GOVERNMENT LEAVING CONVENIENCE STORES HIGH & DRY AS ENERGY BILLS SET TO SKYROCKET | James Lowman

Podcast Radio Business Interviews

James Lowman, Chief Executive, Association of Convenience Stores,talks to Clayton M. Coke of Podcast Radio Business to discuss the plight convenience stores are facing and what they think the government should do.

The Association of Convenience Stores (ACS) is calling on the government to do more to help convenience stores as it says an estimated 6,900 across the nation are at risk of closure, putting more than 46,000 jobs at risk, because of them being stuck in excessive fixed contracts signed during the height of the energy crisis, causing bills to triple and, in some cases, quadruple.

ACS estimates about 40% of independent stores faced contract renewals between July and December 2022, while wholesale energy prices peaked. For an average-sized store facing rates of 95p per kWh, this would mean paying more than £75,000each year for electricity, compared to £20,000 in 2021, with governmentsupport at the proposed level (1.9p per kWh) only reduces the average bill by about £1,520 for the year – equating to only £60m in relief across the entire convenience sector.

At present, just £11m through the Energy Bill Relief Scheme has been allocated to these 6,900 stores, but the loss of their business will cost the Treasury £70m annually in direct tax income, not to mention the additional loss in revenuefrom VAT and excise duties and that is before the impact on the local community is considered.

ACS wants the government to provide additional support of up to £10,000 per store in the at-risk category to remain viable - at worst this would be cost-neutral to the Treasury - and to require energy companies to allow businesses to moveaway from the fixed-term contracts they entered into when prices peaked.