Soaring energy and food prices bring instability to European hospitality

Gas and electricity prices have reached record levels in 2022 and are expected to remain high. 

The current situation – caused by the increase in food prices, labour costs, labour shortages, and high inflation – is producing a climate of unpredictability and fear of recession in the hospitality sector, which is still in the phase of recovery.

With the aim of tackling the high energy prices, on 14 September, the Commission proposed a Council Regulation (COM (2022) 473 final). Overall, the initiative includes the following points: 

  • Obligation to reduce electricity consumption by at least 5% during selected peak price hours, in order to reduce consumption.
  • A temporary revenue cap on ‘inframarginal’ electricity producers, targeting technologies with lower costs, set at €180/MWh.
  • A temporary solidarity contribution on excess profits generated from activities in the oil, gas, coal and refinery sectors.
  • Demand reduction targets:
    • Member States to reduce their gross electricity consumption by at least 5% during certain peak hours (binding target).
    • Member States to put in place measures (information and communication campaigns, calls for tender, financial incentives, etc.). to reduce their overall electricity consumption by at least 10% by 31 March 2023 (indicative target).
  • Setting up a European hydrogen bank.
  • Revision of the EU’s internal electricity market rules with a view to presenting a legislative proposal in early 2023.

As the idea of a gas price cap is currently diving the Member States, a working group counting with the participation of the Commission, Member States and Norway will be established. It is currently unpredictable if legislation will be issued on the topic.

It is now up to the Council to analyse and decide on the Council Regulation (the next meeting is scheduled for 30 September 2022).

HOTREC calls on the EU institutions to act in a coordinated way, in order to save businesses, especially SMEs. There is a need to decrease energy prices and allow companies to access energy supplies. Only in this way the hospitality sector can continue its activities and aim at being more energy efficient.

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29 Sep
29/09/2022    
All Day
On the 3rd edition of the International Day of Awareness of Food Loss and Waste (IDAFLW), celebrated on 29 September, the FAO and UNAP have [...]
Meeting Czech Presidency - Energy Performance of buildings
03/10/2022    
11:00 - 11:30
Outcome of the meeting available
05 Oct
05/10/2022    
16:30 - 17:30
Hotel At Six, Stockholm, Sweden   -     Meeting Room : Studio 8 Draft Agenda for ExCom Meeting on 5 October 2022, Stockholm, Sweden Welcome by [...]
06 Oct
06/10/2022 - 07/10/2022    
All Day
On 6-7 October 2022, HOTREC will organise its 85th General Assembly in Stockholm, Sweden.
17 Oct
17/10/2022    
10:00 - 12:00
On 17 October 2022, HOTREC will organise its Working Group on Short-Term Rentals (STR).
27 Oct
27/10/2022    
10:00 - 12:00
On 27 October 2022, HOTREC will organise a meeting of its Sustainability working group.
Events on 05/10/2022
Events on 06/10/2022
Events on 17/10/2022
Events on 27/10/2022