UK Printers Must Keenly Negotiate Energy Deals Now

UK printing businesses whose electricity contracts come up for renewal this autumn should act immediately to avoid the seasonal spike when companies sign new contracts.

UK printing businesses whose electricity contracts come up for renewal this autumn should act immediately to avoid the seasonal spike when companies sign new contracts.

That is according to Utility Auditing (UAL) when, the company warned, around 70 per cent of businesses begin their new energy supply arrangements and the consequent surge in demand causes prices to peak.

Energy management company Utility Auditing said that companies should buy early and consider locking in to longer contracts to beat the anticipated September and October price increases.

"There have been dramatic price rises in excess of 80 per cent in the wholesale electricity market over the past 12 months and the price of gas has doubled," explained Paul Backx, managing director of UAL.

He continued: "There is very little sign of prices easing and given unprecedented market trends of 2005/06, there is every likelihood that the major autumn contract renewal round will drive further speculative forward buying, leading to a large upward price swing in September and October." The company believes that energy is powering its way on to the boardroom agenda as soaring UK energy prices force companies to overhaul purchasing policies and improve their energy efficiency management.

Energy is now one of the biggest overheads for business and more companies than before are seeking professional advice and support to mitigate those rising costs.

Backx explained: "Increasingly we are seeing larger companies implementing long-term contracts to hedge against sharp movements or big annual price hikes.

There appears to be little relief ahead in the coming year, with extreme volatility and further bullish drivers in the market, although forecasts suggest that prices will rise less sharply." With the environmental and cost influences to reduce carbon emissions, many businesses are turning their attentions to conservation, added UAL.

On average, companies can save between 10 per cent and 20 per cent by becoming more energy efficient, meeting their environmental obligations at the same time.

As Carbon Trust accredited consultants UAL said that it provides fully-funded energy surveys for businesses spending more than GBP50,000 per year on energy.

The on-site assessment by UAL engineers is claimed to highlight simple and low-cost opportunities for reducing emissions and the company produces a report that emphasises the available measures for companies.

UAL, which said it is a provider to 60 accredited chambers of commerce and other national trade associations in the UK, purchases GBP150 million worth of energy on behalf of UK business each year.

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