Get to know the average hospital electric bill in the UK, and the top tips to help these healthcare institutions reduce their energy usage and save more money.
While the typical UK household consumes around 2,700 kWh of electricity annually (according to Ofgem’s statistics for households of 2-3 people), hospitals have a vastly different energy landscape. Operating 24/7 with complex medical equipment, stringent environmental controls, and a constant flow of patients and staff, hospitals consume electricity at a much higher scale than residential use.
Understanding the factors affecting energy bills helps hospital administrators better calculate and control costs. This article provides the average hospital electric bill and practical tips for reducing energy expenses without compromising patient care, with insights from an energy advisory service.
What is The Average Hospital Electric Bill in the UK?
The average hospital electric bill in 2021 was £279,895. The 2022 energy crisis and increased demand caused a 54% rise, with the average bill reaching £431,143.
Hospitals’ electricity consumption is exceptionally high, averaging 2,146,431 kWh annually. For perspective, hospitals consumed 354,600 kWh more than large shops, the next highest category of energy users.
The main components of hospital electricity use include:
- Cooling and Lighting: Hospitals use 6% of their energy for cooling and lighting, similar to other buildings. Outpatient hospitals consume much less energy than inpatient buildings but spend most of their money on HVAC systems and lighting, about 70%, often requiring a specialised business gas service.
- Ventilation Standards: Hospitals use 15% of their energy on ventilation, not much higher than general commercial buildings (11%). However, with an average energy intensity almost three times higher than general commercial buildings, the exact number is much higher.
- Cooking and Water Heating: Hospitals spend 17% of their total energy on water heating and cooking, compared to just 4% in outpatient facilities.
Understanding your hospital’s energy costs is crucial, as the average hospital electric bill can be substantial; here’s a breakdown of energy bills explained to help you manage these expenses effectively.
How is The Electricity Bill Calculated?
The following charges determine the average monthly electric bill for a hospital or other properties:
- Energy usage: The total amount of energy used in a period, usually a month for most commercial suppliers, which can be better managed through a reliable business electric service.
- Unit rates: The electricity price per kilowatt hour (pence/kWh). This unit price varies by area and tariff. In some regions, the unit rate is higher for the first tranche of units used and lower after a certain threshold.
- Standing charges: Your suppliers charge to allow your property to connect to the electricity network and to serve your account. Standing charges are fixed and not affected by the energy amount you use. However, they can vary depending on your tariff, location, payment methods, and contract signing time. It’s essential to compare gas and energy suppliers to find the best rates.
- Climate change levy: The Climate Change Levy (CCL) is an environmental tax on business energy use, encouraging businesses to save energy. Businesses with a Climate Change Agreement can receive a 90% lower CCL rate on their electricity bills and 65% less on other fuels, as part of a comprehensive energy risk management strategy.
- VAT: The standard VAT rate on electricity is 20%, which is directly added to your bills.
- Discounts: Your electricity supplier might offer discounts to attract your custom and encourage their preferred payment method. For example, you can get a discount for paying by direct debit (to avoid missed payments) or managing your account online (to reduce administration costs).
Managing energy costs is a major concern for businesses, especially in sectors like healthcare, where the average hospital electric bill can be substantial. For organisations looking for business help with energy bills, exploring cost-saving measures and tailored solutions is essential. High energy costs can put pressure on budgets, affecting overall financial health. By understanding the factors contributing to these bills and implementing strategic changes, businesses can significantly reduce their energy expenses. Options such as energy audits, switching to more efficient equipment, and renegotiating contracts can all play a role in cutting costs, making energy management a crucial aspect of operational efficiency.
What Factors Increase The Average Hospital Electric Bill
Identifying the main factors contributing to your increased average hospital electric bill helps you find the right solutions to reduce costs.
- Ventilation standards: Hospitals need strict air quality control to prevent the spread of airborne pathogens. This requires powerful HVAC systems that run continuously. Frequent air changes and maintaining specific temperature and humidity levels further increase energy consumption.
