Supply chain ‘should be priority in event of blackouts’

21-Oct-2022 - Last updated on 21-Oct-2022 at 09:54 GMT

Government warned: MPs have heard how information on the rumoured blackouts needs to be communicated to the sector (image: Getty/rudigobbo)

MPs have been told early advanced warnings of blackouts must be given to safeguard the provision of food and drink.

Food and drink supply chain bosses also urged details of energy supply should be communicated by the Government and tailored if planned interventions are needed to manage the situation and mitigate the worst impacts of the energy crisis.

Furthermore, MPs heard redundancies, closures and a sharp drop in investment are likely to follow if firms within the supply chain miss out on energy supply after March.

This comes after Office of National Statistics (ONS) data revealed food costs pushed inflation up 10.1% in the 12 months to September.

Certainty and stability

British Beer & Pub Association (BBPA) chief executive Emma McClarkin said: “Energy used to be 5% of hospitality businesses, by July it was 10% and by the end of the year it is forecast to be 15%. We will need to see the extension of the energy support beyond six months.”

Certainty and stability are something people are craving and the lack of stability is not helpful, according to shadow food minister Daniel Zeichner.

Meanwhile, operators have told The Morning Advertiser how potential blackouts could post health and safety issues for businesses.

National Grid boss John Pettigrew warned Britain could face rolling blackouts weekdays between 4pm and 7pm during winter.

Huge business loss

Licensee of the Riverside at Aymestry, near Leominster Andy Link said blackouts would be “extremely challenging” for pubs.

In addition, licensee of the Old Windmill in Coventry Michelle Gilmour said even with plans in place, blackouts could see the country “losing more great British pubs”.

She added: “It would be devastating for us, they’re peak times for us, the after-work crowd and to just lose power for any amount of time is massively expensive.

“You can lose the rest of the night as well because [customers] are going to leave and they're not going to come back then, so you're talking about a huge amount of money, a huge business loss.

“As an industry, [we’re] massively struggling already. We can't take any more blows. I don't know what they can do but there must be alternatives.”