Paisley businesses being hit with soaring power bill hikes are seeing costs DOUBLE from last year - and one chippy owner is barely making minimum wage.
The UK Government recently introduced emergency legislation to help companies with their energy costs, but they will still be paying much more than they did in 2021.
It was revealed on Wednesday that businesses would have their energy bills limited, amid skyrocketing prices, with some being quoted up to five times the amount they were paying 12 months ago.
The energy cap for businesses could see savings of nearly 50 per cent of what was expected. But entrepreneurs in the town believe it is simply not enough.
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Monica Rapallini, who runs The Hippy Chippy, says she’s currently lucky to earn the minimum wage as a result of the increased costs of running the business.
The Broomlands Street chippy relies on gas to keep the fryers running and they use a lot of electricity to keep their fridges and freezers cold.
“I’m lucky if I’m making minimum wage after I’ve paid everything," said Monica.
She continued: “This business supports five families. We’re barely taking a wage as it is. It’s not like a house where you can turn your heating off, put a coat on or go to your bed.
"We can’t turn our pans off. We’ve got a pizza oven as well. There’s nothing we can do. We can’t cut down on our consumption anymore.”
The government scheme will fix wholesale gas and electricity prices for firms for six months from October 1, shielding businesses from crippling costs. Hospitals, schools and charities will also get help.
However, the costs could still be double what businesses were paying last year when the price per megawatt hour was £117, according to Ofgem.
The business department confirmed the emergency legislation will include a “supported wholesale price” expected to be £211 a megawatt hour for electricity and £75 a MWh for gas, which it said would be less than half the wholesale prices anticipated this winter.
Monica recently took the decision to close the take-away on Mondays due to the cost of running the shop being more than she was taking.
“I thought I’d save a wee bit on gas and electricity by closing," she added.
She has also noticed customers are spending less in the shop, choosing smaller portions as the cost-of-living crisis affects spending power.
Iain Stewart, of Iain Stewart Hairdressing in Causeyside Street, is also concerned about the future of his own business and those like Monica’s.
He said: “I am concerned about the increase, but I always think of the others even worse off than us.
"Those in the hospitality trade - yhey were shut for a year and half during the pandemic, we were only half of that. And now they’ve got to deal with this too. I’m worried about it, I really am.”
Iain believes the government should be putting a windfall tax on the profits of energy companies, who are set to make mammoth amounts of extra income from the rising prices.
He said: “I think the government could have done more. I would have liked to have seen a windfall tax put on the energy companies' profits.
"It’s not fair. I don’t think anybody can say what they're doing is fair.”
Monica agrees, and added: “I'm all for the windfall tax on the big companies. Let them pay for it.”
Scott Sloan, who owns The Cave with his wife Jen, said the cap announcement might just have saved them from having to sell up.
"Before, when our bills were due to go up four or five times what they were we were having some serious conversations about whether we would continue after the festive period, but if the bills aren't going to go up by as much, it may allow us to continue."
Business owners don’t need to do anything to receive the discount, the support will be automatically applied to bills. The savings will be first seen in October bills, which are typically received in November.
Paisley First is a business-led collaboration initiative, which aims to support businesses and attract visitors and residents to the town.
Colette Cardosi, chair of Paisley First, said: ”We are waiting for more information and clarity around the UK Government’s support package to learn what help this will provide in practical terms for our local businesses.
“It is clear that this winter will be another challenging period for our local businesses as they continue to recover from the pandemic.
“Both the UK and Scottish governments must do all they can to support these small independent businesses who are the heartbeat of our local communities.”
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