The BPF welcomes the findings of the EU Commissions investigation into energy markets.

The British Plastics Federation welcomes the findings of the EU Commissions investigation into energy markets. The Federation wrote to the Competition Commissioner Neelie Kroes last summer, itemising concerns about the effect on the UK plastics industry of huge +50% increases in energy costs twelve months ago.

The Commission found that high prices could not be explained by oil and taxation policies alone. This hints at evidence of collusion. Were it to be proved, energy firms could be exposed to fines of up to 10% of their world turnover.

Peter Davis Director General of the BPF said one rapid consequence of this report is that artificially inflated prices for energy will fall. Britains gas suppliers are currently being much criticized for failing to pass onto customers the 40% drop in wholesale gas prices that have occurred in the last six months. This could lead to a competition inquiry here.

The Commission will now push for enhanced powers for regulators, and the Commission itself. Davis commented this is welcome but it is unlikely that it will be quickly implemented.

we had also raised with Neelie Kroes the anti competitive aspects of the UK Climate Change Levy. On packaging this rewards the high energy usage of traditional materials with an 80% discount, whereas plastic packaging, which is not energy intensive to produce, has to pay the full tax said Davis.

The BPF also welcomes the EU Energy Strategy. The Plastics industry only consumes 4% of the worlds oil production. The rest is used for transport and energy.

Plastics offer many energy solutions:
- Plastic parts - lightweight cars and aircraft, giving fuel savings.
- Plastics lightweight packaging, saving on space and fuel.
- Composite plastics are used in windmill rotors.
- In homes EPS insulation and PVC-U double glazing prevent heat loss.
- Unrecyclable used plastics can be sent to energy from waste incineration, to provide much needed home grown UK energy.

ENDS

For further information on this press release, please contact Thom Lant, British Plastics Federation, 6 Bath Place, Rivington Street, London, EC2A 3JE, tel 020 7457 5032, fax 020 7457 5001, email: [email protected]

Notes for editors
1) British Plastics Federation (BPF) is the UK trade association for the plastics industry – representing the whole supply chain including polymer producers, distributors, additives suppliers, machinery manufacturers, processors and recyclers.