Kettering MP raises pub's energy crisis plight and accuses supplier of 'blatant profiteering'

Kettering MP Philip Hollobone accused an energy supplier of ‘blatant profiteering’ after a local pub’s monthly electricity bill jumped by almost £8,000.

The Conservative MP raised the plight of the pub – which was not named – during a debate in the House of Commons this month.

It came after the Government announced a scaled back £5.5bn package of support for businesses and other groups to help with high energy costs for 12 months from April.

Speaking in Parliament, Mr Hollobone said: “I welcome the extension of energy price support for non-domestic users. However, may I give my hon. friend a real-world example of what is happening in the non-domestic sector?

“A popular local pub in the Kettering constituency emailed me this week. Up to January 2, it was paying £2,000 a month for electricity. At the end of the contract, its supplier switched it to an out-of-contract tariff of £9,700 a month.

“The pub went out to the market and, reluctantly, had to agree to a cost of £5,700 a month with another supplier. Surely that is blatant profiteering when one company can offer a price £4,000 a month less than a competitor’s quote.”

Exchequer Secretary to the Treasury James Cartlidge MP said the Chancellor was speaking to Ofgem about its review of the non-commercial market to see whether there are abuses of contracts – a move welcomed by Mr Hollobone.

Mr Cartlidge said: “One of the reasons we are maintaining universal support is precisely because there will be examples, such as the one my hon. friend raised, of those who came to the end of a deal and fixed when prices were high, and so will not have benefited, even though prices are falling. This support is there to prevent that sharp cliff edge. It is about getting the balance right."

Last year popular Kettering pub The Three Cocks closed down after soaring energy costs meant it wasn’t viable to stay open.

From April 1, 2023, until, to March 31, 2024, all eligible non-domestic customers who have a contract with a licensed energy supplier will see a unit discount of up to £6.97/MWh automatically applied to their gas bill and a unit discount of up to £19.61/MWh applied to their electricity bill.

But the package is not as generous as the support currently in place – and has been branded ‘out of touch’ by the Federation of Small Businesses.

National chairman Martin McTague said: “Two pence off a kWh of electricity and half a pence off gas is totally insignificant for small businesses, despite costing billions to the taxpayer. The Government will inevitably have to come back.”

He added: “That’s certain from this catastrophic move is there’ll be a cliff edge after March. The small fish and chip around the corner, your local pub, and the family-run independent laundrette – all will see much higher bills. That’s on the Government.”

And Campaign for Real Ale (CAMRA) chairman Nik Antona said: “The prospect of energy bills soaring in April as other costs keep rising and consumers tighten their belts will leave the nation’s pubs, social clubs, brewers and cider producers apprehensive about how they can continue to make ends meet.”