Oct 6 2006
The British Plastics Federation (BPF) has teamed up with Inenco to deliver a new scheme to improve energy procurement for UK Plastics businesses.
Despite a recent fall in prices, the volatility of energy markets remains high and traditional negotiation methods are becoming less effective in the management of costs and risks. The scheme offered by the BPF and Inenco, an energy purchasing and management consultancy, is designed to reduce risk premium, lower underlying energy costs and improve supplier service for BPF members.
Peter Davis, BPF Director General said:
"With an average of 5% of turnover for a plastics firm spent on energy, recent price increases have been crippling. We have been exploring options to support members - this scheme will provide an effective risk managed procurement option for members to combat volatility and to lock in to attractive prices. Inenco are the obvious choice to support this initiative, the company have pioneered a wholesale energy purchasing scheme and are already purchasing around GBP500m worth of energy per annum."
Brian Mann, McKechnie Plastic Components concluded with:
"After assessing all of our options carefully we came to the conclusion that wholesale purchase through Inenco was the most sensible procurement route for McKechnie, both in terms of savings provided and the management of risk. The BPF working with Inenco is great, particularly for small and medium sized businesses from the plastics sector."