Care Operators Facing 1,400% Increase in Energy Costs
Care home operators are facing huge energy price increases of up to 1,400% as they search for new deals to fix costs.
While the care sector is dealing with its largest-ever recruitment crisis, increasing energy costs are placing extra financial pressure on operators this winter.
Tony Stein, CEO of Healthcare Management Solutions, has been talking to BBC Radio Sussex about rising energy costs and the effects this has on care providers.
Quoting a recent renegotiation of energy costs for one of the HCMS-managed care brands, Tony explained how one of the off-contract rates soared by 1,400% while searching for a better deal.
He went on to tell BBC Sussex that the best available deals delivered a 537% increase in electricity costs and a 900% increase in gas costs.
A Very Big Pill to Swallow
Tony said: “If your gas bill for the year has gone from £49,000 to £487,000 and electricity from £300,000 to £1.9 million, that is a very big pill to swallow. For a lot of operators, as has been said, this will be the end.”
While the government has stepped in to cap costs until March, Tony explained how businesses need more certainty to plan for the year ahead.
You can listen to the full interview from BBC Radio Sussex below.