Firms fear higher energy prices lie ahead.

Most firms fear that energy prices will continue to rise over the next year, despite hopes of cheaper gas and oil this winter, according to a survey yesterday.

A poll of more than 200 manufacturing firms by the Engineering Employers Federation, revealed that they have been hit by average increases of 55% in gas prices and 42% in electricity costs this year.

Four out of five expect further price rises over the next 12 months, while only 4% have any back-up energy supplies in the event of any problems this winter.

The federation said an increasing number of companies have responded to higher prices by signing longer term contracts of two years or more, which means they are not able to benefit from any reductions through greater supply coming on stream in the coming months.

Employers Federation director general Martin Temple said, "While there is no dispute that the outlook for this coming winter is improving, we are not yet out of the woods as far as the impact of previous rises are concerned.

"Despite recent falls, the price of energy remains higher than it was this time last year, and there is little prospect of industry seeing any benefit for the foreseeable future."

Sources: http://www.icwales.co.uk

Find out if you can save money on your Household Energy prices.

For savings on your Business Energy see our Business Electricity and Business Gas pages.

Go Back to Latest News >>