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Energy costs remain one of the biggest operational pressures for care providers. While markets continue to fluctuate due to global events, there are practical steps care homes can take now to reduce costs and improve efficiency ahead of winter.
Taking action early can make a significant difference, particularly as energy markets begin to shift towards higher winter demand pricing.
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If your energy contract is due within the next 12 months, timing is critical.
The period between now and mid-summer often presents a window of opportunity. This is because energy traders typically begin pricing in increased winter demand from mid-summer onwards.
With ongoing supply disruption linked to global conflict, there is a risk that markets could react more sharply than earlier in the year, potentially mirroring trends seen during the 2022 energy crisis, although likely not to the same extreme level.
Locking in at the right time can help protect your organisation from future price increases.
For care homes on half hourly electricity supplies, it is important to review your agreed capacity.
You can identify this by checking your MPAN number, where a “00” on the top line indicates a half hourly supply.
If your agreed capacity (kVA) is higher than your actual usage peak demand, you may be paying more than necessary. Reducing this where appropriate can lower costs, particularly as Transmission Network Use of System (TNUoS) charges have increased significantly.
It is important to check this prior to signing a renewal otherwise you will lock in the potentially higher charge for the period of the contract, regardless of when the change occurs, and have to wait again for when the next renewal is due to obtain the lower costs.
These charges are partly based on capacity levels and charging bands via the network operators, making this a key area for potential savings.
Many care providers are unaware that they may be eligible for reduced VAT and exemptions.
Care homes can benefit from:
One of the most common challenges for care providers is knowing when to renew.
Fixing a contract at the wrong time can lead to higher costs over the full term.
By monitoring wholesale market movements day by day, it is possible to identify more favourable pricing windows. This approach allows organisations to avoid locking in at peak pricing and instead secure contracts when conditions are more advantageous.
Over time, this can deliver significant savings across multiple renewal cycles.
For care providers looking to improve sustainability, green energy is worth considering.
In many cases, securing 100% renewable electricity on renewal can be cost neutral compared to standard supply.
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This provides:
It is a straightforward way to align environmental objectives with operational decision making.
Energy markets remain unpredictable, but there are clear steps care providers can take to reduce costs and manage risk.
These include:
Taking action now can help avoid higher costs later in the year.
At Quality Care Group, we support care providers with energy procurement, market tracking and cost optimisation.
Our approach focuses on helping organisations make informed decisions, reduce costs and manage risk in a volatile market.
If your energy contract is due within the next 12 months, or you would like to explore potential savings, get in touch with our team today.