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Bristol Post
Bristol Post
Business
Dave Doyle

Pub landlords fear energy price hikes will hit their trade

Bristol publicans are worried that spiralling energy costs will have a negative effect on their businesses. As Ofgem confirms domestic bills could rise by around 80 per cent, local landlords have responded with more or less concern about even bigger hikes within their sector.

Unlike household power bills, those faced by businesses are not capped by Ofgem and could therefore rise by an unlimited amount. Trade publication the Morning Advertiser has reported jumps of up to five times in some cases.

A national survey by the same periodical found that most publicans expect to close for good without urgent government action on energy costs, which are affecting ale producers as well as ale houses. A survey of local pubs by Bristol Live found similar concerns here.

READ MORE: Award-winning Gloucester Road butchers shop Murrays closes its doors after 28 years

Steve Smith owns the Seven Stars, a 16th century inn at Redcliffe. He called the unfolding energy crisis 'very frightening', adding that 'there’s nothing we can do about it' and 'the government continues to do nothing for anybody'.

Without urgent help, he sees the near future as very bleak. “As we run into our third quarter the weather’s going to get worse,” he said. “Margins are slim enough as it is at the moment and it’s no good to get a cheque in January if the power company has cut you off by then.”

The longtime landlord is increasingly frustrated by apparently empty promises of action from Westminster. “They sabre rattle about maybe they will do something here or there,” he said, “then another week passes with nothing. They say they’re waiting for a prime minister – but they have a prime minister, he’s just working out his notice.”

Pubs are facing a double whammy of spiralling power bills and declining custom, Steve added. “The hospitality business is all about enjoying yourself with disposable income,” he explained. “The more that evaporates the less inclined they are to do it.

“If you can go and buy a case of beer from the supermarket for a modest amount of money they’re not going to go to the pub. It’s been slow to take off after lockdown and now here’s more bad news,” he added. “We’ll just have to see if we can ride it out.”

Ben Cheshire runs The Coronation, in Southville. Famous for its Sunday roasts, cats and street parties, its energy bills have been fixed in the short term but could rise later on. “I’m very lucky because I’ve got myself tied into a contract until 2025,” said Ben. “So that effectively caps my bills for now, but it’s really worrying in the long term.”

The more immediate issue is that of space, the landlord explained. The Coronation’s outdoor seating is in two parking bays, which the pub was given permission to use during the pandemic by means of a temporary traffic regulation order.

“They’re taking away all our outside space from October,” said Ben. “I’m going to lose 50 percent of my trade. Next summer I could lose up to 80 percent because no-one wants to sit inside any more – drinking culture has changed.”

Dan Heath is founder of The Cider Box, the only dedicated cider tap room in the city. “Our electricity bill has tripled since we first tried to open in March 2020 – what impeccable timing,” he said. “It's obviously a worrying time for us and our friends in the industry,” he added, “and with zero support from the government, nor a plan for easing escalating costs.”

Dan quipped that he would be spending the winter “drinking cider by candlelight and using a pizza oven for heating, which sounds kind of romantic, in a way”. Despite this, the bar boss says he has “full confidence” his business will continue.

“There’s other strings to our bow,” he explained. “We have an online cider store, we run corporate cider and cheese events, supply festivals across the year and so on. We’ve been going 10 years – we'll ramp things up as much as we need to, to survive and thrive.”

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