A St Albans pub is on the edge of financial ruin following extortionate energy price inflation.
The owner of The Kings Arms (TKA), Séan Hughes, has labelled the current rates as “disgraceful”. In a recent social media post, TKA revealed the extraordinary increase in bills.
The pub won’t fix in with their current supplier until November 1, but using the prices quoted to them at the beginning of September, they would be facing an increase of roughly £101,752.44 over the course of a year.
A unit of gas has gone from 2.6p to 27p, a 938 per cent increase, and electricity has gone from 16p to 81p, a 400 per cent unit increase.
Bills that once totalled £80 a day would now equal £500, an astronomical rise that is both unachievable and destructive.
The statement from TKA said: “The worrying thing is that we are now in a situation where pubs and restaurants across the country are being forced into long deals at insane prices; £100,000 a year increase at three years or £60,000 per six months out of contract.
“And it is not just hospitality; it is the whole High Street. Has anyone thought how schools and hospitals will afford the rises?
“Without support for households we will have no customers and with bills this high it’s hard to see how we can all make it through with food price increases (doubling in most cases), and oil prices tripling. It’s a battle we don’t need to be having after the worst two years this industry has ever faced.
“When is the government going to sort this mess out? This situation needs fast action!”
Séan Hughes, who spoke with MyLocalNews whilst the government went back into recess for the period of mourning for The Queen, called on the new Conservative regime to provide clarity.
“We don’t know what’s happening. We’re in a state of limbo. We need an immediate freeze on current rates. We heard about an emergency budget in September but have received no details. I’ve got no idea what’s going to happen.”