Many industrialists have revealed that they have avoided opening new factories because of the demand by many energy suppliers for up-front payments, according to an article published by the Guardian.
While the government has touted industrialists as having a big role to play in rebuilding Britain's economy, some companies are having to relocate their production plants abroad because of rising energy prices.
The British Ceramic Confederation revealed that some of its members have been asked to pay a deposit of up to Â£200,000 by energy firms in order to become a customer.
Chief executive of the British Ceramic Confederation, Laura Cohen stated: "Five of our members have closed in the last few weeks.
"Embers tell me they have seen their energy costs increase considerably in the last year, typically by 30 per cent or more, and in one case doubling. In addition, from 2013 they face a crippling array of climate-related taxes and costs in the UK through higher electricity (prices)," she added.
Steel plants, chemical plants, potteries and brickworks are amongst those that have been most effected by the rise in energy prices.
However, ScottishPower have moved to defend the need for up-front payments.
A spokesperson said: "Depending on the results of the credit assessment ScottishPower may require a security deposit in order to make an offer of a contact. To enter into a long-term commitment to supply power, it is prudent to be satisfied that the terms of the contract can be met."
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