New survey shows 'devastation' of soaring energy costs

By Rebecca Weller

- Last updated on GMT

Unsustainable hikes: new research shows 'devastation' caused by energy bill increases (Credit: Getty/Eoneren)
Unsustainable hikes: new research shows 'devastation' caused by energy bill increases (Credit: Getty/Eoneren)

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New collaborative research from trade bodies across the sector demonstrates the extent of “devastation” caused by energy costs.

The joint Q1 Hospitality Members Survey​ by UKHospitality (UKH​), the British Beer & Pub Association (BBPA), the British Institute of Innkeeping (BII​) and Hospitality Ulster, revealed 82% of respondents expected to see a rise in their energy bills when Government support is reduced​ in April.

Moreover, businesses predicted their energy bills would soar by 101% this quarter compared with the same period last year, a point UKH chief executive Kate Nicholls recently raised with the Business, Energy and Industrial Strategy Committee.

Unsustainable hikes 

In a joint statement, the organisations said: “Hospitality businesses and representatives have consistently warned the exclusion of the sector from additional energy support means venues are facing unsustainable hikes in their energy bills.

“These survey results reinforce those warnings​, demonstrating the extent of this energy devastation on venues with bills set to almost double as a result of support significantly reducing. Arriving on top of the 101% increase compared to this time last year, the hit to the sector could not come at a worse time.

“Despite continually raising the alarm over energy suppliers’ unscrupulous behaviour during this crisis, we continue to see these companies relentlessly pursue excess profits at the expense of hard-working businesses and undermining the Government’s significant investment.”

The survey also bolstered concerns​ raised by the sector regarding the behaviour of energy suppliers​, with 56% of those surveyed reporting increased standing charges.

Additionally, 42% reported a reduction in opening hours per day while 34% of operators had reduced the number of days they open per week.

Tough times 

This comes as a poll of 300 members of the Night-Time Industries Association (NTIA)​ revealed 48.4% of operators were barely breaking even while 51.6% expected energy increases of at least 100% when the Energy Bill Relief Scheme​, set to replace the Energy Bill Support Scheme, is implemented.

The statement continued: “November demonstrated the role hospitality can play in delivering growth​, even during tough times, but we need to see this recognised by Government action; by reigning in energy suppliers and their poor conduct and unlocking hospitality’s potential in the Spring Budget.

“The dramatic increases we are seeing in energy prices shows the desperate need for support and investment in hospitality, if our sector is to survive the current crisis and go on to deliver consistent economic growth, create jobs and reinvest in our local communities​.”

 

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