Cost of living: Off-grid businesses are being forgotten

A Welsh cheesemaker believes businesses who use off-grid energy are being "forgotten about" by the UK government.

John Savage-Onstwedder said his energy costs are "going through the roof".

Oil and liquefied petroleum gas are not covered by the energy price cap which came into force on October 1.

The UK government said off-grid households will get an extra £100 on top of a £400 payment going to everyone.

It also said details of support for off-grid businesses are expected to be announced soon.

Mr Savage-Onstwedder, who owns Caws Teifi Cheese in Llandysul, said his company struggles with the cost of the alternative fuels for heating.

His business uses liquified petroleum gas (LPG) to heat its buildings and the milk as it is made into cheese.

The price John pays for LPG has increased from 40p a litre to 82p a litre. His annual spend on fuel and electricity has increased from £20,000 to £40,000.

John said the government's energy support package is not creating a level playing field for businesses.

"If I were making cheese in the urban area, or in the city, I would have the benefit of the price cap of the mains gas and electricity, but living in a rural area we are disadvantaged".

He has already put up the price of cheese to help cover rising costs, but fears doing so again risks pricing himself out of the market.

"I have twenty-two people [employees], it's not just twenty-two people, it's also their families, it's about forty people that depend for their livelihoods on what we do here

"Why do we have to wait so long in rural areas? It's already been announced for people living in the cities, we're at the bottom of the pile and forgotten about really."

Independent fuel supplier Oil 4 Wales has introduced a one-off delivery of 800 litres of free heating oil for customers aged 80 and over who have been with the company at least two years.

"The elderly especially are struggling", said founder Colin Owens.

"We hear it every day, people on the phone who've lost loved ones.

"They're desperate, they can't afford the fuel the way prices have gone."

He said the company acted in part because of uncertainty around how government support for people living off-grid would work.

"Central government have made a statement and made some money available.

"My own trade organisation -UK and Ireland Fuel Distributors Association (UKIFDA)- emailed me the other day: 'there is more money available, but we don't understand how we get it'.

"Nobody knows. It's illogical", he added.

One of those benefitting from Oil 4 Wales's scheme is retired engineer Alan Ellis, 92, from Llangain.

He feels fortunate that with support and some cutting back he can just about afford his energy costs.

He said: "Everybody is going to have to think twice before they actually turn the thermostat up, and I'm one of those who'll be doing just that."

Campaign group the Countryside Alliance said the government's extra £100 payment for off-grid households is a "drop in the ocean".

"Rural communities are losing out because the policy hasn't been rural proofed", said Rachel Evans; the organisation's director for Wales.

A UK Government official said: "We recognise people are struggling with the rising cost of living, including those who use heating oil to heat their homes.

"That is why, in addition to a payment of £400 from October to March and a two year Energy Price Guarantee for their electricity costs, we will provide a further payment of £100 for households who are off the gas grid."