UK plastics leader questions "shocking" energy cost rises

London - The British Plastics Federation’s (BPF) president Philip Watkins made a strong attack on the steep rise in UK energy prices during 2011.

UK energy prices have risen in average 15% this year and there are more increases to come, Watkins said in a speech at the recent BPF annual dinner, in London.
“The shocking increases in energy prices have to be questioned,” Watkins said.

“Regulation doesn’t seem to work on the six major energy suppliers who seem to hold our country to ransom with their high prices and reluctance to invest in new capacity,” he added.

With regards to the economy, Watkins said, “two shadows have deepened over the Plastics Industry; low consumer confidence and continuing financial turmoil in the Eurozone and the USA.

“We can with just cause be grateful at this time that Britain is not in the Eurozone, but their unceasing turmoil has a direct effect on all our companies and the banks we rely on, sometimes, for loans and credit.”

On BPF companies’ heavy reliance on exporting to western Europe, Watkins said, “My message is don’t be too dependant. With the BPF and UK Trade & Investment assistance look to the growth markets in China, India and elsewhere.”

Watkins also highlighted issues around the availability and cost of plastics raw materials and additives.

“We are concerned about the long-term trend of European raw materials production capacity being closed and have encouraged the European Commission and our Government to look seriously at this strategy issue,” he said.