A pub owner who owns three Bristol pubs has spoken out about the “blatant profiteering” of gas companies during an energy crisis. Stephen Wallace was handed a bill of more than £7,000 after his three-year contract for the Golden Guinea in Redcliffe came to an end in January.
The gas company said he had accrued a debt of £2,994.62 as his monthly payments of £341 - measured by a smart meter - had not been covering his bills. Stephen was on a fixed-price contract that ended on December 3, 2022 and was subsequently placed on an out-of-contract rate until he moved suppliers on January 16.
“They charged just over £4,000 for six weeks in the period before they released me to move to another provider. Six weeks electricity only in a pub with only 40 covers,” Stephen explained.
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British Gas confirmed to BristolLive that Stephen’s account defaulted onto the company’s standard variable prices when his contract ended. A spokesperson said the charge of £4,024.59 for The Golden Guinea from that point to when he left British Gas was accurate, leaving him with a combined bill of more than £7,000.
‘Blatant profiteering’
Stephen continued: “It’s ridiculous, bearing in mind the profits that British Gas has released in the not-too-distant past and what they’re up to employing debt collectors. For a business this size, £7,000 is money we don’t have at this time. He said it feels like "blatant profiteering" and questioned the morals of the company for its use of debt collectors.
The gas company is forecast to post a record-breaking £3 billion annual profit with its chief executive Chris O'Shea being urged to reject a massive £1.6 million bonus as millions struggle to afford their energy bills around the country. Mirror Online reported British Gas debt collectors were breaking into vulnerable customers' homes to fit prepayment meters for those who are struggling to pay up, and the company has since suspended their warrant activity until the end of the winter.
In a statement to the Mirror, Mr O’Shea acknowledged: “There are clearly significant challenges around affordability and unfortunately, we don't see that changing anytime soon. We need to strike a balance between managing spiralling bad debt and being aware that there are those who refuse to pay and those who cannot pay.”
When BristolLive approached British Gas on Stephen’s case, a spokesperson said: “We’re sorry to hear Mr Wallace’s concerns over his bill. We will be contacting him to see what additional help we can provide.”
British Gas has since approached Stephen with an offer to reduce his money owed by £3,000 leaving him with a bill of around £4,000, which would have to be paid in full, or a slightly higher bill on a payment plan. He is currently considering his options.
Businesses in crisis from spiralling costs
The energy crisis has been another nail in the coffin for businesses after unprecedented years during the pandemic and now the repercussions of the war in Ukraine, which has had a huge impact on gas prices. Although energy bills are forecast to drop this year, the hospitality industry is still dealing with the repercussions of this, and Stephen thinks pubs are delicately balanced.
“We had a pretty rough time during Covid. I took on the Three Tuns in January 2020 so we had eleven weeks before we were shut down, but it’s never been the same since as it’s a big after work pub.”
The brewery industry is proving to be one of the worst affected, with around 84 announcing closures in the UK in 2022 alone. Stephen said the breweries are all facing huge price hikes, particularly as a lot of energy is involved to make beer. This has been made abundantly clear in the Bristol brewing landscape by the closure of Newtown Park and Wild Beer falling into administration - the latter of which has since been saved.
“Indirectly, all the breweries use huge amounts of heat and then they have to make everything cold again so prices are going up anywhere between 16 and 18 per cent. Even if you just pass that on to the consumer, that would cover the price of your beer rise but doesn’t factor in the other factors you’re dealing with like transport and you want to look after your staff as they’re facing costs. Everything is just more expensive.”
For now, Stephen, who also owns The Three Tuns and the Rising Sun in Windmill Hill, is weathering the storm and has made slight price increases to pints on sale at his pubs. He had developed a symbiotic relationship with Bristol breweries, ten of which are so local he could walk to, allowing him to keep his prices keen. Although he recognised his pubs aren’t the cheapest they’re far from the most expensive.
Stephen added: “My pubs post profits, not huge profits. We support local businesses and local people, but that’s getting harder and harder and I’m a big long in the tooth to go and do anything else.
“I don’t want to do anything else, the pub is an important British institution and there are lots of people who would be quite lonely who have formed friendships that go beyond the pub. This is more important than ever now. I don’t know where this is going to end.”
Stephen Wallace is the owner of The Three Tuns in Hot, The Golden Guinea and The Rising Sun.
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