Everybody's talking about... energy costs

<i>Energy suppliers, including npower and British Gas, have increased gas and electricity prices by up to 50%, according to some print firms. How are printers coping?</i>

THE SMALL TRADE PRINTER
We fixed our prices last year, but when we renewed the contract this August prices had more than doubled. The extra cost per month is roughly equivalent to one member of staff’s wages.

We have always been very careful with our power usage and keep graphs detailing our use. We have had a vast reduction in our electricity costs since relocating in 2006. When we first moved, we used the incumbent electricity supplier but after monitoring the usage we found discrepancies in its recordings.

We switched supplier a year later and our usage dropped dramatically despite using the same machines for the same length of time.

It’s important to take the time to observe your usage and review your supplier.
Alasdair Brown, chief executive of Abbot Print

THE ENERGY SUPPLIER
The price of wholesale energy has soared over the past 12 months, with the cost of gas and coal increasing by 122%, and oil by 79%. We always try to protect our customers against rising prices and encourage them to contact us to discuss ways to protect their businesses such as using fixed-term contracts.

We are also working with customers to help them reduce their energy costs, sometimes by as much as 20%, by improving their energy efficiency. For example, our E3 proposition helps reduce energy consumption and includes energy efficiency tools and a free energy monitor.

We have selected four small businesses, including a Birmingham-based printer, to receive a free energy makeover. The results will be available on our website.
Ray McGloin, head of business sales at npower

THE LARGE COMMERCIAL PRINTER
Our energy costs have increased by 50%. The current conditions in the web sector are fundamentally different to those over the last few years.

While selling prices have been in steady decline, operating costs have been stable and, in many areas, we have been able to achieve savings. Though I can’t see how our sector is going to avoid increases in costs over the next 12-18 months.

Returns to investors have been low for a long time and logic indicates the need for higher selling prices. But whether we can apply that to the web offset sector right now is a different matter.
Charles Jarrold, managing director at Southerprint
Managing director
Southernprint