Pub body slams energy firms over sky-high bills amid calls for Ofgem investigation

The UK’s leading pub body went to war with the country’s energy firms yesterday, accusing them of profiteering.

The British Beer and Pub Association said that it had received “countless examples” of “price hikes and poor practice” which have negated government efforts to put in place financial support for struggling businesses.

The trade body has written to Ofgem, the regulator, and to the chairs of two influential Westminster committees calling for an investigation.

The intervention came on the same day that another pub group warned of the impact of energy costs on its business.

The City Pub Group admitted the price it pays for energy “rose substantially” last year, but it hopes that a company-wide energy reduction drive and hedging 40 per cent of its energy costs will reduce the company’s energy bills by around 10 per cent over the coming year.

The group also said it had lost just shy of £1m-worth of sales due to industrial action, a day after Fuller’s tagged their own missed revenues in the £4m region.

Another round of strike action is due next week.

However, it wasn’t all doom and gloom in the sector.

Pub and hotel operator Marston’s  has reported bumper sales over the Christmas period as Brits treated a pint as an “affordable treat”.

The historic London-listed firm, founded in 1834, said like-for-like sales were up 12.9 per cent on Omicron-affected 2022, for the 16 weeks to 21 January.

The firm said it had successfully hedged energy prices across the year.

“Whilst we still have certain cost challenges to navigate in 2023, we are well-positioned to continue to progress our strategy and are encouraged by the level of consumer resilience experienced to date,” boss Andrew Andrea said.

Industry body Energy UK pledged that suppliers will do their best to work with businesses to ensure they are receiving the discounts owed to them.

Dhara Vyas, deputy chief executive of Energy UK, told City A.M.: “Energy suppliers have worked hard to implement and administer the Energy Bill Relief Scheme in short timescales to ensure businesses receive lower prices if they entered new contracts after 1 December 2021, as well as those with flexible or variable contracts.

“Suppliers will continue to work with government and business customers to implement the Energy Bill Discount Scheme from April 2023.”