16 November 2022
BPIF Energy Costs Survey 2022 - summary report
When it became apparent that rapid and extreme energy cost increase were going to have a significant impact on many companies in the UK printing and printed packaging industry the BPIF designed a survey to gather information from companies. This information has been used to help inform and add weight to our regular discussions with Government and other industry stakeholders on the issue of energy price increases., the effect of these on printing and printed packaging companies, and the wider impact on the future of the industry. Here we provide a summary of the main findings from this research.
Incurred increases over the last two years
28% in the 0% to 9% category - BUT 48% have incurred increases greater than 100% (24% greater than 300%).
44% have less than a year to run in the current contract, 35% have 1 to 3 years left.
63% have incurred energy surcharges on their purchases.
Paper, board, plastic film, ink, varnish, glue, chemicals, plates, laundry, and transport services have all attracted energy surcharges.
Obtaining energy supply quotes
52% have struggled to get quotes from alternative suppliers.
Security deposits or cash bond provision is an issue. Uncertainty heightened prior to Government announcement on support. Short-term window (one hour) for quote acceptance seems unreasonable for such a major cost decision. Energy suppliers refusing to take on new business in an extremely volatile marked - many examples of quote requests being refused, or extremely high quotes offered.
Expected increases in next two years
40% in the 0% to 9% category so far - BUT 49% expect increases greater than 100% (46% in the 100% to 600% ranges).
75% of companies expect to be under at least significant financial pressure if energy prices remain high for the next two years. 37% expect that pressure to be severe or extreme and 9% believe that their business will be unable to remain viable.
Passed costs on
43% have not passed any incurred energy costs on to their clients. 27% have passed on at least half of the incurred energy cost increases.
32% have no intention to impose an energy surcharge; 9% have and 19% are currently considering it. 40% might consider an energy surcharge in the future.
26% have already cut and redistributed investment, 44% intend to re-evaluate their investment decisions.
Comments on actions
Significant moves towards installing solar, LED lights, and introducing other energy efficiency initiatives such as voltage optimisation.
Reducing use of energy intensive processes - such as UV lamps. Reducing the length of time heating is on and lowering the temperature. More efficient compressed air systems, heating systems, and better insulation.
Curtailed production and mothballing proportion of factories and consolidating offices. Changing shift patterns, reducing headcount, re-financing of assets, closing down.
Top desired actions from Government are:
- Price cap on energy prices to business - 73%
- Windfall tax on energy companies - 47%
- Enforce a price freeze on energy prices - 42%
- Make grants available to SMEs - 24%
- Increased support for green energy - 22%
- Freeze on business rates - 20%
About this survey
The BPIF Energy Costs Survey 2022 collected response from 102 companies in the printing and printed packaging industry during September and October. Responses predominantly came from BPIF members, but some Picon and IPIA members were also included.Downloads
16 November 2022
When it became apparent that rapid and extreme energy cost increase were going to have a significant impact on many companies in the UK printing and printed packaging industry the BPIF designed a survey to gather information from companies. Here we provide a summary of the main findings from this research.
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