As winter approaches, many people are concerned that energy prices, and gas in particular, will increase significantly. Impacting hospitality businesses’ energy costs directly and reducing customers’ discretionary spending due to their own cost pressures.
Several events since the Russia-Ukraine conflict began have influenced the current energy market and could have implications for future costs:
- Russia’s invasion of Ukraine in March 2022 caused unprecedented spikes in electricity and gas costs. Markets were driven by fear of running out of gas for heating and electricity generation.
- Alternative sources of gas have come from Norway, by pipeline. The United States and Qatar have ramped up supplies of liquified natural gas (LNG) to Europe and Asia, replacing Russian supplies
- Record summer temperatures keep gas for cooling demand high, while Europe restocks gas reserves in time for winter, maintaining demand over summer.
- Several new sources of LNG will come to market over the next 18 months. In the face of muted demand, this is likely to lead to excess supply, driving gas costs nearer long-term average prices
- Asian demand for LNG is likely to remain stable as any increased Chinese industrial activity may be from met from increased levels of Russian pipeline gas.
How can pubs navigate these challenges?
- However, a cold spell at the start of winter will increase fears of higher gas demand, depleting reserves, again prompting fears of gas shortages leading to higher prices.
- While the commodity cost of energy looks favourable over the next few years. We continue to see increases in government levies and other costs, which are added to bills and which may offset any savings in electricity.
While the cost of energy has fallen significantly below the rates of 2 or 3 years ago. Pubs continue to face several challenges with energy:
Many pubs are subjected to repeated high-pressure sales calls. Increasingly calling from abroad, to avoid regulation, unscrupulous sales agents claim to be your supplier urging business owners agree a new contract. Sometimes promising to switch supplier and leave any debt behind. Such scams expose customers to several risks, including the contract being submitted with a fraudulent change of tenancy.
These callers emphasise the urgent need to act and typically only offer 1 or 2 suppliers and generally 3 – 5-year terms. These long contracts have large commissions, significantly increasing the customers energy costs. Increasingly these contracts come with T&C’s that if it doesn’t go live the broker will demand thousands in lost commission.
More generally, the conduct of suppliers leaves much for improvement:
Change of Tenancy (CoT) processes have become increasingly challenging for new and existing pub operators. Suppliers are now demanding a greater number of documents to complete CoTs, with delays in obtaining business rates certificates often creating lengthy hold-ups.
Nationwide Energy’s contracts team has taken a proactive approach by seeking out alternative forms of documentation, lodging complaints where appropriate, and escalating cases to the Energy Ombudsman when necessary. Alongside this, the contracts team continues to work closely with clients to ensure the required paperwork is gathered promptly, helping to reduce delays and mitigate the risk of being left on costly deemed rates.
Another recurring problem faced by pubs relates to billing errors and the widespread issue of back billing. By Ofgem’s rules, suppliers are only permitted to back bill for the last 12 months from the date of re-billing, with any earlier charges required to be written off. However, many suppliers continue to push beyond these limits, often compounded by incorrect meter readings or technical issues where smart meters are not billed correctly, leading to estimated bills.
Unfortunately, the customer service staff at the energy suppliers frequently lack the necessary knowledge or training, leaving customers caught in prolonged disputes and unhelpful correspondence. This is where Nationwide Energy Consultants’ Billing Team, with more than 38 years of combined expertise, adds real value. The team carefully reviews bills, advises customers on their rights, and when necessary, raises disputes with the Ombudsman to ensure suppliers adhere to Ofgem’s rules. Their support has proven vital in resolving complex cases and preventing businesses from being unfairly burdened with thousands of pounds in avoidable costs.
Nationwide Energy Consultants as a trusted partner can be relied upon to offer customer-focused advice. Offering the “Big 6” alongside smaller suppliers who have an offer well-suited to the needs of hospitality. In addition to:
- A team of regional consultants who can offer in-person advice.
- Every customer with a contract processing or a billing query has a named account manager who will keep in regular contact with you and give progress updates. The teams are often better trained and more experienced than the staff at the energy suppliers.
- Recently we have saved customers £28 - £52,000, where enormous catch-up bills have been presented by suppliers having under-estimated consumption for 2 – 3 years. Nationwide’s staff have successfully argued that suppliers must adhere to back billing forcing them to write the other debt off.
- Our renewals team will contact customers in their renewal period to provide a market review and a range of available options, giving you time to decide.
- We offer a range of hospitality-specific energy saving guides.
To take control of your energy, you can contact Nationwide Energy Consultants by telephone 02476 328995 or alternatively by email info@nationwide-energy.co.uk
To better understand current energy consumption and how your business can effectively manage and cut energy cost, Nationwide Energy Consultants offer a range of useful guides on their website: https://nationwide-energy.co.uk/free-guides-to-help-your-business/
Graph produced by Cornwall Insight in conjunction with Drax Energy Solutions, 24/09/2025