UK News Crisis as energy costs in factories surge as much as £1m a month
Termination, Bankruptcies, Prices: In these energy suppliers, there are currently problems
Anyone who received mail in the past weeks by his electricity or gas supplier is usually found there bad news. For example, electricity prices for new customers rose with the Rhine Energy for example within a few weeks more than twice to 72.8 cents. The gas prices had already been significantly increased in autumn, and also for existing customers. Only on Wednesday the provider announced to recreate cheaper electoral rates for new customers.
UK manufacturers are in 'survival' mode as they endure the pain of spiralling energy bills that are already threatening a cost of living crisis for consumers.
A surge in the cost of power has left energy-intensive firms in industries including ceramics, chemicals, glass and steel battling the prospect of plant closures and job cuts.
Industry groups say a lack of Government support, despite months of discussions with UK Ministers, could mean some manufacturers will soon reach critical levels of financial difficulty.
Chemical specialist Solenis, which produces a polymer used in wastewater treatment and paper-making, has seen its energy bills quadruple over the past two years.
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The surge in the value of Shell to £133bn, making it the most valuable firm in the Footsie will doubtless have critics of big oil foaming at the mouth. Lib Dem leader Ed Davey, former energy secretary in the coalition, is among those loudly advocating a windfall tax on North Sea oil operators to soak up the perceived excess profits from surging oil and gas prices.Revenues raised would be used to bail out home energy users reported to be facing average bills of £2,000 this year.
David Calder, who runs Solenis's 550-strong site in Bradford, said he faced £1million a month extra on the firm's average monthly fuel bill. Previously, the site's annual cost of energy was below £10million whereas it is now more than £20million. He said: 'I have been in the industry for over 35 years and I have never seen anything like this. It's even worse than I imagined.'
Glass giant Pilkington – once the sponsor of England's Rugby Football Union – said its energy bill has increased by an additional £10million. Chief executive Neil Syder told The Mail on Sunday that the cost of Pilkington's average 4mm glass product has increased by 30 per cent, equivalent to a rise of £4,000 for a 25-ton wholesale order. But this is not being passed on in full to Pilkington customers, with the company absorbing some of the cost itself.
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rising energy prices burden households with a low income particularly hard. According to the Federal Statistical Office, they provide pro rata most for electricity, heating and hot water. © Hauke-Christian Dittrich / DPA A man turns in an apartment at the thermostat of a heater. households with a monthly net income below 1300 euros turned in 2020, as a fuel oil, gas and electricity were comparatively cheap, on average 95 euros for live energy. This corresponded to a share of 9.5 percent of thei
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'We are not profiteering out of it but we have to pass some of the costs on to customers,' he said. 'But we're not passing on the full cost.'
Syder added that he is hopeful of Government support. But Dave Dalton, chief executive at industry body British Glass, said energy cost hikes have left firms facing 'death by 1,000 paper cuts'. He added that the glass industry has projected energy costs of £969million for the coming year, which means many companies are unable to make a profit.
Dalton said a company typically spending £40million a year on energy saw this bill rise to £100million last year. And that is expected to soar to £200million in 2022 on average. British Glass sent a letter to the UK Government last week which said Ministers are yet to 'appreciate the severity' of the situation as companies are being left in an 'impossible position'. It added: 'We are beyond the margins, we are not making money. We can survive but survival is no mechanism for life and business.'
Ovo responds to energy crisis with move to cut quarter of workforce
Ovo Energy, the UK's third-biggest gas and electricity supplier, is to cut a quarter of its workforce as part of a restructuring aimed at saving costs amid the deepening industry crisis. © Other Ovo Energy has about 4.5 million UK customers Pic: Ovo Sky News has learnt that Ovo could announce details of its plans as soon as Thursday, with roughly 1,700 out of 6,200 roles expected to be lost as part of a voluntary redundancy programme.
The delay in any Government action is an increasing concern, industry groups said. Stephen Elliot, chief executive of the Chemical Industries Association, said: 'We don't want Government to leave it until we have a closure.'
There has already been one shutdown on English soil related to the energy costs crisis, with fertiliser giant CF Industries forced to temporarily close two plants last year.
CF, which produces around 60 per cent of the UK's commercial CO2 needs, was given a taxpayer-funded subsidy worth tens of millions.
Both Labour and the Liberal Democrats have proposed respective funds worth £600 million and £500million respectively to tackle the energy crisis, which would provide financial support for energy-intensive firms in greatest danger.
A Government spokesman said: 'Ministers continue to engage constructively with industry to understand and to help mitigate the impacts of high global gas prices, building on the £120million we provide each year to lower electricity costs.'
Plea to Government to take urgent action to deal with energy crisis .
The Chancellor has been asked to act decisively.They wrote to the Chancellor asking him to act “decisively” to support consumers with spiralling bills and help business manage inflated costs.