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Hospitality group urges government to intervene on energy cost pressures
48% of the business sector is contending with high energy bills.
UKHospitality is calling the government to take to task energy suppliers or failing that, an extension on the Energy Bill Relief Scheme.
In a letter to Grant Shapps MP, the Secretary of State for Energy Security and Net Zero, UKHospitality has reiterated the pressing need for OFGEM to take suppliers to task for their unscrupulous behaviour towards hospitality.
If the government is unable to do so, UKHospitality is calling for a three-month extension to the Energy Bill Relief Scheme for sectors recognised as energy-intensive, and therefore vulnerable, and hospitality should be amongst them.
“Half the businesses in our sector will be locked into extortionate prices as energy support is significantly reduced from April. This could have a potentially terminal impact on thousands of businesses that are simply unable to afford their bills,” UKHospitality Chief Executive Kate Nicholls wrote in the letter.
“We appreciate that Government has had to take tough decisions to stabilise the nation’s finances, and that is why the onus has been put on OFGEM. We welcomed this direction but have concerns about the extent of OFGEM’s powers and their ability to act at the pace necessary to provide the support businesses require.
“We need to see OFGEM take action on non-commodity, service and access charges, as well as security deposits and terms of supply, which undermines Government support. The evidence we have seen from businesses demonstrates refusals to supply, blanket risk applied to sectors, 600% increases in standing charges and widespread use of security deposits.
“Without action, we believe the only alternative is to extend the Energy Bill Relief Scheme – either across the economy or for specific sectors – for a further three months.”
UKHospitality is the authoritative voice for over 750 companies operating around 100,000 venues in a sector that employed 3.2 million people prior to COVID. The body speaks on behalf of a wide range of leisure and ‘out-of-home’ businesses, from FTSE 100 enterprises to niche groups and independent single-site operators, as well as 6,000 affiliated operators.
