Energy prices: Devon and Cornwall hotel business calls for more government help

Alex Horsfall said his hotel business was "looking everywhere" to cut costs

A luxury hotel business has said it faces a "doomsday scenario" if energy prices do not normalise soon.

Alex Horsfall, owner of The Valley holiday village, near Truro, Cornwall, and Mill End Hotel, Dartmoor, said the cost of energy was "extortionate".

His comments come as government energy bill support for businesses is set to be scaled back from April.

A government spokesperson said billions of pounds of support meant a big fall in wholesale energy costs this winter.

The government's new scheme offers a discount on wholesale prices, rather than a capped price.

Heavy energy-using sectors, such as glass, ceramics and steelmaking, will get a larger discount than others.

'Extortionate'

Mr Horsfall estimated his firm's bills would rise from £4,000 to £6,000 per month after support was cut.

Despite operating a restaurant, his business is not considered to be high energy-using.

Mr Horsfall owns Mill End Hotel on Dartmoor

"We're lucky in one respect because we've got rooms which help cover the electricity costs of the restaurant," he said.

"If a restaurant is not high-usage, I honestly don't know what is.

"With all the equipment you have in the kitchen - the fridges, the freezers, the dishwashers - it's extortionate, at the end of the day."

Mr Horsfall said the business could only afford to absorb energy costs for potentially one more year.

"If this carries on for a year or two, it will be a doomsday scenario," he added.

Buffy Smith called on the government to extend energy bill support for pubs

Buffy Smith, owner of The Victory Inn, Truro, said her bills had increased from £1,600 a quarter to the same figure per month.

"It's going to cripple all of us," she said.

"The lights, freezers, coolers - everything is on all day. It racks up to be quite a lot."

A government spokesperson said: "While no national government can control the global factors pushing up the price of energy and other business costs, we will always be on the side of businesses, including pub and bar owners.

"That's why we are providing them and other non-domestic energy users with billions of pounds of support which means some businesses will be paying around half of predicted wholesale energy costs this winter.

"We've pledged further energy support from April onwards."

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