The owner of a business closing due to rocketing energy prices fears other small firms may go to the wall, unless the government steps in to help.
Since Lily and Stuart Beaton announced the impending closure the couple who run the Ainsty Farm Shop at Green Hammerton, west of York, say they have been overwhelmed with public support, but they others such as their’s may be overlooked.
Whilst public and politician attention has focused on domestic bills, with government imposing an energy price cap several years ago, no such cap exists for businesses.
It means power suppliers are free to set tariffs at what customers and the market can take.
For Lily and Stuart, it meant prices increasing by £55,000, or more than triple. For the Ainstry Farm Shop, which has operated for 22 years, this was all too much.
The business, just by the A59, needed to renew its energy contract and late last month Lily began shopping around, expecting to have to pay double her previous £20,000 annual tariff.
The 52-year-old explained: “The final quote I got from an energy broker – Love Energy Savings – was £76,000 per year with British Gas. We are currently with Octopus Energy, who have been very good, but the contract ends at the beginning of October.
“Their original quote was £60,000 for a 2-year contract and £70,500 for a one-year contract. I genuinely thought they had made a mistake so queried it. Unfortunately, the quote was only valid for 2 days and then went up.”
The couple looked at changing the refrigeration system but that would have meant too much investment for it to be worthwhile.
“At those prices, the business is just not sustainable. We are talking about more than two wages. I do not want to grind myself for an energy company.”
Thus, earlier this month, Lily and Stuart announced that from the end of next month, the shop would close, leaving behind online meat sales from the farm.
Lily said: “Everybody has been so supportive, so fantastic, nobody was negative. Everybody has been upset we are going. Yes, we are devastated but not all is lost. There will be no bakery, no deli, just the meat.”
“It’s taken a long time to build this up. That’s all been taken away from us. But we not going to stop completely.”
She believes government needs to look at how the sector is regulated, rather than government giving a handout now and again.
“We would hope for more legislation on the energy providers and perhaps a cap, similar to domestic rates on increases.
“We are unfortunately unable to absorb an increase of £55,000 a year and would be concerned that if we passed all of this onto our customers, we would price ourselves out of the market.
“I am sure all the MPs, the politicians know about rising energy prices. There’s no way they could not. I realise that they concentrate on households. These are the people who have been shouting out the loudest but small businesses have been overlooked.”
Lily continued: “I am aware that generally, other businesses that are currently in contract are worried about the increases and have heard through butcher’s apps of other butcher’s shops that are closing.”
She added: “Small businesses need to shout too. If they do not, it’s the tip of the iceberg.”
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