Rising energy price warnings to government from business leaders in East

Glass manufacturers, such as Langham Glass in Fakenham, Norfolk, have been particularly hit by the rise in energy prices

The high rise in energy costs is hitting companies hard and action is needed by government, business leaders in the east of England have warned.

The rise in gas prices in recent weeks has hit firms - particularly energy intensive businesses involved in steel, cement and glass.

Vic Annells, chief executive of the Cambridgeshire Chambers of Commerce, has called for companies to be helped.

The government said it was working to help manage the impact of price rises.

This week Goto Energy has become the latest UK energy firm to cease trading amid a sharp rise in wholesale gas prices.

A chambers of commerce has called for more help for businesses

The unprecedented increase in global gas prices - which have risen 250% since the start of the year - was putting financial pressure on suppliers, said regulator Ofgem, as well as increasing the cost of gas to businesses.

A price cap helps domestic users of energy, but there is no such safeguard for businesses, which have to absorb the full impact.

Mr Annells said: "Any increase in cost is going to have to either be passed on to the consumer, to their customers, or it's going to result in some of the companies not being able to survive.

"That, for us, would be the worst of thing, because that means people will lose their jobs."

'Mistake'

He added: "We've said to government... we want them to do something to help protect the business environment for smaller and medium sized companies.

"What we want is a price cap, in the same way the government has provided a price cap for domestic consumers."

Jonathan Miller, managing director of Langham Glass based in Fakenham, Norfolk, said when he saw the latest prices for energy he "thought they had made a mistake". His fuel costs have shot up by 50%.

Jonathan Miller, managing director of Langham Glass, said the prices of its products needed to stay affordable

"We thought there would be a reasonable increase in price, but when they told me the figures I had to double-take and make sure that I heard it correctly," he said. "I was astounded."

He said the firm needed its products to stay affordable and so would not be able to pass on a lot of the energy price increase to customers.

"This is everybody's livelihoods. It's a worrying time," he said.

A Department for Business, Energy and Industrial Strategy spokeswoman said: "While the energy price cap remains in place to protect consumers this winter, we are in regular contact with Ofgem and business groups to explore ways to manage the impact of high global gas prices.

"Ultimately, our exposure to volatile global gas prices underscores the importance of our plan to build a strong, home-grown renewable energy sector to further reduce our reliance on fossil fuels."

Politics East airs on BBC One in the East on Sunday, 24 October at 10:00 BST and will be available on the BBC iPlayer afterwards.

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