Star Pubs and Bars launches energy deal to support licensees
The one-year energy supply deal with British Gas aims to ‘cushion licensees’ from the anticipated price hikes this autumn as the pub industry continues to suffer
Star Pubs and Bars has announced the successful negotiation with British Gas to supply a new energy deal for the company’s licensees amid the energy crisis.
This one-year energy supply deal aims to “cushion licensees” from the anticipated price hikes this autumn. Following the collapse of several energy firms, licensees are also concerned about the security of supply from lesser-known operators.
With many energy companies viewing the hospitality sector as risky, Star licensees have been reporting that they can only get energy supplied by signing up to contracts with premium prices, lengthy terms, high security deposits and hidden extras that add up to 60% to their bills.
Star Pubs and Bars’ energy scheme, which is run by its energy partner, Inspired Energy, is reportedly designed to address these issues. Under the programme, Star will bulk and forward buy energy from British Gas on behalf of its pubs at times when the market is lowest to “ensure competitive prices”.
Licensees sign up to a one-year agreement to protect against the anticipated surge in energy prices this autumn, whilst offering flexibility to renegotiate their contracts in autumn 2023 when prices are expected to fall.
There are also no additional charges and will be subject to approval on a “pub-by-pub” basis, which currently do not require deposits.
Participating pubs will reportedly have access to an online portal to help them track and reduce energy consumption for the establishment. This, combined with Smart Metre installation, aims to improve billing accuracy and reduce the need for estimated bills.
Mark MacDonald, head of pub services at Star Pubs and Bars, said: “Energy is a pub’s second biggest cost after wages, so the current energy issues are a major challenge for the trade. The energy market is complex, and people need expertise to navigate the terms and conditions of the different agreements.
“Some of the four and five-year contracts available look attractive now, but could prove very expensive when the market corrects. Our aim is to simplify the process of securing a good energy deal for our licensees by creating a transparent agreement built around their best interests.”
He added: “All of our 140 managed-operator ‘Just Add Talent’ pubs will be on it. By using our managed pubs’ buying power, we’re able to offer great rates and terms to our leased and tenanted licensees, too.”
Star Pubs and Bars reportedly receives no financial benefit from its energy scheme.
