BBPA: Suppliers deny new energy contracts to hospitality businesses as costs double

The Staff Canteen

the British Beer and Pub Association has warned that Hospitality businesses face150 percent price increases of on their energy bills compared to pre-pandemic levels, leading to the sector facing additional £800m costs

Furthermore, the BBPA believes hospitality businesses are being denied new contracts or renewals with energy suppliers, placing many under additional financial burden as they look to recover from the pandemic.

Throughout the course of the pandemic, the hospitality sector has faced an ongoing energy issue as prices have soared, and are set to continue doing so. Businesses are reporting an average increase in their bills above 100 perent, which across the sector is the equivalent of an £800m increase in costs.

The chief executive of the BBPA, Emma McClarkin, told Propel: “Struggling publicans that have managed to keep their heads above water throughout the pandemic now face a further financial hurdle that threatens the viability of their businesses and the ability for the sector to recover."

According to the BBPA, along with overly complicated application processes, risk premiums and significant up-front renewal deposits, there has also been an increase in the number of utility providers refusing to take on new accounts or renew contracts if they are linked with the hospitality sector.

Along with this, pub bosses are, according to CityA.M, also anticipating an increase in employer National Insurance contributions, a rise in the VAT rate, changes to business rate relief and an end to the rent moratorium - all of which will further damage the industry's ability to recover from the pandemic.

Emma added: "The pub and brewing sector is at a pivotal point in its recovery and the erosion of margins is impossible to sustain. We are urging the energy regulator, the providers and the government to work with us and take a more pragmatic approach with regards to the provision of energy to the hospitality sector.”

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The Staff Canteen

The Staff Canteen

Editor 4th March 2022

BBPA: Suppliers deny new energy contracts to hospitality businesses as costs double