London Daily

Focus on the big picture.
Friday, Jul 24, 2026

Energy bills: 'My supply fee has gone from 29p to £4 a day'

Energy bills: 'My supply fee has gone from 29p to £4 a day'

Emma Shepherd is one of many pub landlords searching for the best energy deal as her costs continue to soar.

But each quote includes a hike to her standing charge - the fixed daily fee to suppliers - with one saying it would rise from 29p to £4 a day.

UK Hospitality said restaurants, pubs and bars were being hit with 600% rises in standing charges with "absolutely no justification or explanation".

But the trade body for energy firms said charges were higher due to costs.

Energy regulator Ofgem told the BBC it was "aware" some businesses were being asked to pay additional costs. It said it was looking to see if action was needed.

Mrs Shepherd, 52, who runs the Blue Ball Inn near Sheffield said "nobody" could tell her why her standing charge had increased so much. The pub had already closed its kitchen on Mondays and Tuesdays to reduce running costs, she said.

The British Beer and Pub Association said its members had reported costs "being layered onto bills". The extra costs, it said, included large deposits up front.


Scaled back


Unlike households, businesses are not covered by an energy price cap, which limits the amount suppliers can charge per unit of energy.

To shield companies from the spike in energy costs, wholesale electricity and gas prices have been fixed for pubs and many other businesses since October under government support.

But the standing charge element of the bills, which is the daily amount customers pay for the supply of energy, no matter how much is used, is not covered under the support.

From April, the current level of help is set to be scaled back. but price of wholesale gas, which is what suppliers pay gas companies, has also fallen in recent months from record levels last year.

Mrs Shepherd, who entered the pub trade with her husband Carl in 2019, has managed to stay afloat during Covid lockdowns, restrictions and the energy crisis so far as she had a fixed gas and electricity deal.

But when she looked to renew, she said her current provider only offered her a variable contract with a standing charge of £4 a day, when it used to be 29p.

The price per unit of energy has been also quoted at around 37p a day, up from 15p.

Mrs Shepherd said if she took this deal the pub would be looking at bills of up to £17,000 a year, up from between £8,000 and £10,000.

"I'm playing a game of poker with the energy companies," she told the BBC. "My electric and my gas is more than my rent which is crazy. I'm working harder to earn a lot less."

Although Mrs Shepherd might be able to get a fixed rate at a lower price than the variable one, she said being locked into a deal at a higher cost for years when energy prices were forecast to come down left her with a difficult decision.


'Misconception'


Chris Jowsey, the boss of Admiral Taverns, which has 1,600 pubs, called for energy firms to be held to account to "make sure they are not profiteering".

He warned "onerous" energy contracts put many pubs at risk of closure.

Energy UK, the trade body for suppliers, said it was a "misconception to imply that standing charges are rising to compensate for unit prices being capped".

A spokesman said one reason why standing charges had gone up was because the costs associated with the wider network to transmit and distribute energy had risen.

He added another reason for higher network charges was due to costs resulting from suppliers going bust, which many, mostly smaller firms, did when wholesale prices surged.

Last summer, energy watchdog Ofgem was accused by the National Audit Office of allowing a market to develop that was vulnerable to large shocks.

While Ofgem accepted some failings, it said it had been dealing with a "once-in-a-generation global energy price shock".


Action


In a letter to the Energy Secretary Grant Shapps, leaders in the hospitality industry called for the government to instruct Ofgem, the energy regulator, to enable energy contracts signed when prices were higher last year to be renegotiated, due to wholesale prices now being lower.

Ms Nicholls said half of businesses in the sector were locked into high-price deals and warned that thousands might not be able to afford bills when support is reduced from April.

She said if Ofgem could not enable businesses to be able to switch to cheaper deals, then the government should step in and maintain help at current levels, as it is expecting to do for households in next week's Spring Budget.

Ofgem told the BBC it was "aware" some businesses were having problems in getting fixed-rate energy deals as well as being asked to pay additional costs.

It said its priority was to ensure customers paid a fair price for energy and said it was looking to see if action was needed.

The government said Ofgem's review would include whether the regulator requires more powers.

It said the energy support for businesses meant they were paying around half of predicted wholesale energy costs this winter.

