What does Brexit mean for your home heating bills?

What will Brexit mean for your home heating bills? What will Brexit mean for your home heating bills?

Britain has recently voted to leave the EU. Regardless of whether you agree with this decision, it’s bound to have an effect on energy prices. Let us not be coy about it: UK energy prices will most probably be higher for the UK because of this decision.



Until the EU referendum, being part of a large trading bloc like the European Union put the United Kingdom in a stronger position with our international trading partners.  Our position as part of the EU allowed us to leverage lower wholesale prices for gas, oil and other fuels worldwide.  A post-EU Britain is likely to suffer a steep rise in conventional domestic fuel prices.  In fact, we are now witnessing the germination of these fuel prices increases, due to the already dramatic fall in the value of sterling.  As oil and gas are predominantly traded in US dollars, a Sterling decline makes internationally traded fuel more expensive for Britain.  This could just be the tip of the iceberg.  HSBC are forecasting a 20% long-term drop in the value of Sterling.



However, there is a great way to minimise the effects of this rise on your household:

Switch to a home heating system which uses one or multiple types of natural biomass derived solid fuel — wood, smokeless coal, peat or solid fuel pellets.

 

Switching to a biomass home heating alternative will save you money in the long run and give you more fuel security. Switching to a biomass home heating alternative will save you money in the long run and give you more fuel security.

A significant proportion of the solid fuels we sell at Logs Direct are produced in the UK.  These are for, the most part, immune to price fluctuations created by international political situations.  Furthermore, the international price for biomass fuels is not predicted to be as affected by the political upheaval caused by Brexit.   Coal, wood and peat are more stable in times of currency fluctuations and political turmoil.



Of course, unless you have a renewable electricity source such as solar panels or hydroelectric, you will still depend on conventional power supplies to run your electrical appliances.  You can, however, switch to solid fuel options for your heating requirements, thereby greatly reducing the extent to which mainstream energy prices affect you.



It is uncertain whether the UK’s decision to leave the European Union will affect the reliability of conventional power supplies, in addition to increasing the cost. Solid fuels will not be affected by such problems, should they occur.  Britain produces enough wood, peat, and coal to enable you to heat your water, cook your food and keep your home warm throughout the year.



We can’t tell you whether Britain’s decision to leave will turn out to be the right one in the long-run. After all, we’re not clairvoyant! However, we can protect you from the short and medium-term effects on energy prices and energy reliability. Switch to a solid fuel heating system today and you can start using fuels that won’t be affected by the international situation.


If you have recently installed a biomass central heating system, a woodburner or multifuel stove Call the team today on 01524 812476.