Outside, it’s an overcast and blustery February day in Kent – hardly the ideal conditions for growing tomatoes, cucumbers and peppers. Yet inside the enormous glasshouses run by grower Thanet Earth, the climate has been optimised to a humid 20C, perfect for the regimented rows of small pepper plants poking out of raised trays.
Growing fresh produce indoors in the south of England year-round requires plenty of energy to provide light, warmth and carbon dioxide. But the site’s energy bills are about to grow too, when a significant increase in electricity standing charges comes into force on 1 April.
“It’s a ticking timebomb,” says Rob James, the technical director at Thanet Earth, which supplies most of the UK’s large supermarket chains. The company estimates the rise in standing charges will add £900,000 a year to its existing energy bill, equivalent to a 5% increase in total tomato production costs. Future increases to standing charges will see this rise to £1.6m in additional annual energy costs by 2028.
“These big charges really impact our profitability, our ability to compete and our ability to reinvest,” he adds.
Growers are warning they will be forced to pass on the sharp jump in costs, which will ultimately be felt by consum
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