An award-winning butcher shop in Kirkcaldy has revealed it may be forced to close due to high energy costs.
Pearson Hepburn Butcher and Poulterer, which celebrated its 50th anniversary last weekend, is paying an eyewatering 83p per unit for electricity.
Owners Craig Hepburn and Sean Graham say they can get a commercial electricity deal for under 30p per unit.
But current provider Smartest Energy refuses to allow the Valley Gardens shop to go on a cheaper rate.
It means they will be forced to pay an estimated £60,000 in electricity costs before the fixed-rate tariff expires in 2025.
“We won’t make it to 2025 if the cost of our energy stays the same,” Craig said.
“Smartest Energy is taking the biggest salary out of the shop, and they don’t realise that in six months’ there will be no contract as we’ll be closed.”
Kirkcaldy butcher faces closure
Craig, who followed in his dad’s footsteps by joining the family business in 1986, said: “We used to pay no more than £600, but now we are paying up to £2,500 for our electricity every month.
“When it was time to renew our contract, Scottish Craft Butchers, the trade organisation that represents the independent retail meat trade in Scotland, advised us to stick with our current energy provider which was supposed to be the best commercial option at the time.
“Obviously in hindsight we were given bad advice as were now getting a raw deal with Smartest Energy refusing to help us in any way.”
Gordon King, executive manager for Scottish Craft Butchers, denied this claim.
He said: “We have never said to any members that they should stay with a particular energy supplier.
“Throughout the energy crisis we advise people not to sign up for a contract any longer than six to 12 months.”
‘Game over’ unless energy costs reduce
Co-owner Sean joined the partnership in 2022 and won the prestigious singles award at Butcher Wars earlier this year.
He said: “We’re tied into the contract until 2025, but we were told by Smartest Energy that if energy prices were to come down our tariff would decrease.
“Now that prices have went down, we asked if they could review our tariff and, lo and behold, there is nothing Smartest Energy can do to bring the cost down.
“Obviously we weren’t happy with this and enquired about cancelling our contract with the company and they told us that there would be a £17,000 cancelation fee.
“If they listened to reason and lowered their tariff, we would be able to remain open and continue to pay them for the remainder of the contract.”
Sean added that the shop has been told it is not eligible for the UK Government’s energy bill relief scheme (EBRS).
Craig added: “Unless we get some help with these energy costs, I’m afraid that the business that my family has built for over 50 years will have to close.”
MSP to contact Ofgem
The pair have been backed by Kirkcaldy MSP David Torrance, who says he has been frustrated in his attempts to contact Smartest Energy.
A spokesperson said they received an auto reply when a case worker from the SNP’s office first contacted the company on August 4.
They say they then chased up Smartest Energy on two further occasions – August 12 and September 5 – but received no reply.
Mr Torrance said: “I have reached out to Smartest Energy multiple times to talk to them about Pearson Hepburn’s exorbitant energy costs.
“The company has blatantly ignored my requests, but I will not give up fighting for this long-standing business in Kirkcaldy.
“I will be contacting Ofgem regarding the practice of Smartest Energy, as the energy regulator has recently backed calls by the Federation of Small Businesses to allow small firms to ‘blend and extend’ fixed energy contracts they secured during the market peak last year.
“We need to give a lifeline to save our small independent businesses from closure due to greedy profiteering by these unscrupulous energy companies.”
The Courier contacted Smartest Energy for a response.
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