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Property and Professional
CLHNews ISSUE 256
APRIL/MAY 2024
Hospitality Sector Welcomes OFGEM’s Vow on “Fairer Treatment” With Promise of “More Support and Greater Transparency”
The Bowden Group Hospitality Business Mentoring since 1989
The hospitality and licensed on-trade sector will, along with other businesses, get fairer treatment, more support in resolving disputes and greater transparency on broker fees under new rules announced by Ofgem.
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The changes will apply to the non-domestic energy sector, which includes the hospitality and licensed on-trade which has seen widespread closures as costs surged. The new rules will make sure energy suppliers improve customer service, open doors to alternative dispute resolution schemes and clearly set out costs for businesses, including fees paid for third party services, like energy brokers.
OFGEM’s decision follows intense pressure by the hospitality sector which had repeatedly called for a review following massive hikes in energy costs. Last summer, in response to a national survey, hospitality venues stated that on average bills had risen by 81% as a result of the rise in energy bills, as well as the increasing cost of food and drink across the supply chain, and also found that 86% of business owners were worried about their energy bills and only 29% felt optimistic about the next 12 months with the cost of living crisis hitting consumer spending as well.
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