Majority Of British Pubs May Not Survive Winter As Power Costs Soar

The entire British pub industry could find itself on the verge of collapse this winter if the government fails to intervene in power markets to ease cost pressures.

According to a survey commissioned by trade publication the Morning Advisor around 70% of respondents say they would be unable to operate and forced into closure if electricity prices continue to soar.

Zero Hedge reports: More than 65% of the pubs surveyed said power costs rose more than 100%, 30% said utility costs jumped 200%, and 8% experienced 500% increases. Most pubs warned they couldn’t afford the exponential rise in energy costs. 

One pub told The Guardian the utility company had quoted them a 600% increase in power costs versus their current contract. 

Heath Ball, managing director of the Frisco Group, which operates three pubs across the southeast of England, offered an apocalyptic warning that pubs were facing a “doomsday scenario” in just a few months when the cold season begins. 

He even said some pubs were being rejected new power contacts because utilities deemed them “high risk.” Ball said lawmakers need to resolve the energy crisis soon or “find a solution to this now or face mass pub and restaurant closures.” 

There are more than 46,000 pubs across the UK in 2021, according to British Beer and Pub Association (BBPA), with about half of them being independents.

Emma McClarkin, chief executive of the BBPA, said:

Then there’s the supply of British pubs’ life and soul: beer. A shortage in fertilizer production due to soaring natural gas costs has slashed the availability of carbon dioxide, an essential ingredient in producing carbonated drinks, including beer. This will undoubtedly make the situation worse for pubs:

McClarkin told Fortune:

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