Hospitality businesses face ‘extortionate exit fees’ as energy prices surge, Ofgem told

Night-time Economy Adviser for Greater Manchester has called on Ofgem to launch an investigation into the providers who are charging “exorbitant prices” for gas and electricity

Big Zero Show 2023

Sacha Lord, the Night Time Economy Adviser for Greater Manchester, is urging Ofgem to investigate and support the cancellation of exit fees for small and medium-sized hospitality businesses facing rising energy costs.

The UK Government‘s energy support scheme has been significantly scaled back since 1st April, leading industry leaders to predict the closure of thousands of venues across the country.

Lord says that many energy providers refused new contracts from the hospitality industry last year, creating a “black market with unscrupulous providers” who pressured businesses into accepting energy contracts beyond their means.

Now, providers are charging excessively high prices for gas and electricity and imposing extortionate exit fees when business owners try to renegotiate terms, the Night Time Economy Adviser has said.

Lord insists that Ofgem needs to investigate these providers and offer a realistic solution for struggling businesses at risk of bankruptcy.

Earlier today, Sacha Lord tweeted: “We can’t just sit by and allow the big energy companies to decimate our sector, hospitality.

“We owe it to ourselves, staff, suppliers, customers and future generations. I’m now exploring alternative options, as Ofgem have failed us. Nothing off the table – we need to make noise.”

An Ofgem spokesperson told ELN: “Ofgem is committed to working with consumer groups, energy suppliers and government to ensure all consumers, both domestic and non-domestic are protected.

“We are currently reviewing the state of the non-domestic energy market, which includes the hospitality sector, to determine if changes to supplier licence conditions are needed. As part of this we issued a call for input which closed on Friday 31st March.

“We are in the process of reviewing the responses we received as part of the call for input, all of which, will help inform our next steps.”

Network with hundreds of businesses and public sector organisations taking bigger steps to net zero. Book your FREE ticket to the Big Zero Show 2023 now. 

If you enjoyed this story you can sign up to our weekly email for Energy Live News – and if you’re interested in hearing more about the journey to net zero by 2050, you can also sign up to the future Net Zero newsletter. 

Latest Podcast