Merseyside pub reveals eye-watering energy bill amid warnings of mass closures

An award-winning Merseyside pub has been left stunned at the huge cost of its predicted energy bill as prices continue to spiral out of control in the industry.

Six of the UK’s largest pub chains and breweries today warned that there could be mass closures across the sector if nothing is done to address energy costs and inflationary pressures.

Unlike domestic energy supplies, business energy bills are not governed by an Ofgem price cap. It has left some pub owners with bills that have quadrupled.

The owners of the Rose and Crown, in Bebington, recently sought out a new deal with their suppliers and were taken aback to see the ‘best offer’ come in at a rate of 97.05p per kilowatt.

“We were paying 15p/unit in May,” the renowned pub informed its social media followers.

The predicted bill energy from British Gas comes in at £61,667.94 for the year - or a whopping £6,215.92 per month.

The Wirral pub stated: “Action is needed urgently otherwise thousands of small businesses will disappear this winter.”

When asked what they plan to do in light of the new fees they went on to say: “For us we’ll just have to try and make it through the winter and see what the world looks like next spring.”

One comment read: “I really don’t see how this is viable for many businesses such as yours. The government has to intervene.”

In light of the staggering rise in bills, bosses of six of the UK’s largest chains have sent an open letter to the government issuing a dire warning about the effects of the cost of energy and how they are affecting businesses.

“We have publicans who are experiencing 300% plus increases in energy costs and some energy companies are refusing to even quote for supply,” said William Lees Jones, managing director of the JW Lees pub group.

“In some instances, tenants are giving us notice since their businesses do not stack up with energy at these costs. These are not just pubs but people’s homes and the hearts of the communities that they sit in.

“Government needs to extend the energy cap to business as well as households.”

Prices began to rocket in 2021 due to high demand from economies which reopened after Covid lockdowns and more recently because of the Russia-Ukraine war.

The situation looks set to only get worse as the war continues and France, which is a major supplier of energy across Europe, struggles with issues in its nuclear reactors.

Earlier this month, the Association of Convenience stores (ACS) warned the government that some of their businesses may be forced to close unless a price cap similar to the domestic one is introduced. Pubs and brewers look to follow suit as they are the latest businesses to call on the government for support.

A government spokesperson said: “No 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% 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.”