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Energy costs blasted

Oct 26 2005

By Evening Gazette

 

Teesside firms and industry experts have hit out at the crippling costs of soaring energy prices.

North East Process cluster hold a meeting at the Farndale Meeting Room, Wilton Centre to discuss the energy price hikes. CEO Stan Higgins is front

The North East Process Industry Cluster - NEPIC - met with Teesside companies who are large industrial energy users.

Stan Higgins, chief executive of NEPIC, said energy costs had soared by more than 100pc this year - and were still rising.

"The problem for the chemical industry on Teesside is it is not easy to switch off plants quickly so high prices have to be paid to maintain supply," said Mr Higgins.

"In a worst-case scenario - should one company have to temporarily shut down plants as a results of high energy costs - others could be forced to do so as a results of the 'domino' effect."

Chemical giant Huntsman said costs had risen 200-250pc in the last three years and BOC, which has a site in Middlesbrough, has seen a 70pc increase this year.

The concerns come as energy minister Malcolm Wicks today warned chemical firms may face gas shortages this winter.

Mr Wicks said some firms have clauses in their contracts with suppliers requiring them to cut back if supplies come under pressure. Those clauses could be activated if the winter is as harsh as forecasters predict.

The warning came as Mr Wicks said Norway, the Netherlands and Belgium are to be added to the UK's list of gas suppliers helping increase supply by the end of next year.

 

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