MOSCOW (Pakistan Point News / Sputnik - 23rd March, 2023) UK charity representative organization Care England revealed that one third of adult social care providers had considered closing during 2022 due to unjustified rates by energy suppliers for small businesses, which prompted heating bills to soar by 500%, The Guardian reported on Thursday.
"1/3 considered exiting the market in 2022. Among the smaller providers (fewer than 250 employees), nearly half considered taking this action,' the Sector Pulse Check report, co-authored by Care England, stated.
UK energy regulator Ofgem admitted that some suppliers may have charged small companies excessive rates, which could be seen as profiteering on volatile market gas prices, the newspaper reported.
Care England, which represents charities providing care homes for vulnerable adults, reportedly told Ofgem last year that some of their members' facilities faced a 12-fold increase in gas prices, compared to wholesale market prices.
Care England chief Martin Green said that "there can be no justification for charging such horrendous and financially crippling rates."
In addition, Green said that the situation was aggravated by COVID-19 guidance, which required the facilities to ventilate indoor spaces.
"The underlying financial fragility of the sector and energy-intensive nature of services has meant providers are pushed further into what was already an incredibly precarious situation," the Care England chief added.
Many countries in the world have been facing a massive energy crisis and surging inflation as part of the post-pandemic global economic recession. The situation has further exacerbated against the backdrop of the Ukraine crisis, as the hostilities and Western sanctions against Russia have led to disruptions of supply chains and resulted in a spike in energy prices worldwide.
