UKHospitality calls for investigation into hospitality energy market

By James McAllister

- Last updated on GMT

UKHospitality calls for investigation into hospitality energy market

Related tags ukhospitality Energy Energy suppliers Coronavirus Government

Trade body UKHospitality has written to the Energy Minister Kwasi Kwarteng MP calling on the Government and Ofgem to investigate unfair practices in the energy market.

The letter, sent yesterday (10 August), says that evidence provided by UKHospitality members reveals some 'truly shocking' practises being implemented by businesses in the energy supply market.

They include operators being quoted significantly higher prices for being in the hospitality sector than others; and others are being asked to give substantial deposits including, in one instance, a £60,000 deposit for a single site hotel.

Further examples also include energy companies penalising hospitality businesses for unused energy during the Coronavirus lockdown period.

UKHospitality CEO Kate Nicholls writes that the lack of empathy from some businesses in the energy supply market verges on immoral, but there seems no recourse that can be taken, with the option of changing supplier effectively being withdrawn.

“It appears that hospitality businesses are being singled-out by energy providers," says Nicholls.

“This behaviour would be wholly unacceptable at the best of times, but when it is happening while so many businesses are trying to recover from the Covid-19 crisis and while so many jobs are still on the line, it is totally beyond belief.

“The Government and Ofgem must investigate this immediately.

"Our sector has already been hit the hardest of any. It can not afford to be unfairly squeezed like this right at the moment it is expected to play a role in the recovery of the economy.”

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