Hospitality businesses will pay massive exit fees
Released On 17th Apr 2023
Hospitality businesses will pay massive exit fees
The Greater Manchester Night Time Economy Adviser, Sacha Lord, is pleading with Ofgem to look into and back the discontinuation of exit fees for small and medium-sized hospitality firms who are dealing with increased energy costs.
Since 1 April, the UK government’s energy support program has been severely reduced, prompting business leaders to forecast the closure of tens of thousands of venues throughout the nation.
According to Lord, multiple energy companies turned down new contracts from the hospitality sector last year, resulting in the emergence of a “black market with dishonest providers” who forced firms to accept energy contracts that were beyond their means.
According to the Night Time Economy Adviser, suppliers are currently imposing exorbitant exit costs when business owners attempt to renegotiate arrangements and charging unnecessarily high prices for gas and energy.
Lord urges that Ofgem must look into these suppliers and propose a workable solution for struggling companies who are in danger of going out of business.
“We can’t just sit back and let the major energy giants ruin our sector, hospitality,” tweeted Sacha Lord earlier today.
“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.”
— Sacha Lord (@Sacha_Lord) April 4, 2023
