Aboyne businesses struggle as energy bills soar

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Ashleigh Davidson
Image caption,

Cafe manager Ashleigh Davidson fears she may have to lay off staff

Businesses in a village that contends with some of Scotland's most extreme temperatures say soaring energy prices may force them to close.

The mercury in Aboyne, Aberdeenshire, has regularly reached record-breaking highs and lows in recent years.

Local firms now fear sky-rocketing energy costs could force them out of business.

Analysis suggests bills for the average household could increase to more than £350 per month by January.

Consultancy Cornwall Insight has warned that yearly bills could hit £4,266.

The figures are worrying Aboyne businesses owners, who are already struggling with price hikes.

The Corner House Cafe, which has been open for more than 20 years, has seen its monthly energy costs quadruple to almost £2,000.

Manager Ashleigh Davidson branded the increases "criminal" and said it could lead to staff lay-offs and possibly closure.

She told BBC Scotland: "I don't believe we can absorb those costs. We've already increased our prices to absorb food increases, wage increases, etc.

"We don't want to pass it on to the consumer but we also want to keep the business going and I don't really know if it's viable."

Ms Davidson said the timing "couldn't be worse" as the country recovered from the Covid pandemic.

"We've been here for 21 years and this is the first time I've been really, really worried about our business, about our team," she said.

"We don't want people to lose their jobs, but the way things are just now nobody knows what the future holds."

Just a few doors down, Shariful Khan fears his Indian restaurant, Nurtaj, could close in two months after energy bills tripled.

Image caption,

Shariful Khan says the price hike has been "absolutely horrendous"

"It's been absolutely horrendous," he told the BBC, adding: "It's scary."

He said: "So many businesses are shutting down, which we don't want to do.

"It would be a great shame because we have been here for five years now and we have such a good reputation.

"But end of the day, if we can't survive we have to close down."

Ofgem's latest price cap – the maximum amount suppliers can charge customers for average energy usage in Scotland, England and Wales – is due to be announced at the end of this month. However, the price cap does not apply to businesses.

Boris Johnson has appealed to electricity companies to act "in the national interest" to help ease the pressure on vulnerable consumers in the face of soaring energy prices.

Following round table talks in Downing Street, the prime minister said the UK government would continue to work with the sector. However, he made clear any "significant fiscal decisions" would be for his successor.

The CBI business lobby group said it "made no sense to wait" for a new Conservative party leader.