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Business anger grows over power cuts

Power cuts are sparking growing protest from angry businesses.

Now Business Voice West Midlands has written to energy regulator Ofgem asking what is going on.

There has been concern for some time that breakdowns are happening more frequently.

And a series of surveys co-ordinated by BVWM has again highlighted the issue.

West Midlands Chambers of Commerce found that 63.7 per cent of firms responding had experienced power cuts during the last two years, many several times over, causing considerable disruption.

Most claimed they were never told what the problem was, had never been advised how best to prepare for a power cut, and did not have a back-up generator.

All 28 companies in an online survey for BVWM and the Institute of Chartered Accountants in England and Wales reported having suffered a power cut in the past two years. A quarter had suffered up to ten power cuts; over a third even more.

The effects had been damaging and included disrupted production and trading, subsequent equipment problems, loss of productivity, increased operational costs and a negative impact on customers.

Similarly, the British Ceramic Confederation cited examples of badly affected businesses:

• A Cannock company which had suffered up to five power cuts in the last two years which knocked production and affected productivity.

• A factory in Newcastle under Lyme had suffered up to five power cuts over the last two years.

• A Coventry concern which reported that a loss of power would typically result in a one hour stoppage.

In his letter to Ofgem chief executive Alistair Buchanan, BVWM Executive Director James Watkins said: "Power cuts in parts of the West Midlands region are becoming a feature that is being felt more and more by businesses.

"These power cuts are affecting everyday operations, are increasing costs and impairing competitiveness."

Highlighting apparent contradictions between the surveys and official statistics, he went on: "We appreciate that the details do not seem to relate to the figures produced by Ofgem in respect of power cuts in the West Midlands region.

"We would be grateful, therefore, if Ofgem could provide us with data for power outages for the East and West Midlands and how these are broken down."

In particular BVWM has asked for details of planned outages, interference, environmental conditions or other explanations.

 

 

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Article published by Midlands Business News on 08/02/2010 13:49:25

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