The Association of Convenience Stores (ACS) has called on the Business Secretary to extend the Energy Bill Relief Scheme until at least April 2024 as thousands of local shops are at risk.
Current support available to businesses who renewed their contracts after 1 December 2021 includes a wholesale price set at 21.1p per kWh for electricity and 7.5p per kWh for gas, however this is set to expire by March 2023.
As a result, ACS has warned that store closures will be inevitable if local shops don’t see an extension to this support.
It says convenience stores are facing electricity rates upwards of 90p per kWh from April next year which equates to up to £4.3 billion across the sector, an average of over £88,000 per store.
“The Energy Bill Relief Scheme has provided a lifeline for thousands of convenience stores, but without longer term support retailers tell us that they may be forced to close, or at best cancel investment and make difficult decisions about staffing and service provision in stores,” ACS chief executive, James Lowman said.
“The case for supporting convenience stores is clear, we provide over 405,000 jobs at store level across the UK, we are the business type that has the most positive impact locally, and we provide an unparalleled range of products and services on people’s doorsteps.
“The closure of a convenience store in any community is an enormous loss, so we believe that our sector represents the best return on investment for Government looking to provide targeted support.”
This comes as the UK convenience sector has grown by 4.1% during 2022, generating revenues of over £47 billion over the last 12 months with an estimated 31,763 convenience stores across the UK.
This number has increased by 1.7% in the last year alone, with both symbol groups and supermarket chains focusing on the local shopping experience.
