbH & Co. KG.