Electricity price rise

BDO Stoy Hayward’s Quarterly Manufacturing Energy Tracker has reported a 23 per cent rise in electricity prices for manufacturers in the third quarter of 2008.

The recent increase means that electricity prices have now risen by 243 per cent since the same time last year.

The drop in the price of oil may bring some relief to smaller companies who are struggling to cut costs. The third quarter of 2008 recorded a 12 per cent drop in prices, the first fall in 22 quarters.

Gas prices have not changed significantly, falling by only two per cent since the previous quarter. Overall the price UK manufacturers paid for gas has increased by 95 per cent since last year.

Tom Lawton, head of manufacturing at BDO Stoy Hayward, said: ‘UK manufacturers are entering a very difficult period and should establish close management of key costs, including energy costs, to ensure that all steps possible are taken to minimise costs and cost increases.

‘The recent financial turmoil might have one beneficial effect in the overall reduction of energy prices – but there is still a lot to be gained by active and involved management.’