Manufacturers call for a fairer deal on gas

By Rick Pendrous

- Last updated on GMT

Related tags: Cost

Manufacturers call for a fairer deal on gas
Food manufacturers have called for an investigation into possible market distortions, which are resulting in them paying much higher prices for gas...

Food manufacturers have called for an investigation into possible market distortions, which are resulting in them paying much higher prices for gas than their competitors on the continent.

Food and Drink Federation director general Melanie Leech has been holding talks with the government and energy regulator Ofgem to resolve the issue, which is one of the biggest cost hikes currently facing the industry.

“We will make the case to government and regulators when we think the markets aren't working properly,” said Leech. “And certainly, in the case of energy we are talking to them on a daily basis.”

Leech went on: “There is enough energy in the system to meet all the needs. Yet some of our members feel that energy isn't flowing - gas in particular - appropriately through the system to get to them at the appropriate price for the market.”

Bodies such as the Confederation of British Industry and Engineering Employers Federation have also reported the problems manufacturers are experiencing in passing on higher energy costs to their customers.

The FDF has yet to receive a reply back from Ofgem following its latest representation. It is also awaiting the publication in the Spring of a report into the gas market by the European Commission.

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