UKHospitality has written to the Energy Minister Kwasi Kwarteng MP calling on the Government and Ofgem to investigate unfair practices in the energy market.
The trade body has been contacted by hospitality businesses with evidence that they are being unfairly targeted by energy firms.
UKHospitality chief executive Kate Nicholls said: “It appears that hospitality businesses are being singled-out by energy providers. Prices being quoted are significantly higher for our sector than others and we are even seeing instances of businesses being asked to pay extortionate deposits up-front. One of our members has been instructed to pay a £60,000 deposit for a singe site hotel.
“This behaviour would be wholly unacceptable at the best of times. When it is happening while so many businesses are trying to recover from the COVID-19 crisis and while so many jobs are still on the line, it is totally beyond belief.
“The Government and Ofgem must investigate this immediately. Our sector has already been hit the hardest of any. It can not afford to be unfairly squeezed like this right at the moment it is expected to play a role in the recovery of the economy.”