How important is energy cost in the aged care sector?

How important is energy cost in the aged care sector?

Aged care facilities use power 24 hours a day, 7 days a week. Running essential medical equipment, heating and cooling systems, laundries, and kitchens (to name just a few) means that energy costs are consistent and high. According to a report by the NSW Office of Environment & Heritage, this financial burden means many facilities are “operating in an environment of low financial returns”.

Aged care providers face additional challenges as health and safety costs increase in response to the Covid-19 health pandemic.

Whilst other sectors, such as manufacturing, can control electricity and gas consumption by modifying their operations or by load shedding, this is a luxury that’s not possible for aged care or healthcare providers where power demands are critical and non-negotiable.

High operational costs are hardly ideal when we consider Australia’s ageing population and the dire need for more residential care facilities. Researchfirm McCrindle estimates that by 2044, around 18,567 Australians will receive a letter from the Queen, and data from 2017 suggested that the need for residential care facilities will increase by 150% within 40 years.

However, aged care providers don’t need to settle for high energy costs. In fact, there are many ways to overcome the challenges because challenges and opportunities are often two sides of the same coin.

The power of energy productivity

Because energy costs in the aged care sector are consistent and high, there is plenty of opportunity for aged care facilities to bolster their energy productivity, secure better contracts for electricity and gas, and ultimately cut back on their costs significantly. Aged care providers are also well-positioned to take advantage of government grants and funding for energy efficiency and sustainability projects - taking advantage of these grants means providers can future-proof their energy spends.

SES has worked with aged care businesses since our inception. We have first-hand knowledge of just how important energy costs are in the sector, and we know how to mitigate skyrocketing energy spend as our we work with many of the largest Aged Care providers in Australia.

Want to know more?

A leading, multi-site care provider approached SES in 2017 when energy spend was adversely affecting their business. Click here to download this client story to learn how we were able to help.

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