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Businesses should have their utility costs subsidised by the government for six months to help recovery following the coronavirus pandemic, Yu Group’s chief executive has suggested.
Bobby Kalar, who founded the pan-utilities business supplier in 2014, believes such backing would give a much-needed boost to businesses after months of economic slowdown.
There has been much concern from energy suppliers lately about the effect the pandemic is having on their business customers and talks are ongoing between industry and government.
While emergency measures have been agreed between government and suppliers to keep the most vulnerable domestic customers on supply, retailers are understood to be split over what assistance the Department for Business, Energy and Industrial Strategy (BEIS) should give to alleviate the pressures of the pandemic.
Kalar said he would like to see government step in to pay energy and water bills for on behalf of businesses while they recover. Kalar added that from a practical point of view it would make sense for the money to go directly to the supplier.
Speaking to Utility Week, Kalar recognised the need to act differently in the current climate.
He said: “In unprecedented times you have to act in a manner you would have never considered before. It would not require large government subsidies and would take the problem off the table for a period of time until industry can get back on its feet.”
“It will allow businesses to get back to normal and firing on all cylinders again. More help from government would absolutely be welcome as I fear a domino effect of companies who close their doors because support is too little, too late,” he added.
Earlier this week Yu Group announced it was introducing a tariff offering customers up to two months’ worth of free energy.
Kalar added that this was the company’s way of supporting businesses through the crisis.
“The view from Yu Group is that we needed to design something that can contribute towards supporting businesses during Covid and help them with the burden of energy payments over a period of time,” he added.
According to Yu Group’s latest financial results, the company made an adjusted EBITDA loss of £4.2 million, compared to £6.3 million the year previously. Revenue meanwhile was up by 38 per cent to £111.6 million, compared to £80.6 million in 2018.
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