CAMRA calls for probe into energy companies’ treatment of pubs

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CAMRA calls for probe into energy companies’ treatment of pubs

Consumers, brewers and pub companies have joined forces and called for an urgent government inquiry into the energy sector and its treatment of pubs and breweries.

CAMRA national chairman Nik Antona (pictured) said: “Huge increases in prices, fees and charges for pubs and breweries have effectively cancelled out the government’s help with bills for many businesses, putting the future of many of our much-loved locals at risk as they struggle to make ends meet.

“Parliament and government should urgently investigate any unfair treatment of businesses in the beer and pub sector by energy companies and take action to make sure that licensees and brewers know how much their energy bills are going to be each month. Those bills must be fair and without unreasonable extra fees, charges or up-front deposits added on.

“Given that many businesses haven’t had the reduced energy costs they were expecting as a result of this behaviour by energy companies, CAMRA is urging the chancellor to use his Budget in March to announce more support with energy bills to help save the UK’s world-renowned pubs and breweries. The chancellor also needs to cut duty on beer and cider served in pubs by 20 per cent and make the business rates system fairer if our locals are to survive this cost-of-doing-business crisis.”

The British Pub & Beer Association (BBPA) says the Treasury and Business Select Committees must conduct an urgent inquiry into worrying reports of poor conduct from energy suppliers.

Accusing the energy companies of profiteering, the BBPA said the government’s Energy Bill Relief Scheme was intended to bring down energy costs for millions of businesses but has since had little positive impact for the brewing and pub sector.

Reports from publicans and brewers include sharp increases in non-energy costs being layered onto bills, harsh new terms and conditions, requirements for enormous up-front security deposits and even flat out refusing to contract with hospitality businesses at all.

The BBPA says there is a need for action immediately to prevent what is already becoming the number one cause of business failure in the sector.

It is also calling on Westminster MPs to demand an explanation from energy suppliers for the current state of the market. It is also essential that the recent reduction in wholesale prices is reflected in energy bills quickly.

BBPA chief executive Emma McClarkin said, “The spiralling cost of energy has been our members’ number one concern for close to a year now and remains so. Now, multiple reports of poor practice have compelled us to speak up on behalf of suffering businesses and make this urgent call.

“There is no doubt that this is causing businesses to fail – people simply cannot afford to make ends meet and are left with no choice but to shut up shop meaning a community loses its pub or brewery, and the jobs and livelihoods that go with it, for good.

“The government put this support measure in place to stop this very thing from happening, but the energy suppliers just don’t seem to be playing fair. The damage being wrought on our sector is enormous and I hope that MPs will heed this call and investigate the issues fully.”

Gemma Gardener runs the York pub in Morecambe, Lancashire and says her energy bills are rising and out of control.

Gardener said: “Not only have our energy bills been extortionate, but our supplier has also added on extra unexpected charges outside of our standard rates, from a £2,000 installation fee to doubling our daily hire charge unexpectedly.

“We have tried to switch suppliers but been rejected and the only reason we’re able to keep going is because our pub company is helping us through. We’re struggling with our bills but so are our customers and so we’re being squeezed at both ends.

“Not knowing what we’ll be charged month on month is incredibly scary, this isn’t only our business but our home and we’re at the mercy of our energy suppliers.”


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