Glass industry demands government action on energy crisis

British Glass is once again calling on government to support UK manufacturers against increasing energy costs.

Businesses have been struggling to keep afloat due to the escalating energy prices; manufacturers have seen their gas and energy prices quadruple and triple over the last year. Carbon Compliance costs have also increased from lows of ￡16 in 2020 to over ￡80 per allowance in 2021. Yet, there has been a lack of action from ministers.

Glass is a relatively low-price material and the rapid increase in energy prices will soon mean that production costs outweigh the product value. UK companies are also paying more for their energy than those in the EU, putting them at a competitive disadvantage.

This is continuing to put pressure on the glass supply chain, which will ultimately impact the consumer with rising costs for glass products such as food and drink, packaging and glazing.

This may mean UK produced glass products such as jams, pasta sauces, beers and spirits will become too expensive. This could see the UK increasing imports from EU countries, such as Turkey, Oman, Egypt and Russia in the long-term, where energy and carbon costs are significantly lower.

British Glass CEO Dave Dalton said: “Despite assurances from the Secretary of State, there has been nothing done to support manufacturers through this crisis and, coupled with the disparity between carbon prices in the UK and the EU, putting UK manufacturers at a competitive disadvantage. There is a very real possibility that businesses will no longer be competitive if the lack of support from government continues.

“We are not asking for a bailout using taxpayers’ money. We are simply asking for policy to support the longevity of the industry and create a level playing field for UK manufacturers alongside international competitors. […]

“Manufacturers cannot continue to cover these costs or attempt to pass them onto customers and also be expected to meet climate targets, maintain much needed jobs in underprivileged areas of the country and still be a key contributor to the UK economy.

“Further delay will be detrimental to our sector, and we are calling on government to open an immediate dialogue and take real action now.”