"There is a feeling of chill in the economic air." Those were the words of the Bank of England governor Mervyn King last month, explaining that prices had risen to a record high, with inflation at 5 per cent and unlikely to fall in the next year. The cause? Rising energy prices, he said.

And national, independent and local authority run museums are all beginning to feel the pinch.

Victor Middleton's 1998 report, New Visions for Museums in the 21st Century, found that it was medium-sized local authority and independent museums that were the most economically vulnerable because of their high costs in areas such as staff and energy bills.

Museums are now using words such as "alarming", "frightening" and "worrying" to explain how the continuing rise in energy costs is making them feel.

Bill Ferris, chief executive of Chatham Historic Dockyard, faces rises of 47 per cent on gas and an excruciating 80 per cent on electricity bills. Because of the size of the dockyard, Ferris estimates this will add £80,000 to running costs annually.

Museums in old buildings that guzzle fuel are bracing themselves. Tim Desmond, chief executive at the Galleries of Justice in Nottingham, says costs are already up by £1,000 a month and are expected to rise by another 35 per cent.

Added to this are rising insurance costs (partly as the result of the floods last year) and increased waste management costs. One of the side effects of the current economic climate is that there has been a fall in visitor figures in some areas.

VisitBritain recorded a 7 per cent drop in the number of tourists from North America in April, May and June of this year. And the Association of Independent Museums (AIM) says its members are reporting that visitor figures are down by 5-10 per cent on what they would expect for this quarter.

On the bright side, there have been reports that the number of Britons heading abroad is falling. These changing holidaying patterns may be an opportunity for the UK's cultural attractions. Poor exchange rates coupled with a rise in petrol prices mean people are more likely to look locally for things to do.

But Ferris says the way for museums to empower themselves is to review the operation of their organisations. It helps, says Ferris, to have a diversity of income streams and to be able to spread costs. He says there is often the temptation to pass rising costs on to the customer, but that is likely to have a detrimental effect on visitors.

For organisations undergoing capital projects, Ferris says there is now more opportunity to barter with contractors keen to give favourable prices in a dying housebuilding market.

At Chatham, they are undertaking a review of the energy strategy. Ferris has commissioned a study into harnessing the neighbouring river to produce electricity. With his chairman of AIM hat on, he says that museums need to invest more in green heating systems - but cannot do it alone. AIM is calling for a sector-specific sustainability fund.

But there are other ways to curb carbon usage. More obvious endeavours can often be overlooked. The National Trust has spent the past 15 months replacing 40,000 lightbulbs with low-energy alternatives across its properties. This will save £431,000 a year in energy and maintenance spend.

The Roald Dahl Museum and Story Centre in Buckinghamshire spent last year tracking energy use and is now implementing new energy, waste and recycling practices. Director Amelia Foster admits that this carbon-cutting exercise is a "personal soapbox" and adds that it often depends on the interests of management for changes to be implemented.

So what happens if, as some fear, there is a full-blown recession? Arts and Business is optimistic. A spokesman says that should the economy plummet into recession, the arts world is in a healthier position than in previous downturns.