UKHospitality meets with Ofgem over energy supply concerns

UKHospitality has met with Ofgem to discuss ongoing concerns around the price and availability of energy supply to hospitality businesses.

The trade body’s chief executive Kate Nicholls said it had been a “very constructive and positive meeting” with the boss of the energy watchdog.

Ofgem has been investigating the non-domestic energy market since last year but is yet to publish the outcome of its inquiry.

It comes after UKHospitality urged Ofgem to call out rogue suppliers who had been using government support schemes as a “cash cow” and said the behaviour of some firms over the last four months had been “disgraceful”.

Nicholls tweeted today (26 January): “Very constructive and positive meeting with CEO of Ofgem as part of their ongoing review and action on energy supply to business customers following concerns flagged by us with business secretary and chancellor around terms of supply, security deposits and access charges.

“Looking forward to engaging further as part of Ofgem’s evidence gathering ahead of their report to ministers.”

Ofgem said earlier this month that it was aware of the issues businesses were facing and that it was working with the government to determine if "further action or assistance is needed".

Nicholls will give evidence at a government select committee meeting on 31 January as part of an ongoing inquiry into energy price support.

The amount of energy bill support businesses receive from the government is to be cut from an £18b package to a £5.5b initiative from April this year.

However, Sacha Lord, night-time economy adviser for Greater Manchester, said some businesses have not received any support they have been entitled to since September 2022 and has called for an inquiry into the issue.

Operators have told The Caterer they have had to reduce opening hours, menu sizes and even cease to take a salary from their businesses due to cost pressures.

Hospitality businesses in London are set to see their annual bills rise by an average of £4,492 from April, according to analysis from the Liberal Democrats.

It predicts the City of London will be the worst affected, with 260 pubs, restaurants and cafes set to face a hike of £5,278, while nearly 1,500 venues in Westminster will see an average £5,172 rise.

The government did not respond when approached for comment about the Liberal Democrat figures.

Image: praphab louilarpprasert / Shutterstock