It’s 1st April tomorrow, but for many publicans and bar owners it will be no joke when they look at their next energy bills with government support ending.
Earlier this year, a survey of BII (British Institute of Innkeeping) members revealed that 50% were forced into signing contracts at the peak of energy prices between July and December 2022.
With meaningful energy support from government falling away for the vast majority of pubs from tomorrow, they are now facing a cliff edge of energy costs, alongside the surge in inflationary pressures in every area of their businesses.
As bricks and mortar businesses at the heart of their communities, they can only reduce their usage so much, with energy intensive kitchens and cellars, as well as the need for their bars to be warm and welcoming for their customers.
Without the ability to renegotiate contracts with suppliers that were signed in an unfair and uncompetitive market, many are facing bankruptcy, despite consumer confidence and turnovers growing in recent times.
The BII has written to Ofgem demanding urgent action to tackle energy suppliers who are crippling fragile pub businesses across the UK.
Emma McClarkin, chief executive of the British Beer and Pub Association, noted: “Pubs across the country are on the edge of closure due to extortionate energy costs and absolutely nothing is being done to stop it.
“Business owners are dreading the end of the Energy Bill Relief Scheme, with the average pub needing to increase their turnover by 11% overnight from 31st March to 1st April just to break even.
“It isn’t right that suppliers are now paying less for energy, and yet small, community-minded pubs are still being forced to pay inflated rates to heat their buildings and keep their lights on.
“Pubs are completely out of options and are reducing staff and opening hours to try and save money, but even that is not enough because the energy costs are so incredibly high. The government must step in and insist suppliers offer renegotiations for businesses trapped in outrageously expensive contracts or risk many facing ruin in the coming weeks and months.”
