Perthshire butcher Simon Howie has revealed his energy costs have increased 10-fold since the start of the crisis.
The entrepreneur has said it’s bringing a “significant” challenge to his butchery business.
He has been left with no choice but to pass on increased costs to customers.
“It puts a lot of pressure on the business,” he said.
“It means we’re having to do our best to pass these cost increases on.
“But that’s not an easy thing to do in the current climate.”
Energy firms accused of ‘bullying’
Mr Howie said the business’ price per kWh has increased 10-fold recently.
He also accused energy companies of “bullying” behaviour through its increase in prices.
“Energy is being priced based on the value of gas,” he added.
“Anecdotally the country can come off fossil fuels because we’ve got so much renewable energy, yet we’re finding the price of electricity is going up between five and 10 times.
“Why is that? We don’t produce most of it from fossil fuels. There’s only one gas fired power station in Scotland. Why are we being penalised by our energy costs?
“The answer is because energy has been thrown into a basket and everything has been priced on natural gas. I think that’s unrealistic.
“It’s like saying fish is up in price, therefore meat has to go up in price. That’s just not how it works.”
Alternative sources of energy
His business, which sells produce in supermarkets across the country, is looking at alternative sources of energy.
Mr Howie said: “We’re going to invest in more renewables.
“We have solar at the moment but we’re looking at other forms at the moment.
“Our aim is to come off grid within five years so we’d be producing all our own energy on site.”
Rise in sales for Perthshire butchers
The Perthshire entrepreneur was speaking as his firm, which has its main factory in Dunning, reported a rise in sales.
Accounts for Simon Howie Butchers Limited show a 13% increase in turnover for the year to December 2021, to £21.6 million.
It also recorded a £4.1m pre-tax profit, up from £3.6m the year before.
Mr Howie welcomed the results and praised the firm’s staff.
“We’re very happy – the results have been hard fought for, and we’ve got an absolutely brilliant staff.
“The key people in the business at all levels are doing a tremendous job.
“It’s very hard work staying focused and keeping the brand strong because the competition are very sophisticated and strong as well.
“We’re really pleased with the numbers last year.”
He did, however, concede that the challenges currently faced by all businesses mean forecasting figures for the current financial year is difficult.
“It’s very up in the air,” he added.
“You could have asked me that three months ago and I’d have given a different answer.
“We’ve resigned ourselves that we’re going to have two or three years where the numbers are going to be challenging.”
Conversation