Energy puts the viability of half of SMEs at risk

The president of Pimec, Antoni Cañete, yesterday demanded the “immediate intervention of the energy market so as not to put at risk the viability of 50% of small and medium-sized companies in Catalonia”.

Thomas Osborne
Thomas Osborne
26 September 2022 Monday 00:52
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Energy puts the viability of half of SMEs at risk

The president of Pimec, Antoni Cañete, yesterday demanded the “immediate intervention of the energy market so as not to put at risk the viability of 50% of small and medium-sized companies in Catalonia”. This is one of the conclusions of the survey The impact of the energy crisis on SMEs, which Cañete presented yesterday together with Joan Vila, president of the energy commission, and Moisès Bonal, head of studies for the Catalan employers' association for SMEs.

In the current market conditions, only half of the companies can pass on the increase in energy prices in their final product, argues Pimec. "The increase in the CPI and the cost of energy has an impact on households and working people, but also on the viability of our companies, a relevant aspect when seeking solutions to the inflationary spiral," Cañete stressed.

The president of Pimec assured that disturbing situations are already taking place. For example, some companies have had to make partial production stoppages – 30% of SMEs have done so due to the price of gas, according to the survey. Others have given up some processes, for example bakers who give up making some types of bread so as not to manufacture at a loss. And there have also been cases of transferring production to the weekend to benefit from cheaper energy, according to Efe.

The president of Pimec also explained that "just as the pandemic accelerated the digital transformation of SMEs, we see that small and medium-sized companies show their firm commitment to the energy transition." The data shows that 80% of companies have carried out actions to reduce energy consumption, although most of these are low-impact investments, such as LED lighting. For this reason, Antoni Cañete demanded “urgent policies that encourage and facilitate the energy transition, focusing on the Next Generation Funds”.

Joan Vila explained that "with the progressive recovery of shipments by sea in the next twelve months, global transport will return to normal, a fact that will cause prices to fall back to levels prior to spring 2021." “Therefore – he added – if energy prices continue in the current dynamic, European manufacturing companies will not be able to compete with products manufactured in other regions of the world”. Cañete announced that Pimec will make a request to the president of the European Commission, Ursula von der Leyen, to extend the European carbon tariff on the border from 2023 to other sectors.