The aim of this survey is to gauge the extent to which energy prices are affecting manufacturers and the steps that they are taking to address this. This year's survey shows a number of welcome developments.
It suggests that energy price pressures are easing but that manufacturers have increased their efforts to improve energy efficiency. Companies taking part in Climate Change Agreements (CCAs), or those accessing information and advice from organisations such as the Carbon Trust, are substantially more likely to take action on energy efficiency and to achieve the required results.
This year we have also widened the survey to look at the business opportunities associated with moving to a low carbon economy.
Summary
This report summarises a survey of EEF member companies on energy issues that took place during July 2007, some 215 member companies responded to the survey.
- Three-quarters of respondents reported seeing a rise in energy prices in the past 12 months.
- The median percentage price rises were 13% for gas and 10.5% for electricity. This compared with 55% and 43% respectively in the 2006 survey.
- Over a third of respondents showed no change or a drop in gas prices between their current and previous contracts.
- Respondents’ expectations of utility prices in the next 12 months have changed dramatically from last year’s survey, only 27% expect gas prices to go higher compared with four-fifths last year.
- Firms in CCAs or accessing information and advice from organisations such as the Carbon Trust are substantially more likely to take action on a range of energy efficiency fronts, particularly on audits and manufacturing process efficiency.
- Responses suggest that whilst making energy more expensive will encourage greater energy efficiency, other measures are likely to be more effective.
- Just under a quarter of respondents identified one or more business opportunities from the transition to a ‘low-carbon economy’.
- Businesses favour climate change policy instruments based on positive rather than negative incentives.
About the sample
The energy survey was conducted during July 2007. 215 member companies responded to the survey (11% response rate).