Growers will be forced to raise food prices or halt production if the government does not intervene on new energy standing charges, the sector has warned.
Electricity standing charges are expected to increase by 60%-80% from 1 April, and an additional 60% by 2030.
With some glasshouse businesses facing up to £1m per year in additional charges, the British Tomato Growers’ Association (BTGA) and the Cucumber & Pepper Growers Association (CPGA) have said that the April deadline is a “cliff edge” for the sector.
“We are weeks away from unavoidable price rises for British tomatoes, cucumbers and peppers,” said Simon Conway, BTGA chair. “If the government doesn’t act before 1 April, growers will have no choice but to pass these costs on or stop production altogether.”
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The organisations said that without government intervention the UK would lose its ability to grow its own protected salad crops, therefore pushing more production abroad.
Conversations with Ofgem and Defra are progressing but, “delay any longer and we will permanently fall behind our European competitors and become increasingly dependent on foreign imports, commonly in water-scarce southern Europe or north Africa in the winter months”, the organisations said.
Protected horticulture remains locked out of the Energy Intensive Industries exemption scheme, despite operating at energy intensities comparable to manufacturing sectors receiving a 90% discount.
“This is a preventable crisis,” Conway added. “Without urgent action, domestic production will shrink, imports will rise, and consumers will pay the price.”
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