Utility Bidder Energy Insights 2022 - Flipbook - Page 13
How does this affect
business sectors?
Here at Utility Bidder, we work with
What other SME decision makers are saying
Utility Bidder back industry experts who want the government to scrap the 12.5% VAT rate
on pubs, restaurants, and hotels, and have called for the scheduled rise back up to 20% in
April to be scrapped.
thousands of businesses and many of
them are very concerned about the
current climate. Huge rises will be
crushing for many small and medium-
30%
of UK business could be forced to
temporarily close due to the energy crisis
sized firms who are still trying to get
back on their feet after the pandemic
and Brexit red tape. Add in concerns
about other bills, such as food, high
inflation and increased National
Insurance contributions and it’s not
difficult to see why businesses are so
worried.
62% of UK business think the energy
Every sector will face
energy hikes
crisis will affect their business this winter
Every sector will face an energy
bill hike and below we’ve looked at
just two examples to highlight the
seriousness of the issue.
Business owners estimate £900 worth of energy is
wasted at work per year.
Care Homes
Care operators could face up to
Customer Pricing Index + Housing (CPIH)
100% increases in their energy bills.
A typical care home of 50 residents
UK Gas Possible Pricing - Weekly Averages
already spends approximately £50,000
5
For illustrative purposes only
CPIH 1
annually on gas and electricity. Price
This is a genuine crisis which could
see many homes being forced to
close. Care homes are not covered by
the price cap which protects domestic
consumers.
Hospitality venues
CPIH 12 - Month Rate
increases could lead to bills doubling.
Our beleaguered hospitality sector
4
3
2
1
has been hit badly by the pandemic
and is also facing a staff shortage
0
crisis, increased costs of supplies, a
VAT increase and now this. It would be
ironic but also very cruel it they were
Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21
Dec-20 to Dec-21
the ICE
to survive the pandemic only to go
under due to the high cost of gas and
The contribution from housing and household services increased from 1.28
electricity.
percentage points in November to 1.31 percentage points in December 2021, which is
The Market Recovery Monitor report
the largest contribution from any division this month and is the largest contribution
for September – December 21 found
from this division since early 2009. The contributions in both months were
that Britain has 8,000 fewer pubs,
significantly above those from April to September 2021. This was a result of price
bars and restaurants and other
rises for gas and electricity following the increase in the cap on energy prices.
licensed venues compared to March
2020 – that represents around 13
venues a day going under.
CPIH - Consumer Prices Index Including Owner Occupiers’ Housing Costs (UK)
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