The Party’s Over: London Nightclubs May Shut Over Energy Prices

Britain's nightlife, which struggled to survive when the Pandemic kept people at home, is facing an uphill battle again.

Consumer confidence is at a record low and many people are cutting out their non-essential spending because of inflation.

According to the Night Time Industries Association, the trend is threatening to close more establishments that have helped make the UK a destination for tourists and which contributed more than 50 billion dollars to the economy before the swine flu epidemic.

The owner of the Egg London nightclub near the King's Cross said it has been a difficult time. We re-opened a year ago and are now facing inflation.

Many of his concerns are present. In a letter to the government this week, five organizations called for action on energy prices. With the cost of natural gas more than tripling since May and pushing up power prices, more companies are finding costs are starting to eat into their earnings

Many promoter are frozen in the face of huge bills because of the result. More than half of nightlife businesses have not yet renewed their gas and energy contracts, and some have reported a 37% increase in costs from pre-pandemic levels.

Marco Di Rienzo is the owner of Santoni, a restaurant in Yorkshire. It is almost double what he pays. One of the reasons he is closing his business is the high energy costs.

It is getting worse by the day. According to a report from Cornwall Insight, businesses that delayed renewing their energy contracts could see prices increase five-fold.

Robert Buckley is head of relationship development at Cornwall Insight. He said that action is needed so that companies with heritage and roots are not washed away.

Regulators will allow consumer bills to rise again in the autumn despite the fact that households have been protected from a surge in energy costs at the wholesale level. That could push inflation past 13%, the highest in 40 years, and tighten the grip on income that some people spend in bars and clubs.

When the cap on charges is allowed to increase again in October, consumer bills are expected to increase.

Consumers are complaining about the bills. Wages adjusted for inflation fell 3% in the second quarter, the biggest decline in more than two decades, according to government data.

That makes it harder to draw in customers.

We are giving away tables and free entries as part of our drinks deals. The only way to hit our weekly targets is by hitting them.

He has replaced appliances, curbed use of gas, and begun looking for ways to reduce the club's energy footprint.

Lobby groups have called for lower taxes and a cap on businesses' energy bills.