The British Beer and Pub Association (BBPA) has urged the government to conduct an inquiry into the energy sector after reports of poor supplier conduct towards breweries and pubs.
In a letter to Harriett Baldwin MP and Darren Jones MP, chairs of the Treasury and Business Select Committee, the BBPA noted instances in which the industry has faced “harsh new terms and conditions” from energy suppliers as well as “sharp increases in non-energy costs”.
The letter then called on the government to converse with suppliers, while also ensuring that the recent reduction in wholesale prices comes into action as soon as possible.
Previously, the BBPA wrote to energy regulator Ofgem which is reportedly investigating the situation.
Emma McClarkin, chief executive of the British Beer and Pub Association said: “The spiralling cost of energy has been our members’ number one concern for close to a year now and remains so. Now, multiple reports of poor practice have compelled us to speak up on behalf of suffering businesses and make this urgent call.
“There is no doubt that this is causing businesses to fail – people simply cannot afford to make ends meet and are left with no choice but to shut up shop meaning a community loses its pub or brewery, and the jobs and livelihoods that go with it, for good.”
As the beer industry faces financial pressures, Birmingham’s Dig Brew Co, Bad Seed Brewery in Malton and Bishop Auckland’s Hops and Dots are the latest breweries to have closed amid rising energy costs. Several other brewers and beer retailers have also ceased business in the recent months, such as Hoptimism and Hop O’Clock.