UK Restaurants Face Closure Risk "Annual Energy Costs Up by 6.9 Million Won"

[Asia Economy Reporter Haeyoung Kwon] The energy price surge caused by the energy crisis triggered by the Ukraine war is increasing the burden on households and businesses in the UK. Although natural gas prices have stabilized due to mild winter weather in Europe, the burden on households and businesses from soaring energy costs continues.

According to local UK media on the 26th, the Liberal Democrats analyzed that if the government reduces support for business gas and electricity bills, the annual energy costs for service sector businesses in London will increase by about ?4,500 (approximately 6.9 million KRW) per business. The UK government has been supporting part of the energy costs for businesses since September last year but plans to reduce the support amount starting from April.

According to the Liberal Democrats' analysis, among the surveyed companies, the annual energy costs for 260 pubs, restaurants, cafes, and other businesses located in London are expected to increase by an average of ?5,278. Small businesses with fewer than 10 employees, totaling 130, are expected to spend an additional ?3,889 annually. For 95 businesses with fewer than 50 employees, the increase is expected to be ?5,557 annually, and for 35 businesses with fewer than 250 employees, energy costs are expected to rise by ?9,677.

The local community expressed concerns that government energy bill support has been a "lifeline" for the service sector, but if the support is reduced, businesses may close and jobs may disappear.

Recently, mild weather in Europe has somewhat eased the rise in energy prices such as natural gas. According to energy market research firm Cornwall Insight, the typical household's annual energy bill is expected to decrease to ?3,209 per quarter in the first half of the year and ?2,241 per quarter in the second half. Thanks to the warm winter reducing energy demand, natural gas prices have fallen below pre-Ukraine war levels but remain higher than average. The burden of energy costs on households and businesses is still significant.

Kate Nicholls, CEO of UK Hospitality, said, "The government's energy support plan has been a lifeline for many service sector workers, but now many shops are closing, and jobs are at risk of disappearing."