Newsletter

Related Articles

0:00
0:00
Close
Badenoch Rejects Grant Shapps' Bid to Return as Conservative Candidate
BAE Chief Warns Britain Has Underestimated the Risk of War
Burnham Rules Out New Scottish Independence Referendum in First Talks With Swinney
UK Government Strengthens Northern Economic Agenda Through Manchester Headquarters and Regional Partnerships
United Kingdom Opens New Furness Peninsula Coastal Route Under King Charles the Third England Coast Path
England Reduces Business Costs for Hospitality Sector Through New Relief Package
United Kingdom Allocates Seven Point Three Million Pounds for Zero-Emission Aviation Research
United Kingdom Begins Restoration Works on Portishead Railway Line After Six Decades Without Passenger Services
United States Tariff Measures Create New Trade Challenges for United Kingdom and European Union Businesses
Prime Minister Andy Burnham Meets Scottish and Welsh Leaders to Promote Regional Growth Cooperation
United Kingdom Government Announces Twenty Percent Business Rates Cut for Pubs, Clubs, and Music Venues
Prime Minister Andy Burnham Opens Manchester Government Headquarters to Shift Decision-Making Away From Westminster
United Kingdom Defence Ministry Says Armed Forces Ready After Iran Accuses London Over US Military Strikes
United Kingdom Inflation Falls to Two Point Six Percent as Prime Minister Andy Burnham Gains Economic Breathing Room
OpenAI Sued After ChatGPT Allegedly Discouraged Emergency Care Before Near-Fatal Embolism
Viral Video Raises Questions Over Twelve-Dollar Croissants at Manhattan Bakery
UK Balances Security Commitments With Economic Growth Priorities
Retail and Hospitality Sectors Navigate Consumer Caution and Tax Changes
Key Trends to Watch
British Land Appoints Joanne McNamara as New Chief Executive Officer
UK Government Names New Life Peers Including Former Military and Civil Service Leaders
Institute of Directors Urges Government Action on Employment Costs and Skills Shortages
IMF Raises UK 2026 Growth Forecast to One Percent
UK Retail Sales Growth Slows Sharply as Households Cut Discretionary Spending
UK Ten-Year Bond Yields Remain Above Five Percent as Government Faces Higher Debt Costs
UK Government Plans Earlier End to Low-Value Import Duty Exemption for Online Retail Parcels
Reform UK Leads Tight Westminster Voting Poll as Conservatives and Labour Remain Close
Royal Navy Carrier Strike Group Completes First Arctic and North Atlantic Mission Phase
Andy Burnham Government Cuts Business Rates for Pubs and Music Venues by Twenty Percent
UK Inflation Falls to Two Point Six Percent in June as Food and Fuel Prices Ease
Andy Burnham Becomes UK Prime Minister Facing Growth Challenges and Fiscal Pressure
UK Government Reviews Long-Term Balance Between Cost Relief, Industry Support, and Public Investment Priorities
BBC Could Receive Permanent Royal Charter Under Government Proposal
Northern Ireland Proposes End to Severe Weather Exemptions for Electricity Compensation Rules
Andy Burnham Holds Talks With UK Devolved Leaders on Regional Cooperation and Devolution
House of Lords Launches Inquiry Into Risks Facing UK Democratic Institutions
ScottishPower Renewables Plans Major Rebuild of Whitelee Wind Farm With Fewer Larger Turbines
UK and Italy Leaders Discuss Global Combat Air Programme and Future European Cooperation
UK Government Announces Six Hundred Million Pound Aerospace Investment Package at Farnborough Airshow
European Union Approves UK Participation in Ninety Billion Euro Ukraine Support Loan Framework
Rolls-Royce Warns UK Government Over Jet Engine Funding Decision and Future Manufacturing Plans
UK Inflation Falls to Two Point Six Percent in June as Fuel and Food Prices Ease
Andy Burnham Begins Premiership With Two Pound England Bus Fare Cap and Electricity Tax Cut Plan
YouGov Poll Shows Tight Competition Among UK Political Parties
Space Technology Investment Expands Through UK-US Cooperation at Farnborough Airshow
UK Opens Final India Young Professionals Scheme Ballot for Three Thousand Applicants
United Kingdom Approved for Ukraine Financial Support Initiative With EU Partners
UK and Ireland Leaders Discuss Security, Energy and Regional Cooperation
British Heart Foundation Identifies Ten UK Areas With Severe Shortages of Defibrillators
Former Southern Water Executives Charged Over Alleged Water Test Manipulation Scheme
×