Hospitality energy bills to almost double once support falls away
The joint Q1 Hospitality Members Survey by UKHospitality, the British Beer and Pub Association, the British Institute of Innkeeping and Hospitality Ulster notes that businesses already expect energy bills to be 101% higher this quarter, compared to the same period in 2022.
A further 82% rise is then expected once the support falls away; meaning energy bills will have almost tripled for some hospitality businesses since the beginning of last year.
Wholesale gas and electricity prices are currently fixed for all non-domestic customers under the Government's Energy Bill Relief Scheme, which came into effect in October.
However, from April this will be replaced by a scaled back Energy Bills Discount Scheme, which will see firms get a discount on wholesale prices rather than costs being capped.
In a joint statement, the four trade bodies said: “Hospitality businesses and representatives have consistently warned that the exclusion of the sector from additional energy support means venues are facing unsustainable hikes in their energy bills.
“These survey results reinforce those warnings, demonstrating the extent of this energy devastation on venues with bills set to almost double as a result of support significantly reducing. Arriving on top of the 101% increase compared to this time last year, the hit to the sector could not come at a worse time.”
The survey bolsters concerns raised by the sector about the behaviour of energy suppliers inflating quotes, without justification, with 56% reporting increased standing charges.
Hikes in bills are already significantly affecting trading in the sector, with 42% of businesses reducing opening hours per day and 34% reducing the amount of days they open per week.
“Despite continually raising the alarm over energy suppliers’ unscrupulous behaviour during this crisis, we continue to see these companies relentlessly pursue excess profits at the expense of hard-working businesses and undermining the Government’s significant investment,” the trade bodies continued.
“The dramatic increases we are seeing in energy prices shows the desperate need for support and investment in hospitality, if our sector is to survive the current crisis and go on to deliver consistent economic growth, create jobs and reinvest in our local communities.”
