Huge energy price hikes threaten pubs

Related tags Npower Energy conservation

Licensees are expecting big hikes in gas and electricity prices following news that Npower has increased rates for domestic users by about 15%....

Licensees are expecting big hikes in gas and electricity prices following news that Npower has increased rates for domestic users by about 15%.

Npower, the first major supplier to announce its annual price increases, attributed the rises for domestic users - 12.7% for electricity and 17.2% for gas from 5 January - to "dramatic" hikes in wholesale energy prices.

However, the majority of pubs using Npower can breathe a sigh of relief after the supplier confirmed that it is freezing gas prices for businesses this year.

But some Npower pub cust-

omers will not be so lucky. Electricity prices have also been frozen for 85% of Npower's business customers - and the remainder will see energy costs rise by a massive 21.5%. Npower was unable to confirm which businesses will be included in this number.

Wholesale prices have increased by 66% for electricity and 60% for gas since February 2007, Npower said.

Energy consultant Mike Higham of Pro Eco said: "For new contracts, the anticipation is that we will have significantly higher prices. It's a bandwagon now. Other prices will rise in line [with Npower's].

"The rate of increase is the thing that concerns me. I think it will take two to three weeks to see what all the other big players do."

Energywatch campaigns director Adam Scorer said: "Energywatch calls on other suppliers to respond to current high wholesale prices by competing over the long term with good value products, and not to simply load the risk of wholesale prices on their own customers."

Following the announcement of Npower's price hikes, Chancellor Alistair Darling has written to energy regulator Ofgem asking for prediction of future trends in the energy market and the effect on prices.

Punch trial achieves energy saving of 6.5%

Punch says a trial at 51 Spirit pubs led to a 6.5% energy saving in a year.

Punch invested £1.5m in smart meters. Managers were given half-hourly updates on gas, electricity and water usage. Punch's "carbon management team" examined the results and took the necessary action, which included extra insulation as well as improvements to outside lighting.

The pubco has also produced a video on how managers can lower carbon emissions. The trial found that one pub has the same energy consumption as 16 homes.

Punch said its new Burton HQ, to open in 2009, will be environmentally friendly to grade four - the highest is grade five.

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