The boss of Iceland said he has been forced to pause new store openings after its latest energy bill rose by £20million.
The huge increase has left managing director Richard Walker with no choice but to send an urgent plea to No 10, requesting an immediate cost of living package to help support struggling retailers.
Mr Walker says that extortionate costs have left his business “fighting to keep the lights on” and is calling for an energy price cap for businesses in the UK.
Speaking to The Guardian, he raised his fears about a “half-baked response” from newly appointed Prime Minister, Lizz Truss.
He worries that her plans will fall way short of addressing people’s needs as banking giant Goldman Sachs warns that UK inflation could top 22% next year.
Mr Walker is particularly critical of Liz Truss’ plans to cut business rates for small and medium businesses as he believes it “won’t even touch the sides”.
“What they need to understand is [this affects] big business as well as small, because it’s exactly the same trouble we’re in – there’s just more jobs at stake,” he added.
Since the retail chain is reliant on storing produce in fridges and freezers, its energy bills are expected to soar more than other supermarkets.
But Mr Walker has acknowledged that Iceland is “large and strong enough to ride out this storm”.
Many other suppliers are not, and will risk going bust, which will put thousands of jobs at risk.
Iceland saw its energy bill rise to £70million last year, equivalent to around 2% of its sales.
In the first quarter alone, its bill jumped by £19million, suggesting that it is on course to more than double this year.
The energy price cap covers domestic customers on standard variable rate tariffs (SVTs) - but there is no price cap for businesses.
The boss of Iceland isn't the only business leader to call for more support for struggling companies.
Celebrity chef Tom Kerridge has revealed the annual energy bill at his pub has skyrocketed from £60,000 to £420,000.
He said one of his pubs has a monthly electricity bill of £5,000 but this is set to rise to £35,000 in December.
Mr Kerridge has three pubs, all based in Marlow, Buckinghamshire - but warned how the hospitality industry as a whole is facing “harsh realities” when trying to stay open.
"There's no way that businesses are going to be able to absorb four, five, six hundred per cent price increases," he told The Daily Telegraph.
