A North Tyneside business owner has slammed the Government after his energy bill increased from £350 at the beginning of the year to more than £1,600 in October.
Shawn Darling-Cooper opened Kork in Whitley Bay with his wife and business partner Claire just two weeks before the first Coronavirus lockdown in March 2020. The independent deli and shop, which specialises in natural wines, has battled on throughout that period but Shawn says that the current energy crisis could be the "final nail in the coffin" for him and several other small independent business owners.
The 44-year-old revealed in a post on an Instagram that his bill from supplier E.On Next covering September, before October's prices were due to go up, was £1,673.50, which he has worked out is a rise of around 378 percent. This is despite only having "a few fridges and lights" in the shop on Whitley Road.
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Shawn said: "We were paying 15 - 20p per KwH at the beginning of the year, but it's went to a minimum of around 50p. Things are going up massively and I don't think many small businesses are going to be able to sustain this and be around this time next year - it's quite a strange situation we're in."
Bills are now coming in at a minimum of 50p per KwH, and he is expecting it to rise further to around 70p per KwH. And Shawn is worried that Kork will not survive the winter unless something changes.
He continued: "It's at the point where it will close my business down if I decide to start paying it. That's £1,700 a month for a shop which, if I'm entirely truthful, we are already struggling as we had a quiet summer."
Shawn worries that the cost of living crisis is forcing people to cut costs and they are more likely to turn to supermarkets than small, independent retailers like Kork. He has had to pass price increases onto his customers, and has already had to let a member of staff go in an attempt to balance the books.
And he says he's feeling angry and tricked. He continued: "Britain is very, very positive of shop keeping and small businesses, but it seems behind the scenes that the Government have created this crisis by letting energy companies charge whatever they want for no apparent reason, which hasn't happened in other European countries."
Shawn would like to see more from the Government, who he says claim to support small and medium businesses on paper but not in reality. He said "They're very much pro-SME on paper, but when it really comes down to it, power is something every single business relies on, and they're not supporting us.
"First of all, I'd like to see a justification for the jump, people would understand if we were on the same page as the Government. There has to be a limit, I'd like to see the Government come in and give a maximum KwH (price) for small businesses, to help small business become big business if possible."
"They support big business, so for the little people to get to that level, they need to support them. It can't be uncapped, they have to step in for commercial people and step in if your bill is unfathomable for your type of business - because at the minute it seems as though the energy companies can charge as much as they want."
Despite a lack of the support from the Government, Shawn has received messages of support and a few online purchases since he first put his post out on Instagram. He added: "From my customers, the support has been fantastic.
"I've had lots of positive messages and I'm starting to see the odd purchase of wine tastings via the website. I'm starting to see people but events for Christmas, that type of thing, you know to show support."
Despite the support from his customers and the local community, Shawn says that he doesn't want to do a fundraising drive. He continued: "I know a few people do a GoFundMe but I don't want to do that.
"I want people to be aware of the situation and that maybe reminds people of Kork and then they come in and buy something. That's what helps me, people purchasing, rather than doing a GoFundMe and people forgetting about us two months later."
An E.ON spokesperson told ChronicleLive: "People are acutely aware of the crisis in global energy markets and the impact on customers’ bills around Europe. We know these are difficult times and we’d urge any customer who is struggling or has concerns with their bills to get in touch as there are ways we can help.
"We will be contacting this customer directly to explain the situation and resolve any particular issues with their account."
A Government spokesperson said: "This Government knows this is a difficult time for small businesses and we remain firmly on their side. That is why we have put in place our Energy Bill Relief Scheme which means they will pay less than half the predicted wholesale cost of energy this winter.
"We have also cut taxes for businesses, including by increasing the Employment Allowance and cutting fuel duty, and we will continue to help them navigate the months ahead."
What do you think the Government should do to help small independent businesses to get through the cost of living crisis? Let us know!
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