"My Energy Bills Doubled Overnight"

Kate O’Shea, who runs the popular Tough Mary’s Bakehouse in Nottingham, says high energy costs add extra pressure to small businesses.

“We pay about £2,000 a month on energy costs, but we get surges seasonally. In August, our energy bill was £2,700 compared to £1,700 in July, as we were running our air conditioning unit so heavily during the summer. We’re in a great spot on Derby Road, but the sun shines directly onto our windows and we run three industrial ovens, so we struggle during hot weather.”

“We do try to be conscious of ways to make our energy cheaper. But when you’re running five giant ovens a day, there’s only so much you can do.

“We’re on a split tariff, so our energy is cheaper at night, and so we do a lot of our baking in those night hours, which is great. But sometimes people forget and leave the air conditioning on overnight, and we have two air conditioning units, so this adds up. We also have sensors in the basement so the lights automatically turn off when people aren’t there.”

“Small businesses need more creative solutions for energy support. Grants are too focused on lighting and bulbs.” - Kate O’Shea, Tough Mary’s Bakehouse

When it comes to sourcing more affordable energy, Kate says it's challenging for small business owners - and it's easy to be misled with the wrong advice.

“I probably should look into our energy more, but sometimes I just feel like there’s not that much we can do. As a small business owner, you get constant cold calls. It’s easy to get talked into something on the phone when you’re juggling everything else. You want to trust someone who says they’ll sort it out for you. But sometimes you don’t get the time to sit down and properly think it through.”

Kate shares that bad timing saw her energy bill double overnight due to the war in Ukraine.

“I made a bad decision a few years ago when our bills were about half of what they are now. I agreed to a five-year deal that was meant to kick in while I was on maternity leave, but there were some delays with signing, and by the time I came back to review the contracts, the war in Ukraine had started, and prices had soared. So, we’re paying over the odds because I signed at the wrong time. It’s frustrating, but I’ve had to come to terms with it. It’s a bit like mortgage rates – if you have to renew at a bad time, there’s not much you can do."

For Kate, whose popular bakery is a must-visit in Nottingham, rising energy prices have had an impact on the day-to-day operations of running a business:

“Our bills doubled overnight with the new supplier – that’s at least £1,000 a month. That money could have gone to staffing. It’s forced us to tighten belts, save rather than spend, and put off new investments. We raised prices in April, but that was due to a mix of things: higher energy costs, the minimum wage rise, increased NI contributions, and business rates. Energy wasn’t the only factor, but it all adds up.”

As an appliance-heavy bakery, Kate shares that she has tried to find creative ways to reduce energy costs.

“The ovens are the big one when it comes to energy, as they’re on for so long. We also have mixers, coffee machines, and dishwashers, which also draw a lot of energy, and the air conditioning too – especially since it’s cooling while the ovens are heating."

Kate, who is passionate about the environment, says it can be challenging for small businesses to balance the cost of going green with customer demand.

“Green energy is important to us, but as a power-hungry bakery, it’s hard to justify. Customers want affordable bread – not a £6 loaf just because we’re buying green energy! I’d love to go greener, but realistically, it’s a balancing act.”

Whilst there are some grants available to support small businesses, Kate highlights that the solutions aren’t always realistic.

“I applied for a grant through the council for an awning, which would be installed over the windows to block out the sun and would reduce the need for air conditioning. But the council said it didn’t qualify. Grants seem focused on things like lighting or double glazing, not more creative solutions.”

When it comes to support, Kate says information is key for small businesses.

“Honestly, we just need clear information. It’s impossible to know what the average market price is for business energy. If I could quickly check whether a deal was fair, that would be invaluable. For consumers, that data exists – but not for businesses."

Hospitality Energy Calculator: New Tool to Calculate Real Energy Costs

In light of the findings, we've launched a business energy calculator that helps small business owners in the hospitality sector calculate their energy costs and see if they can get a better rate. The interactive tool lets hospitality business owners assess their energy costs based on the number of appliances they have, enabling more accurate estimates and comparisons.

To compare hospitality energy costs, visit our energy hub.