The price of energy has been a major concern for innkeepers, especially Emma Shepherd, who owns the Blue Ball Inn in Sheffield. The 52-year-old has been hit with a 600% increase in standing charges, with one supplier requesting that the daily fee increase from 29p to £4. UK Hospitality stated that these fees were imposed on restaurants, pubs, and bars without any justification or explanation.
Costs associated with wider networks used to transmit and distribute energy, as well as suppliers going bankrupt when wholesale prices spiked, contribute to this increase. In addition, businesses are not covered by an energy price cap that limits the amount per unit of energy that suppliers can charge. Since October, under government support, wholesale electricity and gas prices for pubs and many other businesses have been capped in an effort to protect them from a spike in energy costs. However, this assistance will be reduced beginning in April.
Mrs. Shepherd survived Covid lockdowns, restrictions, and the energy crisis because she had a fixed gas and electricity contract. When she went to renew, however, her current provider only offered her a variable contract with a daily standing charge of £4, up from 29p previously. The price per unit of energy has risen from 15 pence per day to approximately 37 pence per day. This would result in annual expenses of up to $17,000, up from between $8,000 and $10,000.
Chris Jowsey, CEO of Admiral Taverns, demanded that energy companies be held accountable to “ensure that they are not profiteering.” The National Audit Office accused energy watchdog Ofgem of allowing a market vulnerable to large shocks to develop last summer. Hospitality industry leaders have requested that the government instruct Ofgem to allow renegotiation of energy contracts signed when prices were higher last year.
Ofgem stated that ensuring customers paid a fair price for energy was its top priority and that it was evaluating whether action was required. The government stated that Ofgem’s review will consider whether the regulator requires additional authority. According to the report, the energy support for businesses resulted in their paying approximately half of the predicted wholesale energy costs this winter.
Emma Shepherd, the proprietor of the Blue Ball Inn near Sheffield, is one of the landlords across the nation who are feeling the strain of rising energy costs. She has witnessed a 600% increase in standing charges, with one supplier requesting that the daily fee increase from 29p to £4. The government is providing some assistance in the form of assistance fixing wholesale electricity and gas prices until April, but after that, the future is uncertain. Chris Jowsey, the CEO of Admiral Taverns, has demanded that energy companies be held accountable, and Ofgem is currently evaluating whether action is necessary.
