BBPA demands action on unfair energy charges
In a letter to energy regulator Ofgem today (15 December 2022), the BBPA highlighted numerous cases of energy suppliers increasing elements of energy bills that are outside of the remit of the Energy Bill Relief Scheme (EBRS) such as standing charges, installation fees and other hidden non-commodity costs.
It said pubs across the country have continually stepped forward to provide vital safe, warm and welcoming spaces for their communities, often at no cost, as local people struggle to afford to heat their homes.
The BBPA is also calling on the Government to provide urgent clarity and certainty that an extension to the EBRS will be applied for pubs and breweries beyond 31 March. It added recently released data showed energy costs were set to wipe out profits for many pub and brewing businesses if the scheme wasn’t extended.
Warning not heeded
The letter to Ofgem follows an earlier intervention by the regulator that sought to stop bad practice by suppliers, this most recent letter from the BBPA stated, “we are still seeing reports from our members that suggest your warning has not been heeded”.
BBPA chief executive Emma McClarkin said: “In times of need, pubs play an absolutely vital role in many communities across the country. In places where other local services have shut, the pub is often the last remaining space that is open to and welcomes everyone, a crucial thread in the social fabric of our society.
“As we face an extreme cost-of-living crisis and freezing temperatures, our industry is doing what it does best, providing warm and welcoming spaces for those who need it most. But we are at breaking point. Pubs want to keep their doors open for local people, but energy costs are continuing to cripple them.
“Unfair hidden charges mean that the Energy Bill Relief Scheme designed to save their businesses from failure, is doing little to help. We urgently need Ofgem and the Government to take a serious look at these practices and guarantee that costs can be brought down both now and throughout 2023, otherwise we will lose these vital hubs that mean so much to so many.”
Unexpected charges
Gemma Gardener who runs the York pub in Morecambe, Lancashire, said: “We are proud to offer a warm space for our community, we want people to feel welcome here and we offer free meals for school children because we know there are families in our area that are really struggling at the moment.
“But we’re also facing tough times ourselves, not only have our energy bills extortionate, but our supplier has also added on extra unexpected charges outside of our standard rates, from a £2k installation fee to doubling our daily hire charge unexpectedly. We have tried to switch suppliers but been rejected.”
Meanwhile, Becky Barnett who operates the Lamb, in Newhall Swadlincote, Derbyshire, added: “We’ve seen our energy costs double in the past few months and it’s a scary time for our business as well, we want to continue to provide a non-judgemental warm space for people but we’re facing our own rising costs.”
