How the energy crisis has affected hospitality.

Article posted

8th Feb 2023

Read time

2-3 min read

Author

Mollie Pinnington

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With high energy prices over the past couple of years, many businesses have struggled. The hospitality sector is one industry that has been struggling to keep doors open due to high energy prices.

Businesses within this sector believe that they have not received the full effect of the government's energy support, this is why UK Hospitality has met with Ofgem to raise the issues that these businesses are facing due to the cost of energy.

Ofgem has said that there is an ongoing review of energy supply to business customers. These businesses are already struggling with the current support package. With a huge reduction to support, some businesses within the hospitality sector are worried about whether they will survive.  

The hospitality sector along with other industries hoped to see extra support for more vulnerable business groups. There is further support for energy-intensive industries but not for those in the hospitality sector. As these types of industries have been excluded from a higher level of support now means that they are facing unsustainable rises in energy bills.

 

What effect has this had on businesses?

The higher energy price has led to many business closures in the hospitality industry with over 1000 businesses closing in the last quarter of 2022.   

Research has shown this year that these businesses expect a 101% increase in energy bills compared to this time last year.  The rise in bills has also led to 42% of businesses reducing opening hours and 34% cutting the number of days they open every week.

This shows that the price of energy is having a detrimental effect on these industries.

 

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