Club may close its clubhouse due to 600% rise in energy bills

A golf club in Swindon has become the latest to say its future is uncertain due to soaring energy bills.

Last month Newburgh-On-Ythan Golf Club in Aberdeenshire set up a crowdfunder ‘to help stabilise and secure the future of the club’ due to rising energy costs, and now Broome Manor Golf Complex has said its energy bills have increased from £25,000 per year to £164,000.

Jeremy Sturgess, a director of Twigmarket, which runs the club said he was “desperate not to close” the clubhouse but the rising cost of energy was “unsustainable”.

“We are fighting for our survival,” he added. “I’ve just got the bill for September. In August we paid £8,500 and in September it’s going to go up to £12,000.”

A posting on the golf club’s Facebook page said it would be ‘suicidal’ for them to open the main clubhouse, which was making a loss anyway, following the 600 percent annual increase to the electricity bill.

‘Twigmarket will be urgently considering emergency plans to temporarily close the clubhouse until this crisis passes (or the government clarifies the support it will give businesses) to preserve cash flow and to ensure that the overall business remains solvent,’ it states.

Broome Manor Golf Complex. Image from Facebook

‘The golf courses and the driving range (where all light fittings are being switched over to LEDs at a cost of £15,000 and which remains viable despite identical percentage cost increases) will certainly remain open. The golf shop will also remain open.

‘Any closure of the building, if it takes place, will be intended to be temporary. These are extraordinarily difficult times for all small businesses that consume energy and our priority is to simply remain in business so that we can continue to serve our customers, maintain employment and pay our rent and suppliers.

‘Let us pray for a warm winter and for our new prime minister to grant some timely assistance to businesses.’

Other clubs are reporting similar issues.

Bob Julier, the honorary secretary at Churchill & Blakedown Golf Club, detailed his recent experience of renewing his energy contract, which expires at the end of October.

“We are a small club in the Worcestershire area, our current annual bill for electricity runs at around £13,000 per annum.

“In August the prices I was quoted put this up to £48,000 per annum, for electricity supply. A four-fold increase! And in September the latest quote I’ve received is for £75,000!

“The effect on our industry, and small businesses in general, will I feel be catastrophic if the prices remain at current levels.”

Energy prices across Europe rose sharply when lockdowns were lifted, and have increased further as Russia has sharply cut its supplies of gas to Europe. Some economists have also argued that ‘green levies’ have led to energy bill inflation in recent months. Even though consumers are facing huge increases in utility bills in the UK, there is still a cap for them on the unit price of gas and electricity. However, this cap currently doesn’t apply to businesses.

New prime minister Liz Truss is expected to announce a new energy cap for both businesses and consumers this week.