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‘Disgraceful’ suppliers who make fun of hospitality companies over energy bills: Companies using the government’s energy bill support scheme as a ‘cash cow’
Warning: UK Hospitality boss Kate Nicholls
Unscrupulous companies are using the government’s £18bn energy bill support scheme as a ‘cash cow’, the UK Hospitality boss warned.
Kate Nicholls, who lobbies for pubs and restaurants, said some energy companies were ‘disgraceful’.
She accused suppliers of charging “excessive rates,” demanding “eye-popping” down payments and canceling contracts. And Nicholls said companies were hit by huge increases in their fixed costs, unaffected by higher wholesale gas prices.
She told the Daily Mail: ‘Despite the drastic drop in energy prices, members are getting increases of up to 400 per cent.
“You see some justification for raising gas prices because of Ukraine. But why is the standing charge going up by 400 to 500 percent?’
Some hospitality businesses are being charged up to £15 a day to be connected to the network, she said.
Nicholls called on Ofgem to punish price-gouging behavior and ‘name and disgrace’ energy companies that have acted in ‘bad faith’. She also called for renegotiation of the most expensive deals.
In a letter to Ofgem chief executive Jonathan Brearley, reported by Sky News, she said: ‘To avoid massive corporate failures we need to see swift and dynamic intervention from Ofgem.’
Chancellor Jeremy Hunt has told businesses the £18bn package protecting them from winter energy price hikes will not be continued at current levels.