Energy Cost Price Crisis – Statement from CPI

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The Confederation of Paper Industries (CPI) represents the whole of the UK paper cycle – from papermaking to conversion into ready to use product, and collections ready for recycling back into new products.   

The COVID-19 lockdown illustrated how important paper-based products are to keeping the economy functioning – from packaging for food, drink, and medicines to hygiene products.   

While all parts of the sector are wrestling with the huge increase in energy costs, papermaking is intrinsically energy intensive and cost increases of the current magnitude are not sustainable.  The Government needs to act urgently to address the current crisis and prevent production being disrupted and longer-term damage to companies.  

The paper sector is one of the Energy Intensive sectors (alongside steel, chemicals, ceramics, cement and glass) that has been in discussion with Kwasi Kwarteng and his officials. 

intl1 11oct21Andrew Large (Director General) commented:

“We’re heartened that there’s an understanding within BEIS about the need for urgent action.  Constructive discussions are continuing at pace over a package of measures to offer immediate support during the current crisis, but also to address longer term issues around uncompetitive UK energy prices.  We will comment more fully once the result of these discussions are known.”  

In common with our colleagues in other sectors, CPI is calling for action in a number of areas:

  • Introducing immediate Winter Cost Containment Measures on gas, electricity and carbon prices – to ensure that those most exposed to high costs can continue to operate.
  • Action to reduce Energy Intensive Installation network costs – so they move into line with costs faced by competitors outside the UK.
  • Support for companies so they can remain competitive as the UK economy decarbonises – we need global actions to address climate change. 
  • Modifying the Gas Emergency Measures – so that sufficient gas is available and there are no emergency or sudden supply disruptions that can damage equipment.

CPI is the leading trade association representing the UK’s Paper-based Industries, comprising paper and board manufacturers and converters, corrugated packaging producers, makers of soft tissue papers, and collectors of paper for recycling.

CPI represents an industry with an aggregate annual turnover of £12 billion, with 56,000 direct and a further 93,000 indirect employees.

Source: Confederation of Paper Industries (CPI)