The NBRA has written to the Chancellor of Exchequer on Tuesday 30 August, urging government support to the vehicle repairers who have been affected by the steep increase in energy prices.
The Automotive industry is facing utility bills that have risen by more than 250% in the past year. Utility costs are expected to increase from 12-15% of total body shop expenses last year to 30-33% in the year ahead. A threefold increase in electricity prices will wipe out more than the profit margins of NBRA members. For body shops that survive next year, their profitability and ability to invest will be significantly reduced.
“The nature of our work means that we are high users of electricity and gas. We estimate that the average body shop uses 160,000kWh/year of electricity and 400,000 kWh/year of gas, which equates to bills of £65k total in the year to June 2022“, said Chris Weeks, Executive Director of the National Body Repair Association (NBRA).
Weeks continued: “In our industry, prices tend to be reset by energy companies every October and we expect the moment of maximum risk to follow the resetting of prices. We anticipate that energy costs for a typical body shop will increase to £120k and £72k (£192k total) for the year ending Oct 2023. Of course, we have many members with larger shops that will actually double those numbers.”
“We think that providing a temporary subsidy to electricity users will be a better use of taxpayers’ money and a more effective way to enable the functioning of the electricity market than imposing a temporary price cap. NBRA has requested a meeting with Rt Hon Nadhim Zahawi MP, Chancellor of the Exchequer and we have also written to the Business Secretary, Transport Secretary and the two leading Conservative leadership candidates on the matter.”
NOTES TO EDITORS
Annaluce Cavalmoretti, RMIF Communications Assistant
Direct: 0207 307 3410