A third of care homes in England have considered closing due to rising energy bills

theguardian.com:

A third of care homes across England have considered closing during the last year due to “financially crippling” running costs, as concerns rise that gas suppliers are profiteering at the expense of small businesses.

The energy regulator, Ofgem, has admitted that some suppliers may be charging small companies rates which cannot be justified by falling gas market prices.

Care England, the largest representative body for care providers in England, warned the energy regulator that care home heating bills have soared by 500% in the last year because suppliers are charging rates which dwarf the current market price for gas.

Martin Green, the chief executive of Care England, said “there can be no justification for charging such horrendous and financially crippling rates”.

Ofgem’s chief executive, Jonathan Brearley, said in a letter to the chancellor, Jeremy Hunt, earlier this month that the regulator was “very concerned” about reports from consumer groups into the behaviour of suppliers.

Brearley said some suppliers appear to be charging businesses rates which cannot be justified by the market price for gas. They are also demanding significantly higher security deposits and hiking the standing charges for small business customers.

Brearley told the chancellor that the regulator does not always have the legal powers to intervene, but it was working with the industry to find “common-sense ways” to address the issues faced by small businesses.

The threat is particularly stark for the care home sector which many fear is sleepwalking into a crisis of rising costs, and typically faces a higher heating burden.

Care England told Ofgem last year that some care homes faced gas prices more than 12 times higher than wholesale market prices