Iceland boss Richard Walker has urged the government to introduce energy price caps for businesses as soon as possible.
Speaking on Good Morning Britain yesterday morning, the managing director said that he while he is concerned for his customers, his main worry is energy prices rates for businesses.
He spoke openly on how if the government doesn’t start to intervene, retailers will start making a loss this winter.
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“It’s incumbent on us to do whatever we can,” Walker said.
He added: “I worry about our customers first and foremost, as their energy prices are going £70 a week and some only have £25 to spend on food every week to feed their families.
He noted that the frozen goods retailer have already established various methods to assist consumers with the cost of living crisis, including a £1 price freeze, discounts for people over 60, and zero-interest micro loans.
“However, my real concern going forward is energy price caps for business.”
He added: “80% of businesses from next month will be unhedged, where supermarkets will have to start buying on the open market leading to higher prices and inflation for our customers.”
Usually, companies will purchase stock and produce ahead of time and lock-in a certain price with suppliers.
However, being unhedged means there is no guarantee of a price lock, so retailers will have to resort to buying on the open market which is far more expensive.
“We can’t wait until November, our energy use as a supermarket is larger than others due to our fridges and freezers,” the Iceland CEO said.
“That’s why the government needs to get a grip on this.”
