EEF 2006 Survey of Energy Prices

EEF has conducted energy surveys for three consecutive years. This reflects concern from member companies about price rises and the potential for disruption to supply when demand hits a peak.

Rising costs

This report summarises the survey’s findings on trends in manufacturers’ energy bills, how companies expect the situation to develop and what they are doing to offset the rise in costs.

In particular it shows that the increase in energy bills has intensified this year but that companies have developed a number of strategies to address this, particularly by paying greater attention to energy efficiency.

New strategies

A growing number of companies have also agreed longer-term energy deals. This has brought them stability at a time of great uncertainty but also means that many firms will not benefit from the current fall in wholesale energy prices for some time.

Firms currently agreeing their next energy contract face a dilemma: the improving supply situation is driving wholesale prices down but the situation still remains uncertain. Members would therefore do well to shop around for the best possible deal.

This report also looks briefly at what companies are doing on energy efficiency. We will shortly be publishing a more detailed report on this issue, based on this survey, in-depth interviews with members and desk research by EEF’s economics team.