The UK’s under-pressure hospitality industry has a ready made ally as it prepares to batten down the hatches in the face of a perfect storm of rising energy costs, new employment laws and increased taxes.
Business Energy Claims’ (BEC) proven track record for holding energy brokers to account — and winning landmark legal cases — means the trailblazing firm is on standby to step in.
And CEO Callum Thompson is urging any hospitality firm concerned about a potentially mis-sold energy contract to get in touch at a time when every penny counts.
“Right now 80 per cent of the enquiries we’re getting through our website are from people in the hospitality industry who have nowhere else to turn,” said Callum.
““There’s plenty of evidence to suggest that the sector as a whole is being unfairly targeted by unscrupulous third party intermediaries.”
In the same week that bosses at the British Beer & Pub Association (BBPA) revealed members are braced for their ‘worst year ever’, more and more landlords, restaurateurs and caterers are reaching out to Business Energy Claims (BEC) with pleas for help.
The latest Ofgem report into consumer energy trends showed that businesses in the hotel and catering sector are most likely (57 per cent) to use a broker.
And that can leave unsuspecting customers exposed to unregulated practices and hidden fees at a time when so-called energy literacy needs to improve.
“We’re getting messages about miscommunication, a lack of communication and — at the other end of the scale — aggressive cold calling,” added Callum.
“Mis-selling is still a significant problem and Ofgem have gone on the record to say that there remains room for improvement when it comes to businesses’ experiences in the energy market.
“That’s especially true when it comes to perceptions of customer service and experiences with brokers. Ofgem noted that some businesses reported distrust — or irritation — in brokers due to aggressive marketing tactics, including frequent cold calls.”
A flood of new enquiries to BEC comes at a time when the BBPA claims one in 50 pubs could be forced to close down permanently this year — with soaring energy costs a key factor.
Chief executive Emma McClarkin fears that the 45,000 pubs across the UK are facing their ‘worst year ever’ due, in part, to the rising price of gas and electricity.
And with a similar picture emerging across the hospitality industry as a whole she explained: “If closure rates accelerate as expected compared to recent years then we might see one in 50 pubs close this coming year as costs increase and margins are squeezed beyond what can be endured.
“The beginning of April is a massive cliff edge and a lot of publicans are really fearful. This could be the worst year for pub closures ever.”
BEC boasts a long history of guiding businesses through the choppy waters of an unregulated and often unsympathetic energy industry.
And Callum added: “It’s no surprise that we’re seeing more and more hospitality firms reaching out for help. We’re here to help them gain a clearer picture and, in many cases, understand how they can recoup lost money.”