Cost Optimisation for Nursing Homes: Beyond Energy Efficiency
Nursing homes across the UK are facing unprecedented financial pressures.
With the National Living Wage increasing by 10% in April 2024 and local authority fee increases averaging just 9%, controlling costs has never been more critical.
Energy represents one of the largest non-staff expenses for nursing homes—but optimising these costs goes beyond simple efficiency measures.
The Three Pillars of Energy Cost Optimisation
True cost optimisation rests on three pillars:
- Consumption reduction (using less energy)
- Rate optimisation (paying less for the energy you use)
- Demand management (using energy at different times)
Most nursing homes focus only on the first pillar, missing significant savings opportunities.
Beyond Basic Efficiency
In our previous article, we covered efficiency measures like LED lighting, heating optimisation, and staff awareness.
These remain essential first steps—but they’re just the beginning.
The Hidden Power of Rate Optimisation
Even the most efficient nursing home can overpay for energy with the wrong contract.
Here’s what most energy brokers won’t tell you:
- Contract timing matters: Energy prices fluctuate constantly. Locking in rates at the right time can save 10-15% compared to standard renewal timing.
- Contract structure matters: The right combination of standing charges and unit rates for your specific usage pattern can save 5-8%.
- Supplier selection matters: Different suppliers offer different benefits for nursing homes, from consolidated billing for multi-site operations to specific care sector tariffs.
Demand Management: The Untapped Opportunity
When you use energy can be almost as important as how much you use.
Many nursing homes can reduce costs by shifting certain activities to different times:
- Laundry operations can often be scheduled during off-peak hours
- Dishwashing can be timed to avoid peak periods
- Battery storage systems can charge during cheaper rate periods and discharge during expensive periods
A nursing home in the Midlands reduced their electricity costs by 12% by implementing a demand management strategy—without reducing total consumption.
Multi-Site Opportunities
For nursing home groups with multiple facilities, additional opportunities exist:
- Consolidated procurement leverages total volume for better rates
- Standardised equipment and practices across sites
- Shared learning between facilities
One care group with six homes saved £42,000 annually by implementing a group-wide energy strategy.
The Water Opportunity
Water costs are often overlooked, yet they represent 5-8% of operational expenses for nursing homes.
Simple measures can deliver significant savings:
- Leak detection and repair (a single running toilet can waste £700 annually)
- Low-flow fixtures in appropriate areas
- Water-efficient laundry practices
A 38-bed nursing home reduced their water bill by 28% through these measures, with a payback period of just 7 months.
The Link Utility Consultants Approach
At Link Utility Consultants, we take a comprehensive approach to nursing home energy costs:
- Consumption analysis to identify efficiency opportunities
- Contract optimisation to secure the best rates
- Demand management strategies tailored to your operations
- Multi-utility approach covering electricity, gas, and water
- Ongoing monitoring to ensure sustained savings
Beyond Cost: The Compliance Angle
Energy cost optimisation also supports compliance with CQC requirements around financial sustainability and resource management.
Demonstrating effective cost control can positively impact your overall rating.
Ensuring Resident Comfort with Efficient Energy Use
For care homes, maintaining perfect comfort for residents while managing energy costs isn’t just a financial challenge—it’s central to quality of care.
The good news? With the right approach, you can enhance resident comfort while reducing energy costs.
Understanding Thermal Comfort
Thermal comfort is about more than just air temperature. It involves:
- Air temperature (what thermostats measure)
- Radiant temperature (heat radiating from surfaces)
- Air movement (drafts and ventilation)
- Humidity (moisture content in the air)
- Personal factors (clothing, activity level, individual preferences)
This explains why two residents in the same room can have different comfort experiences.
The Comfort-Efficiency Connection
The traditional approach treats comfort and efficiency as opposing goals—higher temperatures for comfort versus lower temperatures for savings.
This is a false dichotomy.
Modern approaches enhance both comfort and efficiency simultaneously through:
- Zoned heating that delivers appropriate temperatures to different areas
- Radiant heating that feels warmer at lower air temperatures
- Draft elimination that improves comfort without raising temperatures
- Humidity control that enhances perceived warmth
Practical Strategies for Care Homes
Here are proven approaches that enhance resident comfort while reducing energy use:
1. Personalised comfort zones
Different residents have different temperature preferences. Where possible, provide individual control in bedrooms and create zones in communal areas with slightly different temperatures.
One care home created “warm lounges” and “cool lounges” to accommodate different preferences, improving resident satisfaction while reducing overall heating costs.
2. Draft elimination
Drafts make residents feel cold even when air temperatures are adequate.
Simple measures like door closers, draft excluders, and sealing gaps can significantly improve comfort while reducing heating requirements.
3. Radiant comfort
Radiant heat (from surfaces rather than air) creates a more comfortable environment at lower air temperatures.
Consider:
- Low-temperature radiators with larger surface areas
- Underfloor heating in renovation projects
- Infrared heating panels in specific areas
4. Smart controls
Modern heating controls can maintain more consistent temperatures, eliminating the uncomfortable swings between too hot and too cold that occur with basic systems.
These systems typically reduce energy use by 15-20% while improving comfort.
5. Ventilation balance
Good air quality is essential, but uncontrolled ventilation wastes heat.
Heat recovery ventilation systems maintain air quality while recapturing 80-90% of the heat that would otherwise be lost.
Special Considerations for Dementia Care
Residents with dementia have specific comfort needs:
- Consistent temperatures are particularly important as residents may not communicate discomfort effectively
- Visual cues help residents understand heating controls
- Higher baseline temperatures may be necessary as perception of temperature can be altered
Energy-efficient approaches can still be applied, but with these considerations in mind.
The Role of Staff Awareness
Your care team plays a crucial role in balancing comfort and efficiency:
- Train staff to recognize signs of discomfort beyond verbal complaints
- Establish clear protocols for temperature adjustment
- Encourage non-energy solutions to comfort issues (appropriate clothing, blankets, activity levels)
One care home reduced energy use by 12% through staff training alone, while improving resident comfort scores.
Technology Solutions
Several technologies specifically address the comfort-efficiency balance:
- Thermal imaging can identify cold spots and heat loss areas
- Smart thermostats with remote sensors ensure even temperatures
- Occupancy-based controls adjust settings based on room usage
The Link Utility Consultants Approach
At Link Utility Consultants, we understand the unique needs of care homes:
- We conduct comprehensive comfort and efficiency assessments
- We develop tailored strategies that enhance both aspects
- We help secure the best energy contracts to reduce costs
- We provide ongoing support to maintain optimal conditions
Your Next Steps
Ready to enhance resident comfort while reducing energy costs?
- Book a free comfort and efficiency assessment
- Implement a phased approach to improvements
- Monitor both comfort metrics and energy consumption
- Adjust strategies based on resident feedback
Call Matt Oliver today on 07895 113519 or visit www.linkutility.co.uk to book your free care home comfort and efficiency review.
