UK Farm Faces $17 Million Bill for Natural Gas As Energy Prices Rocket
- A farm in the UK is facing a $17 million gas bill as energy prices soar across Europe.
- British businesses face the risk of a sharp rise in gas prices this winter.
- According to some estimates, around 500,000 jobs in the UK are at risk as companies cannot afford the cost.
A UK farm faces $17 million a year in greenhouse gas heating bills as soaring energy bills threaten hundreds of thousands of jobs.
Jimmy Russo, head of Valley Grown Nurseries in Nazeing, Essex, north London, said his gas bill could rise from £900,000 ($1.1 million) to £14.6 million ($17.2 million). That’s nearly triple the 5 million pounds ($5.9 million) he expected in sales of peppers, tomatoes, cucumbers and eggplant products.
“Without government support, we would have had to cut 130 employees and leave,” Russo told the paper. “I am very concerned about the future of UK economic growth.”
Tens of thousands of jobs are at risk as a surge in energy bills has forced bars, restaurants and hotels to consider closing their doors for part of the week, or even completely this winter.
Kate Nichols, chief executive of lobby group UKHospitality, told The Sunday Times that up to 10,000 businesses could close over the next 18 months, putting more than 500,000 jobs at risk in the hospitality industry and its supply chain alone.
Vladimir Putin’s decision to invade Ukraine and limit supplies to Europe means higher gas prices soar all around the world.
Gas and electricity bills faced by UK consumers increased by an average of 80% to £3,549 ($4,200) a year.picture can even jump It will be as high as £7,263 ($8,500) next April, according to energy consultancy Auxilione.
While household bills are subject to price caps set by energy regulator Ofgem, UK businesses have no such protection, meaning price increases are technically unlimited when existing contracts expire.
There are no clear plans to help consumers and businesses cope with Boris Johnson’s resignation as prime minister. Liz Truss, the likely foreign secretary to succeed Johnson, has vowed not to offer “handouts” to the government, but many commentators say she has no choice but to change tack.
in an interview with the GuardianDaniel Mussard, owner of the eight-bedroom Bennachie Lodge near Aberdeen, Scotland, said it might be cheaper to close the hotel this winter than to offer heated rooms to guests, as his bills start at £2,780 ($3,300) jumped to over £6,000 ($7,000).
“It’s a real and imminent concern that it could be more expensive to operate than we make, and it just means we’re closing the door to cut losses.”
The owners of The Rose and Crown pub in Bebbington, near Liverpool, England, tweeted that the pub faces energy bills of more than £60,000 a year – a sixfold increase since May.
— Rose and Crown (@RoseAndCrownBeb) August 27, 2022
In another tweet, the owner told Johnson: “I know you’ll be out of a job in a few days, but you’re still @trussliz Are there any plans for how to combat these energy prices? “
Another business, which operates around 20 pubs in south-east England and employs around 400 people, told The Sunday Times its energy bill will quadruple to £2 million ($2.3 million). “Our company isn’t making a profit to be able to do that.”