KBzine: the original kitchen and bathroom industry e-news - since 2002
28th January 2021
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The Kitchen Bathroom Bedroom Specialists Association has warned that an energy surcharge applied by large multi-national material producers is creating additional costs in the supply chain and playing havoc with kbb retailers' pricing levels.
"It is unfortunate that this Energy Surcharge is being applied at a time when retailers have to look so hard at all of their costs," commented Graham Ball, CEO of the KBSA. It is an unnecessary extra burden to businesses at such a difficult and critical time.
"The Energy Surcharge is reviewed every quarter, which means that it can continually change and this is proving very difficult for KBSA retailers to know what level of extra costs will be passed on.
"We would urge these product manufacturers to re-look at this issue and to investigate a better and fairer system that will provide more certainty for smaller businesses further down the chain."
The European Energy Surcharge was first introduced in 2004 as a result of increasing global oil prices and is applied to glass, steel and other building products. It was originally regulated by the IPE Brent oil price. However, in 2008 it became apparent that part of the oil price was determined by current exchange rates, which is now also taken into account.
It strikes me that with the global economy the way it is at the moment and some strategists still warning that the danger of a 'double-dip' recession has not yet passed, anything that can be done to help companies - and particularly small businesses - plan ahead and ensure that their cash flow is not jeopardised, will be most welcome.
And talking of boosting cash flow, don't miss our story: 'Lifeline for firms with just one week left to claim backdated small business rate relief' in this week's news. It might just save you some money...
John and I are visiting 100% Design later today. If you're unable to get along to the show at Earls Court before it ends on Sunday, you can read all about it in next week's KBZine.
Yours,
1st October 2010