Government told to end 'scandalous behaviour' by energy companies

25 August 2023 by
Government told to end 'scandalous behaviour' by energy companies

The government has been told to end the ‘scandalous behaviour' of energy companies and force the renegotiation of tariffs for businesses locked into high prices.

UKHospitality has written to Amanda Solloway, the Minister for Energy Consumers and Affordability, urging the government to urgently deliver Ofgem's recommendations for the non-domestic energy sector.

Chief executive of the trade body, Kate Nicholls, said: "As consumers rightly see the energy price cap fall again from October, there is a real danger that businesses are being left behind to fend for themselves. Thousands of businesses are locked into contracts fixed at the height of the energy crisis, way above current market rates, and some energy suppliers are simply refusing to renegotiate. This is despite a clear direction from Ofgem to do so.

"It really is scandalous behaviour and is a key reason why inflation continues to remain stubbornly high. What we're seeing is the cost of doing business becoming too much for venues and they have no choice but to pass these costs on, which drives inflation. Energy, unfortunately, remains the most significant of those high costs.

"The Government now has a clear set of recommendations from its energy regulator – we expect these to be acted upon rapidly. Most important is clear instructions to energy suppliers to renegotiate the highest energy contracts. That is simply the easiest way to relieve the intense pain many hospitality businesses are suffering."

UKHospitality's requests include encouraging suppliers to resolve the issues businesses are facing with high energy contracts, offer greater transparency for customers, deliver wider access to the energy ombudsman, put in place measures to prevent the blacklisting of entire sectors and improve the regulation of brokers.

Image: Lesterman/Shutterestock

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