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25 Feb 2022

Energy crisis could send NHS bill soaring past £1 billion

Energy crisis could send NHS bill soaring past £1 billion

Zenergi has recently provided its expertise in Healthcare Business magazine, in response to the current energy crisis and its impact on the NHS. 

Research conducted by Zenergi’s Energy Management division in 2019 estimated the energy costs of the UK’s NHS Trusts to be around £500m.

Taking hospitals in England into consideration alone, that figure is now estimated to have more than doubled when today’s sky-high energy prices are applied to the last set of figures published by NHS Digital.

The NHS Estates Return Information Collection (ERIC) 2020/21 reveals the true extent of hospital operating costs, with energy accounting for a large percentage of the overall spend.

In the period from 1 April 2020 to 31 March 2021, over £630 million was spent on gas and electricity.

Since the end of March 2021, wholesale gas prices have more than doubled (240%) and electricity has gone up by an equally staggering 184%.

Those soaring energy costs will only add to the pressure the NHS is under in the current COVID-19 pandemic but, unfortunately, there is still no end in sight to the rising prices.

Assuming energy consumption has remained consistent since April, based on today’s prices overall energy costs could rocket to £1.2 billion when the next ERIC report is published.

Since many hospitals are based on different sites, there may be multiple energy supplier contracts involved with different start and end dates, making the task of keeping track of energy costs problematic as a result.

Compounding the issue, the NHS estate is made up of a mix of state-of-the-art modern facilities and Victorian hospitals that are no longer fit for purpose. When these old buildings were originally constructed, energy efficiency was not a major consideration. The legacy of antiquated buildings and infrastructure is significantly impacting energy efficiency, limiting opportunities for energy saving.

Despite this, the challenges can be overcome, the key is developing a plan that works for each individual organisation.

 

Developing the Green Plan

The NHS’s Greener NHS National Programme identified that climate change will disrupt care, with poor environmental health contributing to major diseases, including cardiac problems, asthma and cancer unless urgent action to reduce carbon emissions is taken.

For many facilities, development of comprehensive Green Plans that incorporate emissions from buildings (fossil fuels, electricity) and transport, as well as capturing other environmental impacts, including waste, procurement, medical gases, patient and staff travel and biodiversity, is going to be critical to keeping on track with the NHS’s ambitious 2040 Net Zero targets.

But where do you start to transform your estate?

An energy audit will identify where buildings are using the most energy and identify low cost and no cost energy saving measures that can be incorporated into a strategic roadmap.

Quick win opportunities that can offer significant returns on investment can include upgrading to LED lighting; and work on building management systems for heating, ventilation and air conditioning systems.

But maximising opportunities to fund energy and carbon saving initiatives through funding streams, such as the Public Sector Decarbonisation Scheme, will accelerate progress. Facilities will need to ensure their Green Plans include comprehensive Heat Decarbonisation Plans to enable them to act quickly when funding is released.

 

Energy efficiency in action

Heating decentralisation cuts carbon emissions by more than 30%

A technical feasibility study and financial appraisal assessed the practical options and energy saving potential from decentralising the outdated steam boiler plant, distribution and condense return systems at Brighton General Hospital.

The programme involved replacing large inefficient central steam boiler plant and distribution systems with high efficiency independent local condensing boilers and a fully automated building management control system to provide centralised heating control across the site. The domestic hot water calorifier systems were also replaced by a mix of high efficiency plate heat exchangers and point of use water heaters, significantly reducing secondary circulation losses.

The project delivered:

Annual cost savings of approximately £130,000

Annual CO2 savings of approximately 1,000tCO2e

Award-winning purpose-built medical facility minimises long-term carbon emissions and operational costs.

Developed for the NHS in Leicester, Victoria Park Medical Centre is a purpose-built medical facility that provides a diverse range of specialist accommodation for staff and patients. Development included many low carbon technologies, including low energy lighting, air source heat pumps serving low energy underfloor heating, natural ventilation, advanced BMS controls and a sedum roof.

The development successfully combines modern high quality, flexible specialist medical facilities including treatment rooms, consulting rooms, clean/dirty utility rooms, pharmacy, canteen and shower facilities, with high tech building services design that minimises long-term carbon emissions and operational costs.

The project achieved a BREEAM Excellent rating through the integration of many cost-effective, practical low carbon technologies. The result is a flexible building that has minimised long-term energy consumption and carbon emissions, while ensuring low running costs throughout its lifetime.

NHS PR Screenshot

View the publication in the Health Business magazine – business information for healthcare professionals. 

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