UKHospitality Calls for better Government Support to tackle energy costs

UKHospitality has called on the UK Government to introduce targeted energy support for hospitality businesses as rising energy costs continue to place pressure on the sector. The call highlights a growing challenge for hotels, restaurants, pubs, and leisure businesses: energy is no longer just another operating cost. It has become a major business risk that can affect margins, pricing, staffing, investment, and customer experience.

Hospitality Businesses Remain Highly Exposed to Energy Volatility

Hospitality businesses are naturally energy intensive. Hotels, restaurants, pubs, cafés, and leisure venues rely on energy every day to keep operations running. From heating and cooling to refrigeration, lighting, kitchens, laundry, guest rooms, and back-of-house equipment, energy is central to the customer experience. When energy prices rise, hospitality operators have limited flexibility. They cannot simply turn off essential systems without affecting service, comfort, food safety, or operational performance.

Targeted Government Support

The organisation has raised concerns around energy contracts, supplier behaviour, rising deposits, and the wider cost burden facing hospitality businesses. Its proposals include measures to bring more stability to the business energy market, support businesses moving out of fixed-term contracts, and reduce the impact of non-commodity charges. For many operators, this type of support could provide much-needed breathing room at a time when other costs, including wages, food, insurance, and supply chain expenses, are also rising.

UKH chief executive Allen Simpson

UKH chief executive Allen Simpson is calling for government support

Energy Is Now a Strategic Business Risk

The hospitality sector has already faced years of pressure from inflation, labour shortages, changing consumer behaviour, and rising supplier costs. Energy volatility adds another layer of uncertainty. For businesses coming out of fixed-term contracts, the risk can be particularly high. A business that was previously protected by a lower rate may suddenly face much higher energy costs, increased deposits, or less favourable contract terms. This makes energy planning more important than ever. Hospitality businesses need to understand not only what they are paying, but also where energy is being used and where avoidable waste may be happening.

UKH chief executive Allen Simpson wrote: “Businesses within the hospitality sector are increasingly concerned about the impact of the crisis in the Middle East and how this will affect our already strained sector.”

How Watt Footprint Helps Hospitality Businesses

Watt Footprint helps businesses gain full visibility over their energy use through real-time monitoring, accurate reporting, and practical insights. For hospitality operators, this means being able to identify where energy is being used, where costs are increasing, and where waste can be reduced. Our platform helps businesses move from reacting to energy bills to actively managing energy performance. By combining live energy analytics with expert support, Watt Footprint helps hotels, restaurants, and hospitality groups reduce waste, improve efficiency, and make better long-term energy decisions.

Paul Mahon

I’m CEO & Co-Founder of Watt Footprint and regularly speak on energy and sustainability at industry conferences, events and across media on the commercial realities of energy and the challenges businesses are facing.

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