The Power Struggle

Act now to tackle the energy crisis

By Ed Bedington

- Last updated on GMT

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With volatile energy costs and operators locked into sky-high deals, the Morning Advertiser has teamed up with UKHospitality to launch a campaign, The Power Struggle, to ensure the industry is heard loud and clear as part of a consultation process.

Industry regulator Ofgem has launched the consultation to assess support for a number of recommendations it is proposing to regulate the energy market for businesses.

As part of that process, UKHospitality is urging Ofgem to make five changes to ensure a more sustainable environment for businesses across the hospitality spectrum.

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The five demands are that Ofgem should:

  1. Move rapidly to fulfil its recommendation to encourage suppliers to work with hospitality businesses to resolve issues many are facing with prices fixed at levels far above current market rates. This should include direct, immediate communication to suppliers from Ofgem.
  2. Urgently enact its proposed changes to offer greater transparency to customers, deliver more timely responses to customer complaints and drive better practice in setting deemed rates.
  3. Deliver wider access to the energy ombudsman to redress the imbalance of power between energy suppliers and businesses, which currently lies too heavily with the suppliers.
  4. Put in places measures to prevent the blacklisting of entire sectors, particularly hospitality, as this dramatically reduces competition and unfairly penalises businesses.
  5. Improve regulation of energy brokers, including extending protections to more businesses, the introduction of a formal redress scheme and greater transparency around fees.

Act now

Kate Nicholls, UKHospitality chief executive, said: “Ofgem need to hear from you about why implementing these changes quickly are so important, delivering for your business in both the short- and long-term.

“By Wednesday 6 September, we are asking everyone to respond to the consultation, outlining their support for Ofgem to rapidly implement its recommendations and sharing how fast action in these areas will help you now.

“It is critically important that, as a sector, we demonstrate clearly to Ofgem that we support these recommendations and that rapidly delivering on them is critical to the future of hospitality businesses and the sustainability of the energy market.”

Ed Bedington, editor of the MA, added: “This campaign is key to ensuring that our industry is heard on this crucial issue. The energy crisis has caused huge damage to what otherwise would be a viable sector, driving inflation and pushing businesses to the brink.

“It has never been more important to embrace the opportunity this consultation presents. Let’s not just shout the odds on social media, let’s take some meaningful action to drive real change into a broken market.”

For more information on the consultation and how you can contribute visit the UKHospitality website here​.

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