- Cooking and water heating: Hospitals prepare large-scale food for patients, staff, and visitors, requiring substantial energy for cooking appliances and refrigeration. Additionally, hospitals need a constant supply of hot water for sterilisation, laundry, and patient care.
- Client influence on energy use: Patients and visitors often control individual room temperatures, lighting, and electronic devices. This can lead to inefficient energy use, such as running heating and cooling systems simultaneously.
- Dynamics across climates: In hot regions, cooling demands spike during summer, while cold areas require more energy for heating in winter. These seasonal fluctuations can significantly impact overall electricity consumption and costs throughout the year.
5 Tips to Reduce Electricity Bill for Healthcare Sector
Here are top strategies and practices to help healthcare buildings lower their electricity bills:
- Understand your energy costs: Before taking any action to save energy, you need to understand your usage as much as possible. The bill consists of two main factors: energy costs and non-energy costs, which relate to how and when you use energy and how your staff is educated to use it effectively.
- Review your heating: Heating is a good place to start as it accounts for around 60% of the total energy a hospital uses. Make sure it performs well to avoid wasting more energy or turning it up in unused areas.
- Check the lighting system: 35% of a hospital’s electricity costs go to lighting. Switching off unused lights and addressing faulty or inadequate lighting can significantly reduce costs.
- Check appliances regularly: Faulty appliances can lead to significant energy waste. Investing in repairing or replacing these items will save you energy and money in the long term.
- Raise the awareness of staff and patients: While educating your staff, ask them where they think energy is wasted and suggest appropriate solutions. Without the cooperation of your staff, who directly use the energy, your energy-saving initiatives might face challenges.
Optimise Hospital Electricity Bill with Light Up Energy
Light Up Energy offers a comprehensive solution to help hospitals reduce their electricity bills. Through our expertise in energy management, we conduct thorough site audits, analyse consumption data, and provide strategic support to identify areas for improvement, making us an excellent energy consulting business.
Our team helps hospitals negotiate better rates with suppliers, leveraging our extensive network to secure optimal deals. We also offer tailored guides on energy-saving practices specific to healthcare facilities. By entrusting your energy management to Light Up Energy, you can focus on patient care while we work to minimise your average hospital electric bill.
In today’s climate of rising energy prices, our services are particularly valuable for hospitals looking to optimise operational expenses without compromising care quality. Contact us today to benefit from our contract energy management expertise!
FAQs
1. What is the updated electricity energy price cap?
The updated electricity energy price cap from April to July dropped lower than previously, to 60.10p per day (daily standing charge) and 24.50p per kWh.
The Office of Gas and Electricity Markets (OFGEM) sets the electricity energy cap to limit the price that all electricity suppliers can charge consumers. It covers both daily standing charges and electricity unit rates and is adjusted every three months.
2. What consumes the most electricity in hospitals?
EIA data shows that hospitals use the most electricity for ventilation, cooling, and lighting.
- Cooling & Ventilation: 40% of the hospital’s electricity usage
- Lighting: 16% of the hospital’s electricity usage
- Computing & Office: 14% of the hospital’s electricity usage
- Refrigeration: 6% of the hospital’s electricity usage
3. How much electricity does a healthcare facility use?
The Commercial Buildings Energy Consumption Survey (CBECS) has recorded a typical healthcare facility uses as below:
- Inpatient Health Care Facilities / Hospitals on average 247,000 square feet use 31 kWh per square foot
- Outpatient Health Care Facilities on average 12,100 square feet use 18.7 kWh per square foot
- Clinics or Other Outpatient Healthcare on average 14,600 square feet use 19.8 kWh per square foot
- Diagnostic Outpatient Facilities on average 8,500 square feet use 16 kWh per square foot
- Medical Office Buildings (without diagnostic equipment) on average 6,000 square feet use 14.3 kWh per square foot
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