Norfolk's small businesses want industry-based energy price cap
Projections from a Norwich-based Consultancy firm show consumers bills could climb to ÂŁ3,600 a year, this winter
Last updated 3rd Aug 2022
Norfolk's Small Businesses are urging the Government to introduce an industry-based energy price cap for those in power-intensive sectors.
The appeal comes off the back of projections from Norwich-based Consultancy firm, Cornwall Insight, which show that consumers bills could climb to ÂŁ3,600 a year, this winter.
"That's no sustainable if it's going up and up and up, again"
David Holliday is the owner of Moon Gazer Ale which is based in Hindringham.
He told us how they are trying to weather the storm: "We have already budgeted for a ÂŁ23,000 increase. We took the decision that we were going to try and stop that going to the consumer, so we were going to try and wear that- although it would hurt us as a business, we didn't want to add inflationary pressures.
"But obviously that's no sustainable if it's going up and up and up, again.
"We had one customer come and see us last week who've annual electricity bill is normally ÂŁ40,000 and he's fixed on ÂŁ80,000 a year- which won't save his complete profit. He's saying the same as us, do we fuel that inflationary pressures onto the market or do we try and bear that increase?"
"We are reversing ourselves into a lose-lose situation"
Mr Holliday told us there's no easy options- but all of this was preventable: "Either that comes back from lots of businesses not making a profit, so the government doesn't get tax take or we have to pass that onto the consumer- which just fuels inflation further.
"It really is something that the Government has allowed to carry on for too long, it's been the elephant in the room that nobody has spoken about.
"If you don't have that certainty to plan ultimately two things will happen, some small businesses will fail because they won't be sustainable, and other small businesses will pass those prices pressures onto the consumer- which only adds to inflation.
"Nobody wins here, we all talk about win-win situations but I think we are reversing ourselves into a lose-lose situation here".
He also told us that this is starting to affect consumer behaviour- but he fears the worst is yet to come: "Maybe they would have originally brought six beers, but now they are only having three or four- so there is a slight tightening of the belts.
"We are very fortunate that we are based in a tourist area of Norfolk, so we still have an influx of people on holiday and when people are on holiday, they will spend money- but some are being a bit more prudent than before".