'Every bit as terrifying as the pandemic' Yorkshire businesses share their fears over energy price spikes

Businesses have expressed their devastation at the winter’s energy forecast - with hospitality owners faced with being forced to reduce opening hours to make ends meet as thousands are expected to shun restaurants, bars and clubs as they grapple with rising energy prices.
By Victoria Finan and Alexandra Wood
Published 27th Aug 2022, 04:18 BST

Ofgem confirmed an 80.06 per cent rise in the energy price cap for around 24 million households in England, Scotland and Wales, sending the average household’s yearly bill from £1,971 to £3,549.

The cap will come into effect on October 1, but Ofgem warned that some suppliers could start to increase direct debits before then to spread costs.

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Hospitality businesses still grappling with the impact of the pandemic on footfall have urged the Government to provide support to ensure they’re not shut down.

Martin Greenhow, the MD of the Mojo bar group in Leeds, said the impact was as “every bit as terrifying from a business perspective as the pandemic was.”Martin Greenhow, the MD of the Mojo bar group in Leeds, said the impact was as “every bit as terrifying from a business perspective as the pandemic was.”
Martin Greenhow, the MD of the Mojo bar group in Leeds, said the impact was as “every bit as terrifying from a business perspective as the pandemic was.”

Martin Greenhow, the MD of the Mojo bar group in Leeds, said the impact was as “every bit as terrifying from a business perspective as the pandemic was.”

Mr Greenhow is fearful that people who would normally spend a portion of their disposable income on going out to bars and clubs will shun them this winter.

He said: “It’s completely unsustainable. We’re at the brink of being indentured servants to the electricity suppliers.

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“We’ve just stood down from two years where we thought we were doing our duty, but what it means is we have incurred debts, and those debts are underwritten by the public.

“The problem is we have no leaders in Government currently and no solutions down the road. That will mean businesses fail.

“We have to see an intervention that stops this from happening for everyone’s good.”

Mr Greenhow said he was already making steps to cope with the expected drop in foot-fall, including telling managers of his bars to make power savings including turning off air conditioning units and considering limiting opening hours.

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Guesthouse owner Andrew Jenkins, who runs five star Orchard Lodge at Flixton on the edge of the Yorkshire Wolds, said the energy cap was “not a cap at all - it’s a licence for energy companies to print money”.

He said he was seriously considering whether to open this winter “because if the building is too expensive to heat and light and costs for food continue to rise I can’t sensibly open.”

He said Putin had “an awful lot to answer for: “We were coming out of Covid and it was all looking incredibly good and suddenly we are hit with these enormous rises in energy costs - and that has just absolutely slammed the brakes on it and completely destroyed the economy.”

No immediate extra help will be announced by Boris Johnson’s Government, with major financial decisions being postponed until either Liz Truss or Rishi Sunak is in No 10 after the Tory leadership contest concludes.

Related topics:Martin GreenhowYorkshireGovernmentOfgemScotland