Two-thirds of industrial electricity contracts are due to be renewed between now and October 1. And, according to Energyhelpline.com – the Energywatch-accredited price comparison service – companies coming to the end of 12 month contracts face increases of up to 40%, while those coming out of three year contracts could be asked for double the amount they currently pay.
Weyerhaeuser is one of the top five energy users in Ireland which, said UK marketing and sales director Geoff Rhodes, gives an idea of the scale of the problem. “Last year we saw energy costs go up by 20% and estimates for this year are between 25-30%,” he said, adding that inevitably the cost must be passed on to customers.
SmartPly has also experienced energy price rises of around 50% over the past two years. “It has affected the whole business,” said Andrew Macdonald, marketing and sales director.
MDF has been hit substantially by the increases in energy prices according to Hal Eccles, marketing and media manager at Lawcris Panel Products.
“One manufacturer has seen its monthly energy bill rise by £1m and another has shut down an MDF line,” he said.
Jonathan Elliott, head of business services at Energyhelpline.com, warned that now is the time to start looking at alternative suppliers.
“Those that leave it to too late will be looking at automatic rollovers as high as 150% and that is going to hurt heavy users,” he added.
