NHS Ayrshire are prepared for huge hike in their energy bills
NHS Ayrshire and Arran says it will keep its energy bills to a manageable level this year amid spiralling inflation.
But it expects to face a challenge in the next financial year.
NHS finance director Derek Lindsay said that the organisation had increased its energy allocation to take account of expected rises when it agreed its budget for 2022/23 earlier this year.
This saw the health service increase its budget for energy by around £2.5m – around 50 per cent up on the previous year.
This increase compares to some hospital trusts in England and Wales paying more than 200 percent more for their energy.
Mr Lindsay was responding to a question asked by Ayrshire and Arran Health Board member Sheila Cowan at a meeting of the board on Monday morning.
After a report which made reference to the potential risk around the financial impact of any future pay settlement, she asked why there was no information on the risk surrounding inflation, particularly energy costs which were ‘going through the roof’.
Mr Lindsay said: “In relation to energy, had set a budget for about a £2.5m increase. I think it was around £5m or £6m before.
“It’s an increase by almost 50 per cent.
“We are confident that we will live with it. The reason is there is a pan Scotland public procurement exercise which purchases in advance the energy for the public sector, so effectively we have pretty much paid for this year’s energy.
“We do expect to see another cost price factor in setting next year’s budget.
“We are hedged against the costs this year.
“That is the biggest inflationary issue.”