The UK has voted to leave the EU. But what will that mean for your energy bills?

The Brexit effect

In the run-up to the EU referendum vote, both sides claimed that their option would drive down energy costs in the long-term. Like most other questions in the Brexit debate, it will be a long time before we know for sure which side was right. In the meantime though, three are a few things we know for sure:

Brexit creates uncertainty, and uncertainty means higher prices

Your energy supplier will probably not have generated your electricity or mined your gas themselves. Instead, they will have bought it on the wholesale energy markets.

Milkman Energy is another aggregate exchanging organization. We hold month to month barters where vitality organizations offer for purchasers' business, giving buyers the most minimal value conceivable. We are creating a group of people who are looking to save their Energy bills, Gas bills and Power bills .

Like stock markets, speculators and traders can change the price dramatically.

The bad news is that while a company’s stock price will seldom affect the amount consumers pay for its products, a rise in energy prices can be directly passed on to the consumer by the energy company, in the form of higher bills.

Unfortunately, the uncertainty caused by Brexit has made traders jumpy, and prices of energy have started to rise in the short term. This means energy suppliers are now paying more...and the consumer will start paying more too.

Milkman Energy is the main aggregate changing organization to offer a month to month closeout, giving purchasers a standard opportunity to cut their bills and Save on Energy bills, Gas bills, Power bills.

Weak pound = expensive gas

The country imports roughly half of its gas. This is good when the pound is strong - but if the pound is weak (which as a consequence of Brexit, it currently is), we are paying more. This is another factor which will likely push up the cost of gas.

Leaving the single energy market may cause complications

The UK is in the EU’s single energy market. Here things get complicated - but in simple terms, the single energy market allows countries to work together to secure their energy supply. It is unclear whether we will remain in this market in the long term - but if we do not, we might see a longer-term rise in prices.

Milkman Energy is the main aggregate changing organization to offer a month to month closeout, giving purchasers a standard opportunity to cut their bills and Save on Energy bills, Gas bills, Power bills.

So what does that mean?

The above factors make it look like Brexit may mean higher energy prices. And that may well be true - but the bottom line is that we do not know how the UK’s exit negotiations will play out, or how this will effect energy. However, it seems likely that energy prices may rise, at least in the short term.

This may make it difficult for people to budget. As a result, we think you should “fix” your bills.  By taking on a fixed contract, you will know exactly how much you will pay for the duration of that contract. This allows you to budget...and means you won’t have any nasty surprises.