‘Everything has gone up so we’ve had to raise prices’
Angharad Thomas speaks to businesses in Pontypridd high street to see how they’re coping with being on the front line of the cost-of-living crisis
WHEN Marco Orsi switches off the lights at night at his family business, Café Royale in Pontypridd, it does not suddenly stop consuming energy.
“Energy costs are pretty high with businesses like this, I have coffee machines, microwaves, refrigerators, hot plates, lighting – when you open it starts taking over straight away and when you close it still consumes energy,” said Marco.
The 62-year-old’s business is one of many across Wales trying to navigate their way through a period of soaring energy bills. In Pontypridd some business owners have spoken of how they feel they’re in “uncharted territory”, and they are uncertain if the six-month Energy Bill Relief Scheme, which will see the government subsidise their fuel bills, will be enough.
Marco, whose business has been in Pontypridd since the ‘70s, added: “My energy bills have been constant as I’m in a fixed contact until December, but set to rise considerably after that. It’s uncharted territory, so we don’t know how it will affect us but everything has gone up so we’ve had to raise our prices. At the moment we’re just sailing along.
“It’s not been easy since the pandemic but it’s slowly getting back to normal. Although the day has completely changed with people working from home, it has decreased our trade. So we’ve changed our times to open and close later. But people still come out and spend time in Pontypridd.”
To combat the rise in energy bills he said they had changed to LED lights and they turned of electricity when possible. However, he felt the Welsh Government could do more to help.
He added: “Nationally, I’m happy how the government are trying to help independent businesses, but I think the Welsh Government should do more to help. Business rates will be an issue next April, but they could say now with clarity on what’s going to happen.”
His family café is situated in an old building and he believes the Welsh Government could offer more support during the cost-of-living crisis, such as by helping to fund insulating older buildings for the winter months.
Some business owners in the town have said energy bills have become ridiculous to afford, with bills almost tripling, but they still believe the future of Pontypridd’s town centre is bright and family businesses will continue to thrive as they have done for generations.
Gaynor Wood, 59, owner of Sugar & Spice toy shop in the market, said: “Market energy prices are different as their gas and electric are included in the rent which has gone up. They haven’t covered their costs so I think we might have another increase in the future, but we are lucky at the moment in retrospect. But the cost of living is going up and up, and all our manufacturer prices are going up.”
Christmas is the busiest time of year for any toy store and Gaynor is concerned about people’s spending habits this year.
She added: “Everyone’s having a squeeze on their pockets and I do worry if people can afford stuff but what we offer is a Christmas Club, so people can pay weekly or monthly – which helps people’s pockets and enables them to budget for what they need.
“The [Energy Bill Relief] Scheme will help me if the market can apply for it but I feel that six months is a bit of uncertainty – I’m not sure what’s going to happen next. I feel that six months doesn’t allow me to plan ahead as we plan for upcoming occasions, like Mother’s Day and Easter, months in advance. So knowing where your bills are going is important, six months is nothing really.”
Twana Ali, 35, opened his barbershop during the pandemic in July, 2021. He’s been a barber for many years, but this is the first business he has opened in Pontypridd. He said the energy bills had become ridiculous as he was currently paying almost triple for his bills – up to £350 a month.
Twana claimed that running a business had been difficult during the last seven months: “It has been hard opening a business during this time, we missed out on financial help from the government during the start of lockdown, as we were late opening due to the pandemic. I had to wait until July to open the business and it was hard.”
Twana also claimed that business had been quieter with the cost-ofliving crisis and he’d noticed the high street hadn’t seen much business.
“It’s not just energy, everything is going up – it’s crazy. If energy bills continue to rise it will be so hard for us, but there’s nothing we can do, and we’ll struggle.”
A Welsh Government spokesperson said: “We are doing all we can, with the resource and powers available to us, to help Welsh families, businesses and communities through this unprecedented cost-ofliving crisis.
“In this financial year, we’re providing an additional £116m of targeted non-domestic rates support to businesses in the retail, leisure and hospitality sectors. These businesses are receiving up to a 50% discount on their rates bills for the duration of 2022-23. This is on top of our permanent rates reliefs which are providing over £240m of support this year. The Finance Minister will publish the 2023-24 Draft Budget in December.
“Our Business Wales service provides a range of advice including specialist resource efficiency advisory support that covers all aspects from energy and waste to water efficiency measures. It also provides a Green Ambition resource to improve knowledge and understanding of resource efficiency and help take action to mitigate business impact on climate change.”