Utility Week

UTILITY WEEK | 1ST - 7TH JULY 2016 | 13 Energy minister and prominent Leave campaigner Andrea Leadsom will speak at the Utility Week Energy Summit in Westminster on 5 July. She will give a ministerial address on the future of energy in the UK. For further information, visit www. uw-energysummit.net UTILIT Y WEEK ENERGY SUMMIT 2016 The vote to leave the EU was greeted by plummeting prices in the City. The FTSE 100 index fell 8 per cent on Friday – wiping £120 billion from the index – although it regained some ground, closing 3.2 per cent down. Utilities were hard hit, with their share prices falling by about 7 per cent. Globally, the exit vote saw more than $2 trillion (£1.5 tril- lion) wiped off stock markets on Friday. These falls reflect an immediate period of uncer- tainty as the UK begins the process of unwinding EU legislation and negotiating its exit. Moody's Inves- tors Service said the leave vote "signals a prolonged period of uncertainty" and is credit negative for UK plc. Source: xe.com EU REFERENDUM RESULT Remain 48.1% (16,141,241 votes) Leave 51.9% (17,410,741 votes) "The UK now looks small-minded and distrustful of others. Do you want to go to a country with that attitude? So you can imagine a higher cost of energy as we continue along that path." Angus MacNeil, chair of the Energy and Climate Change Committee "This result raises serious questions for investor certainty, energy security and much- needed investment in the UK's energy infrastructure. Energy policy must be a priority for the government now." Nina Skorupska, CEO, Renewable Energy Association "Whatever government emerges in the aftermath of the leave vote, it will need to clarify its policies with respect to climate change, renewable energy, technology preferences, state aid and many other matters of direct relevance to the utility industry, and to its investors." Tony Ward, head of power and utilities, EY "Anybody who says they know exactly what's going to happen in the coming days, weeks and months is kidding you because nobody is going to know what happens." Mike Foster, chief executive, Energy and Utilities Alliance Consequences of Brexit for the union Scotland's first minister Nicola Sturgeon said within hours that a second Scottish independence referendum is "on the table" and it is "democratically unacceptable" that Scotland faced the prospect of being "dragged out" of the EU against its will. This reanimates concerns that emerged during the first Scottish referendum in September 2014, including worries that barriers could be erected in the single trans- mission network, and that one regulator could be split into two. Sturgeon has also raised the possibility that the Scottish parliament may seek to veto the Brexit plans in an attempt to keep the union together and Scotland in the EU, negating a whole plethora of single energy market and regulatory issues. Northern Ireland deputy first minister Martin McGuinness has called for a border poll on a united Ireland, which would have knock-on effects on utilities in Ireland. US DOLLARS PER £1 1.50 1.45 1.40 1.35 1.30 21 June 27 June EDF SHARE PRICE 12.0 11.5 11.0 10.5 10.0 9.5 22 June 27 June CENTRICA SHARE PRICE 220 215 210 205 200 22 June 27 June EON SHARE PRICE 9.5 9.0 8.5 8.0 22 June 27 June Stock watch Policy & Regulation

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