Pubs and brewers across the UK are in danger of closure within months, industry bosses have warned.
The recent spike in energy bills of 300% means that some pubs will struggle to pay bills and even find suppliers willing to power their venues when contracts come up for renewal.
Bosses at six of the UK's largest pubs and brewing companies have signed an open letter to the government, urging it to take action and avoid "real and serious irreversible" damage to the sector.
Greene King, JW Lees, Carlsberg Marston’s, Admiral Taverns, Drake & Morgan and St Austell Brewery have all sounded the alarm.
The invasion of Ukraine by Russia has been a large contributor to the soaring gas prices - and just last week, regulator Ofgem confirmed that bills for the average household would leap by 80% in October when the new price cap comes into force.
Pubs and other businesses aren't protected by a price cap, and so some pub owners have warned that their bills have quadrupled.
In some cases, they struggle to even find energy providers that are willing to take on their business.
William Lees Jones, managing director of the JW Lees pub group, said: "We have publicans who are experiencing 300% plus increases in energy costs and some energy companies are refusing to even quote for supply.
"In some instances, tenants are giving us notice since their businesses do not stack up with energy at these costs.
"These are not just pubs but people’s homes and the hearts of the communities that they sit in.
"Government needs to extend the energy cap to business as well as households.”
Nick Mackenzie, chief executive officer of 2,700-strong group Greene King, said one tenant has seen their energy bill jump £33,000 for the year.
He said: "While the government has introduced measures to help households cope with this spike in prices, businesses are having to face this alone, and it is only going to get worse come the autumn."
The bosses, who sit on the board of British Beer and Pub Association (BBPA) have demanded the Government introduce an urgent support package that caps the price of energy for businesses.
It comes as knock-on effects from rising energy bills are also impacting the sector, with CF Fertilisers, one of the UK’s biggest CO2 producers, revealing it will halt production at its remaining UK ammonia site due to rocketing costs.
Brewers have warned that they could face disruption if there is a shortfall in supply of CO2, which is used in the production of some beer.
A government spokesperson has said it will continue to support the hospitality industry in the months ahead.
They explained: "That includes providing a 50% business rates relief for businesses across the UK, freezing alcohol duty rates on beer, cider, wine and spirits and reducing employer national insurance.
"This is in addition to the billions in grants and loans offered throughout the pandemic."
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