Energy Traders Brace for Market Chaos in No-Deal Brexit
- British gas and power costs could surge amid freezing weather
- Traders may hesitate unless U.K., EU strike “no-deal deal”
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The possibility of Britain exiting the European Union without a deal is coming into sharper focus for power, natural gas and carbon allowance traders as futures for next month start to expire.
A no-deal Brexit could rattle traders because of the complicated links that hold the EU energy market together. For example, natural gas produced in Norway can be shipped to Zeebrugge in Belgium, where it’s then piped to England to feed a power plant that sends electricity to millions of homes and businesses. Layers of environmental rules and market and financial regulations make the connections even more complex.