Pubs urged to shop around for best energy deal

Licensees are being urged to take advantage of the highly competitive energy market by shopping around for the best deal.

Despite the currently volatile energy market, the Federation of Small Businesses (FSB) has suggested pubs can still find a reasonable deal if they choose wisely.

The call comes after research revealed more than eight out of 10 pubs have been hit by rising energy costs - and many say they are in the dark about how to cut their costs (see panel). Simon Briault, a spokesman for the FSB, acknowledged that small businesses, including pubs, were facing a tough time with energy costs.

But he added: "Licensees should review their contracts with energy suppliers on a regular basis.

"Some people are signing-up for energy contracts that last five years and then can't get out of them without paying huge cancellation fees.

"The market is very competitive at the moment, but pubs should take advantage of that competition."

Lou Hogg, licensee at the Old Crown, in Cumbria, recently changed his service provider after realising he could get a better contract.

"After shopping around I worked out I could get a much better deal with another company," he said.

"My advice to other licensees would be to shop around when their renewal licence is up."

Gary Parker, licensee at the Blue Boar, in Poole, Dorset, said: "I think energy costs are ridiculously high at the moment and I'll definitely be shopping around when it comes to renewing my contract."

Meanwhile, 85 per cent of pubs said they had felt the effects of rising energy costs in a survey by purchasing consortium Beacon.

Nearly two thirds (59 per cent) had already, or were preparing to pass their costs onto their customers.

And a third (32 per cent) felt they did not have access to enough information on how to cut energy costs.

Karen Packham, director of Beacon, said: "The survey results have demonstrated just how deeply the hospitality industry has been affected by the unstable energy market.

"However, what is even more worrying is the lack of information available."

To receive a leaflet on energy saving advice call Beacon on 01904 695405, or visit www.beaconpurchasing.co.uk