Manufacturers face new energy price hike
1 min read
New data published today (23 July) suggests that just as some of the first signs of economic recovery are starting to shine through, the UK's manufacturers are facing significant energy price rises.
According to the latest findings from BDO Stoy Hayward's Quarterly Manufacturing Energy Tracker, during the second quarter of 2009, oil prices rose by 31 per cent in comparison to the previous quarter – an average of $61.35 a barrel compared to $46.74 in Q1.
The report says that without taking into account demand and supply models for energy prices, manufacturers will be faced with further energy price rises of 17 per cent over the next 10 years as a result of the government's plans to reduce carbon dioxide emissions.
Tom Lawton (pictured), head of manufacturing at BDO, said: "As manufacturing output has risen for four consecutive months now, the last thing manufacturers need is a rise in their energy costs. All energy price rises will do is hamper manufacturers' chances of success in this tough environment."
Manufacturers needed to focus on how they made the best use of their energy and start looking towards more efficient/greener energy options in the future – particularly in light of the government's White Paper on renewable energy, Lawton went on.
"One small mercy is that oil prices are still some 52 per cent cheaper that this time last year when they reached an all time average high of $128.19 a barrel."
However, although oil and jet fuel has risen, it was not all doom and gloom for the sector as both electricity and gas prices fell during Q2 – gas by 40 per cent and electricity by 23 per cent in comparison to Q1 2009.
