Outside, it’s a chilly February day in Kent—not the best for growing tomatoes and peppers. Inside the large greenhouses of Thanet Earth, however, conditions are just right. They keep the temperature at a cozy 20°C, which is perfect for their pepper plants.
But maintaining this ideal climate comes at a cost. Starting on April 1, their electricity standing charges will spike. Rob James, technical director at Thanet Earth, warns, “It’s a ticking timebomb.” This increase could add around £900,000 to their energy bill each year. By 2028, this could rise to £1.6 million, about 5% more for tomato production.
“These charges hit our profits hard,” says Rob. Growers fear these costs will push consumers to pay more at the grocery store. It’s another hurdle for an industry already struggling with labor shortages and post-Brexit changes.
During the peak season, Thanet Earth plans to harvest 750,000 small peppers weekly. The greenhouses, lit by pink LED lights, are an impressive sight. This facility, the largest in the UK, has been growing since 2008 and provides many of the tomatoes sold in major supermarkets.
The entire protected horticulture sector is in trouble. Many growers can’t handle a 60% increase in costs. They might have to raise prices or stop producing, which could contribute to rising food prices overall.
Standing charges are a daily fee everyone pays to access the UK’s gas and electricity network, regardless of usage. These charges are set to rise to fund grid upgrades and the shift to low-carbon energy. Yet, growers feel unfairly treated—while energy-intensive industries like steel get support, food producers do not.
The British Tomato Growers’ Association (BTGA) and the Cucumber and Pepper Growers’ Association (CPGA) argue that the current system, categorizing businesses by their economic activities, leaves growers without the help they need. Despite their energy-intensive operations, they’re classified differently.
Simon Conway, chair of the BTGA, emphasizes the pressing nature of the situation. “These costs will push up food prices,” he says. He notes that for individual businesses, every pound counts. With rising costs and falling wholesale prices, the farming community faces daunting challenges.
At the annual National Farmers’ Union meeting, Treasury officials will hear these concerns. British retailers often rely on imports during winter, especially from countries like Spain and Morocco. Recent storms there have devastated crop yields, highlighting the fragility of food supply chains.
Even amid rising costs, Thanet Earth aims to expand, having recently invested £25 million in a new greenhouse. But fears of higher utility costs make them reconsider future plans.
Notably, Thanet Earth generates its own energy. It burns gas and uses the by-products for growing. The vast majority of this electricity is sent back to the grid, enough to power about 35,000 homes.
Ultimately, as these costs climb, the government recognizes the importance of fruit and vegetable growers. A spokesperson mentioned their commitment to supporting the horticulture sector to drive economic growth.
Nonetheless, many in the industry believe that action has been too slow. The energy landscape remains uncertain, especially as they advocate for a more inclusive approach to energy support.
In Kent and beyond, growers are hoping for relief and a chance to thrive in a challenging environment.
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