A pub in Royton has stopped serving food due to rising energy bills.
Paul Bowerman, the owner of the pub, said energy bills were ‘doubling’ and would soon go up to four times what they were just months ago.
Paul has seen the pub’s energy bills go from around £800 a month to more than £2,000 a month.
Now he’s worried they could go up to more than £4,000 a month later this year.
Paul said: “They were charging 20p a unit when I first took over in December.
“Then it went up to 39p a unit, and as of late they want to increase that in September to 81p a unit.
“I’ve had to make some fairly rational decisions on what I turn on and what I turn off.
“My electric bill is now up to £1,000 a month and my gas up to £1,200 a month – we’ve had to pay more in utilities than we pay in rent for the pub.
“The utility companies are just charging what they want – my standing charge was 50p per day, then it went to 75p, then £1.50, now £2, but nothing has changed.”
Unlike home energy bills, business energy bills do not have a price cap – meaning suppliers can increase their rates by as much as they want.
As a result of the rise in energy costs, Paul has decided to stop offering food service in the pub.
Paul said: “I couldn’t sustain the food business any further, I’ve had to stop to reduce my gas bill.
“I couldn’t maintain that, and I’ve got concerns about winter.”
Paul said he thinks the rise will mean many businesses will have to close, and he’s worried about the sustainability of the pub: “In my opinion, without assistance or something happening, it’s going to kill a lot of businesses.
“We’ll have to look at making other business choices to come back on finances – which I’ve already done with the food.”
Following a difficult period for pubs during Covid restrictions, Paul feels like things are regressing: “It’s disappointing, it’s almost like we’ve gone back to Covid times.
“I feel disappointed that the Government were quick to help in Covid but they’re not doing that now.
“I’ve seen nothing from them – no direction, no leadership, no initiative, no positive thought, no positive action, and I think that’s because we’re in the leadership election.
“Nobody’s willing to take the initiative or take the decision, and I think that’s deeply disappointing.”
A Government spokesperson said: “No national government can control the global factors pushing up the price of energy and other business costs, but we will continue to support the hospitality sector in navigating the months ahead.
“That includes providing a 50 per cent business rates relief for businesses across the UK, freezing alcohol duty rates on beer, cider, wine and spirits and reducing employer national insurance.
“This is in addition to the billions in grants and loans offered throughout the pandemic.”
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