A Staffordshire managing director is calling on the Government to take “urgent action” to avert business closures due to spiralling energy costs.
Clive Durose, head of a specialist timber component manufacturers based in Trentham, Stoke-on-Trent, says costs are so overwhelming many woodworking firms will be trading at an irrecoverable loss.
His own business is experiencing a six-fold increase in electricity prices, from £5,500 to £30,000 a month.
Most of Clive Durose Ltd’s energy needs are for its dust extraction plant which needs to run throughout the day during wood machining.
“Ultimately, unless we get some pretty drastic help, I don’t see how we can cope,” said MD Clive Durose.
“Although we are turning over more than £3 million pounds a year it is eating away at our profit and our margins.”
It is expected that the Government is shortly to announce an extension to the non-domestic energy bill relief scheme to help businesses beyond next March.
Clive said: “Token gestures of energy price reductions are not going to do enough.
“This isn’t simply a case of increasing selling prices or cutting other costs to compensate – the energy costs are so overwhelming.
“The Government need to do something realistic to make sure energy costs are kept down to a realistic level.
“I cannot adequately express how important it is that this problem is addressed with utmost urgency.”
Clive’s plea comes hard on the heels of a call by the ceramics sector to the Government for continued energy bill support.