CPI head of environment David Gillett said the industry was buying on the spot because forward prices had soared. "Our members have had no choice," he said.
Over the past few weeks gas prices have quadrupled to 1.70 per therm. An increase of 1p per therm is estimated to cost the UK papermaking industry 6m.
CPI gets behind energy users
The Confederation of Paper Industries (CPI) has rebuffed Government claims that energy users who buy gas on the spot market are responsible for their predicament.
