More than 500 pubs, restaurants and hotels in England are being offered access to a government-backed energy saving tool aimed at cutting energy costs in the hospitality sector. The rollout follows a trial showing that businesses could reduce bills by an average of nearly £2,500 per year.

The initiative, led by the Department for Energy Security and Net Zero, targets small and medium-sized operators facing sustained pressure from high energy bills in hospitality.

The tool focuses on reducing energy waste through operational changes rather than new equipment investment.

How the energy saving tool works

The digital platform provides businesses with tailored insights into their energy usage, identifying where electricity is being consumed unnecessarily.

It tracks equipment such as refrigeration, kitchen appliances, lighting and ventilation systems, which are among the largest contributors to energy costs in pubs and hotels.

Users receive alerts and recommendations to reduce consumption, particularly during non-operating hours. The system highlights avoidable overnight usage, helping operators adjust routines without affecting service.

This approach reflects wider demand for energy management tools that are simple to deploy and do not require upfront capital spending.

Trial results highlight cost savings

A 12-month pilot involving 90 hospitality businesses recorded consistent reductions in both energy use and operating costs. Average savings reached close to £2,500 per site annually.

Some venues achieved larger reductions by focusing on off-peak consumption. In certain cases, energy use during closed hours dropped by up to 66%, demonstrating the impact of small operational changes.

Site-level results varied. One pub reduced overall energy consumption by around a quarter, delivering weekly savings, while smaller venues reported annual reductions of over £1,500.

These findings support broader industry efforts to improve energy efficiency in hospitality, where margins remain tight.

Pressure on hospitality energy costs

The scheme is being introduced as UK hospitality businesses continue to face volatile energy prices and rising operating costs. Energy remains one of the largest overheads for pubs, restaurants and hotels, particularly for smaller operators without long-term supply contracts.

Earlier government trials indicated the sector could collectively save millions of pounds through energy efficiency measures, alongside reductions in carbon emissions.

The current programme aims to scale those results, offering practical support that businesses can apply immediately.

Applications are open for eligible operators seeking to reduce energy costs in pubs and hotels while improving day-to-day efficiency.