Commons Sense

House of Commons · Ministers' Questions

Fixed-term Energy Contracts: Hospitality Industry

Tuesday 23 May 2023 · 3 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 1 Partly answered 2 Not answered 0

Key points

  • Minister met with stakeholders and suppliers to discuss fixed-term energy contracts impacting hospitality businesses.
  • Government wrote to stakeholders emphasizing the need for mindfulness regarding fixed-term contracts.
  • Minister agreed to arrange meetings with the energy efficiency unit and the laundry sector to explore ways of reducing energy demand.

Topics (select to filter)

Questions & Answers

Q1 Ruth Cadbury Lab Brentford and Isleworth
Energy Business & Trade
Context

The Royal Oak in Isleworth is a family-run pub facing high fixed-term energy contract rates, leading to financial strain. The Minister previously mentioned meetings with energy suppliers.

Question

What discussions has the Minister had with Ofgem regarding the potential impact of fixed-term energy contracts on hospitality businesses? What further actions are being taken to prevent more pubs and small businesses from closing due to high energy costs?

Answer from Amanda Solloway

The Government have been helpful to all businesses, particularly the hospitality sector. I am sympathetic towards these businesses but emphasize it is a commercial matter. I have met stakeholders and suppliers, and today I wrote again to them emphasizing they must be mindful of fixed-term contracts.

Partly answered

Not addressed: Specific measures to prevent more pubs or small businesses from going under due to high energy costs were not detailed.

How: Sympathetic But Commercial Matter

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Q2 Ruth Cadbury Lab Brentford and Isleworth
Energy Business & Trade
Context

The Royal Oak pub in Isleworth faced high fixed-term contracts leading to financial strain. The Minister had previously mentioned meeting energy suppliers.

Question

What further actions is the Government taking to support pubs and small businesses facing high energy bills under fixed-term contracts? What more can be done beyond commercial meetings?

Answer from Amanda Solloway

The Government have been very supportive towards all businesses, especially in hospitality. I am sympathetic but reiterate it is a commercial issue. I met stakeholders and suppliers and wrote today emphasizing the need for mindfulness regarding fixed-term contracts.

Partly answered

Not addressed: Specific measures beyond commercial meetings were not detailed.

How: Sympathetic But Commercial Matter

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Q3 Derek Thomas Con
Energy Business & Trade
Context

The laundry sector, crucial to hospitality businesses, is experiencing significant financial strain due to high fixed-term energy contracts.

Question

Will the Minister arrange a meeting with the energy efficiency unit and the laundry sector to explore ways of reducing energy demand and securing better deals from suppliers?

Answer from Amanda Solloway

I am delighted to organize meetings with the energy efficiency unit and the laundry sector to explore ways of reducing energy demand and securing better deals from suppliers.

Answered
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