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Utility prices set to rise again

As you are aware in 2012 Gas and electricity prices increased again.

You may not be aware of exactly how much so here our run down of the energy suppliers rate increases in August 2012:

Energy Supplier Average Price Change Effective from
British Gas Up 6% 16th Nov 12
EDF Up 10.8% 7th Dec 12
EON Up 9.4% 18 Jan 13
Npower Up 8.8% 26th Nov 12
SSE Up 9% 15th Oct 12
Scotish Power Up 7% 3rd Dec 12

 Source: Which.co.uk (http://www.which.co.uk/switch/energy-advice/energy-prices-qanda)

Water Rates

Over the past decade, average water bills have soared by up to 82% – double the rate of inflation over the same period.  Ofwat are due to set the agreed water rates in 2014 for the next 5 years.

Ofwats website details the Total Percentage Change in 2011/12 to be between 3.4 and 7.8%. 2013/14 indicative rates are estimated to increase by 3.3% and 5.3%.

For a detailed look at the water rates see the Ofwat Website:  www.ofwat.gov.uk

NRTCA summary

Costs such as water, electricity and gas are all set to rise above the rate of inflation.  Coupled with the historic data, the tanker cleaning industry is experiencing sustained extreme cost issues. Fixed rate deals with your suppliers, may stem the flow, but as the price of wholesale gas soars, locking yourself in to a longer term deal may not be the answer.  

Smarter ways to save water should be considered. The leading authority on water efficiency in the UK - Waterwise - offer some ideas on how to minimise water usage, but as yet the cost of investment in recycling used tank wash water outprices its potential cost benefits.

It seems that efficiency drives and shopping around are a pre-requisite for any business in the tankcleaning sector, but once wage increases, rent and general inflation are included in the calculation, tankcleaning businesses are unlikely to escape with less than a further 8% - 10% being added to their base operating costs.

While members have different cost structures, attention should be focussed on improving efficiency while appropriately reflecting these anticipated increases when considering their 2014 business plan.