Act Now or Extend Energy Support – UK Hospitality Calls for Urgent Ofgem Intervention

In a letter to Grant Shapps MP the Secretar y of State for Energ y Security and Net Zero, UKHospitality has reiterated the pressing need for OFGEM to take suppliers to task for their unscrupulous behaviour towards hospitality

If the Government is unable to do so, UKHospitality is calling for a three-month extension to the Energ y Bill Relief Scheme for sectors recognised as energ y intensive , and therefore vulnerable , and that hospitality should be among them

Almost half of businesses in the sector (48%) are contending with energ y bills fixed at record high prices during the height of the energ y crisis between July and December last year With Government suppor t significantly diminished from April, this represents a ‘terminal’ doublewhammy for the sector

UKHOSPITALITY IS URGING THE GOVERNMENT TO INSTRUCT OFGEM TO:

Enforce the renegotiation of contracts signed between July and December 2022, penalty-free , with the suppor t of deposits already taken

Enact full regulation of the non-domestic energ y market if suppliers are not willing to act

Reset security deposits to reflect falling prices and increase business liquidity

Introduce a Government-backed trade credit insurance scheme for sectors that suppliers perceive to be high-risk

In the letter UKHospitality Chief Executive Kate Nicholls writes: “Half the businesses in our sector will be locked into extor tionate prices as energ y suppor t is significantly reduced from April This could have a potentially terminal impact on thousands of businesses that are simply unable to afford their bills

“We appreciate that Government has had to take tough decisions to stabilise the nation’s finances, and that is why the onus has been put on OFGEM We welcomed this direction but have concerns about the extent of OFGEM’s powers and their ability to act at the pace necessar y to provide the suppor t businesses require

“We need to see OFGEM take action on non-commodity, ser vice and access charges, as well as security deposits and terms of supply, which undermines Government suppor t Evidence we have seen from businesses demonstrate refusals to supply, blanket risk applied to sectors, 600% increases in standing charges and widespread use of security deposits

“Without action, we believe the only alternative is to extend the Energ y Bill Relief Scheme – either across the economy or for specific sectors – for a fur ther three months