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Trade Bodies Call for Urgent Government Intervention on Unfair Energy Costs and Contracts
by CLH News
Since the beginning of the energ y crisis, members of the trade organisations have faced a raft of businesscritical challenges, with 50% being forced into contracts between July and December 2022, in an uncompetitive market when energ y prices were at their highest
Hospitality trade bodies the British Beer & Pub Association (BBPA) UKHospitality (UKH) and the British Institute of Innkeeping (BII) have written to Amanda Solloway MP, the Minister for Energ y Consumers and Affordability, calling for urgent Government suppor t for hospitality businesses on the brink of collapse
Ofgem, the industr y regulator has investigated evidence from hundreds of pubs and hospitality businesses, showing the unfair nature and length of contracts, sky high standing charges and management fees, and aggressive sales tactics by some energ y suppliers, but the action taken so far has been too little , and for many will be far too late
A SPOKESPERSON FOR THE TRADE BODIES STATED:
“Following any meaningful Government suppor t tailing off at the end of March, operators now face bills between three and four times higher than in 2021 locked into contracts that are destroying their otherwise viable and vibrant businesses
“We have been engaging with Government Ministers and officials, as well as Ofgem, for over a year now, sharing the often-immoral behaviour of energ y suppliers, whose actions have plunged pubs and hospitality businesses into debt and uncer tainty Domestic customers have been protected to some extent, but small businesses suppor ting families and communities have been left exposed to untenable costs and contracts, threatening livelihoods the length and breadth of the UK
“Ofgem’s limited powers leave it unable to inter vene in contracts between these suppliers and hospitality businesses We are calling urgently on Government to step in and take action to save essential community hubs and thousands of jobs from being lost forever View the letter here
