Government pledges energy saving support for over 500 hospitality firms

More than 500 small and medium-sized pubs, restaurants and hotels are eligible to receive free support to reduce energy bills, the government has announced.

The Department for Energy Security and Net Zero has unveiled Zero Carbon Services, a digital carbon reduction tool backed by £350,000 of government funding.

By providing real-time alerts, the service is designed to help hospitality operators reduce unnecessary electricity usage from extraction systems, fridges and ovens.

During a 12-month trial period, the energy saving tool helped slash the average energy bills of 90 hospitality businesses by nearly £2,500.

A pub in Bromley, for example, cut its energy usage by 26%, while a smaller pub in Surrey was able to make savings of over £1,500 a year thanks to a 66% reduction in overnight energy use.

Applications have opened to allow 525 hospitality businesses to participate in the energy and cost-saving scheme.

It comes as many operators brace for increases to energy bills as a result of recent conflict in the Middle East.

Over the weekend, prime minister Keir Starmer confirmed “vulnerable” households will be eligible for a £53m support package to alleviate rising heating oil costs amid the Iran war.

Chris McDonald, minister for industry, said of the scheme: “We’re extending support to help more businesses slash bills and protect Britain’s hospitality sector. 

“Our pubs and restaurants are playing a leading role in cutting emissions, which is not only good for the planet but for cutting their costs too. 

“Alongside this, our clean power mission will protect businesses in the long-term. The conflict in the Middle East is yet another reminder that the only route to energy sovereignty is to end our dependence on fossil fuel markets we do not control and transition to clean homegrown power.” 

Mark Chapman, chief executive of Carbon Zero Services, added: “When you put energy savings into real hospitality terms, the impact becomes very clear. Saving around £2,000 a year is the equivalent of the profit from selling thousands of pints, or the breathing space that protects hard-won margins during quieter months.  

“We’re showing that climate action doesn’t have to be a trade-off. When energy is managed better, businesses become more efficient, more resilient and better placed to invest back into their teams, their venues and their future.” 

Mark Holden, company director of Inn Cornwall, commented: “Thanks to the energy and carbon reduction tool, we’re already looking to save £5.01 each day from a few easy-to-implement changes. We will do this across our other sites, which could mean we’ll save £5,400 a year. The Energy and Carbon Reduction Tool is going to help save a lot of family businesses in the hospitality sector.”