Convenience stores are at risk of closing due to rising energy costs unless the government steps in, the Convenience Stores Association (ACS) told Radio 5 Live this morning.
Chief executive James Lowman told radio host Rick Edwards a cap on energy prices for small businesses was needed to help convenience stores tackle the current cost of living crisis.
Speaking on BBC Radio 5 Live this morning, union CEO James Lowman said: ‘At the start of the year typically our members would pay 15p per unit for electricity. They are now quoted at over 60p per unit. That’s more than four times the amount.
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“We don’t like to catastrophize, but the sums just don’t add up. Something must be done to support them. »
Currently, there is no energy price cap for businesses, which would limit the rates a supplier can charge for its default rates.
He noted the strength of the retail sector, but said store closures were inevitable without more support.
“We are a very resilient sector, very resilient during covid, very resilient during recessions in general, but if nothing is done about this particular issue there will be store closures and that will have a huge social impact “, did he declare.
Lowman added, “While big businesses are also very constrained, smaller businesses can’t hedge, buy in advance, and do the things that try to mitigate costs, and those costs just aren’t sustainable. .”
“The energy bill for the convenience sector as a whole is £2.5billion now, and it will continue to rise. The most effective thing the government can do is introduce a cap on costs energy, because it’s driving this really acute emergency facing our members and many other businesses.
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