Trade body Offshore Energies UK has urged its members to pay bills on time to support the country’s supply chain.
At the group’s Share Fair in Aberdeen chief executive David Whitehouse told attendees: “At a very basic level, we must make sure we pay our bills on time.”
The latest data from the UK regulator, the North Sea Transition Authority, showed that in 2022 more than 100,000 invoices that were issued to operators were paid late.
It is understood that invoices issued to supply chain firms also form part of the issue, however, there is a lack of data regarding this.
This followed disappointing results from 2021, then NSTA chief executive Andy Samuel said that the regulator was “happy” to step in and look through the data in the most “egregious” of late payments.
The figures show 477,000 invoices were received in 2022, with 25% paid late, prompting concern from trade unions.
Unite the Union’s regional officer, John Boland told Energy Voice in January that inconsistent payment times have been an “ongoing issue” and can impact continuity of employment for those working for smaller supply chain firms.
He explained: “The knock-on effect to this, is a lack of continuity of employment for the workforce, and we have a continuous cycle of redundancies and rehiring, which is detrimental to both employers and the workforce.”
© Supplied by Euan DuffOEUK’s David Whitehouse called attention to this and instructed firms to “balance risk and reward in our tendering.”
Mr Whitehouse told delegates: “We must make sure that our tendering processes are efficient and that they are open to real innovation.”
Event attendees heard that despite the industry facing “political winds that we need to address,” these measures are achievable and something that OEUK monitors and aims to improve through its Supply Chain Principles.
Mr Whitehouse added: “Supply chain companies are no doubt the backbone of the UK offshore energy industry.”
Following the improved, yet still disappointing, results last year, an NSTA spokesperson said earlier in the year “there is still plenty of room for improvement” and it will continue to press “lagging operators”.
It is understood that data for 2023’s invoice payments will be shared by the regulator later in the year.
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