Energy costs look set to fuel drinks price hike

Spiralling energy costs look set to force licensees into slapping hefty increases on the price of a pint this year.

Gas and electricity bills rose by 15% last year but British Gas managing director Mark Clare suggested this year's increase could be substantially higher - because wholesale gas prices are 70% up on last year.

The news will come as a bitter blow to licensees who were forced to up beer prices by a record 10p a pint last year due to a steep increase in overheads such as new rateable values, minimum wage rates, licensing costs and fuel. Although those tied in to fixed-price contracts will be unaffected for the time being, many are now bracing themselves for the annual brewery increases due in February.

"Beer prices will be forced up anyway by brewers as their gas, electricity and delivery costs will increase," said Eamonn Kemp, host at the Radnor Arms in Corston, Wiltshire. "I expect we will also be hit in the budget."

Alan Willis of the Nelsons Retreat in Vince Street, London, said ultimately the customer would have to pay. "Our margins will have to stay the same," he said. "We have to make what we do now. We are very high energy users as an industry. Something like cooling beer takes a hell of a lot of gas."

Tips for improving efficiencyEnergy-saving light bulbs are 20% more efficient and last 12 times as long.

Put labels on kitchen equipment saying turn me on at... and turn me off at...

Take regular meter readings to ensure you are paying for what you have used.

Heating bills can be cut by 10% by turning the thermostat down by 1ºC.

Be aware of when your contract comes up for renewal to avoid hefty charges.

Be wary of doorstep salesmen offering to cut power bills by 30% - 99 times out of 100 you won't save.

For further information visit www.hospitableclimates.org.uk,

www.est.org.uk or www.energywatch.org.uk