The boss of Greene King said one pub landlord had seen their energy bill jump £33,000 for the year, as he warned spiralling costs could see a slew of pub closures.
Nick Mackenzie, chief executive of the 2,700-strong Bury St Edmunds-based pub chain, was one of six pub chiefs to sign an open letter to the Government urging it to act in order to avoid “real and serious irreversible” damage to the sector.
JW Lees, Carlsberg Marston’s, Admiral Taverns, Drake & Morgan and St Austell Brewery also sounded the alarm on Tuesday.
Out of control gas prices following the invasion of Ukraine by Russia have contributed to rocketing energy bills for operators.
On Friday, regulator Ofgem confirmed that bills for an average UK household would surge by 80% in October when the new price cap comes into force.
However, businesses operate without a regulated price cap, with some pub owners warning that their bills have quadrupled or are struggling to even find suppliers willing to power their venues when contracts come up for renewal.
Mr Mackenzie said: “While the Government has introduced measures to help households cope with this spike in prices, businesses are having to face this alone, and it is only going to get worse come the autumn.
“Without immediate government intervention to support the sector, we could face the prospect of pubs being unable to pay their bills, jobs being lost and beloved locals across the country forced to close their doors, meaning all the good work done to keep pubs open during the pandemic could be wasted.”
The bosses, who sit on the board of British Beer and Pub Association (BBPA) have demanded the Government implement an urgent support package that effectively caps the price of energy for businesses.
It comes as knock-on effects from rising energy bills are also impacting the sector, with CF Fertilisers, one of the UK’s biggest CO2 producers, revealing it will halt production at its remaining UK ammonia site due to rocketing costs.
Brewers have warned that they could face disruption if there is a shortfall in supply of CO2, which is sometimes used to help make beer fizzy.
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.”
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