Trade braced for energy price hikes

By Tony Halstead

- Last updated on GMT

Related tags: Cost, Electric charge, British gas

British Gas: 35% increase in charges
British Gas: 35% increase in charges
Licensees and operators have been warned to expect big energy price rises with other suppliers set to follow British Gas's massive 35% charges hike....

Licensees and operators have been warned to expect big energy price rises with other suppliers set to follow British Gas's massive 35% charges hike.

Bills for gas and electricity could soon account for the third biggest overhead cost of some pub businesses, a trade leader has warned.

The Forum For Private Business said the era of cheap utilities for small firms was at an end, as the UK increasingly relies on foreign energy imports from Europe.

Federation of Licensed Victuallers chief executive Tony Payne is advising licensees to act before their current energy contracts expire.

"Hosts have got to read the small print on their contracts and take action to secure new deals well in advance, and they have got to spend time shopping around to get the best deal," he said.

"For some pubs, utility costs will soon be the third biggest outlay in the business after beer and rental payments."

Pub operator Mitchells of Lancaster has revealed that it has been hit by a 53% increase in electricity charges after re-negotiating with its supplier.

"We are being landed with an extra £100,000 per year for our 18 managed houses but there is not much we can do about it," said joint managing director Jonathan Barker.

"It's now a case of introducing as many efficiency measures as we can, but the increase could make a number of our managed houses very marginal."

Related topics: Other operators

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