Executive Summary

Last time, Care Circle Network explained how TNUoS charges jumped sharply from April 2026 — a fixed cost that can affect even care homes that have already worked hard to reduce consumption.

For many operators already managing workforce costs, insurance pressure, food inflation, estates maintenance and fee uplifts that often lag behind real costs, it felt like yet another unavoidable pressure on tight margins.

But one care home took a different approach. Instead of accepting the rise as part of the new energy cost environment, they asked for a full independent review — and uncovered £27,000 in recoverable overcharges.

The Abbeyfield Story: £27,000 Recovered

When Abbeyfield contacted Consultiv Utilities, the team was already feeling the pressure of rising energy and network costs.

Like many care providers, they had taken sensible steps to manage consumption. But the problem was not only how much energy the site was using. It was whether the bills, capacity banding and contract structure accurately reflected the way the site actually operated.

Following the review, Consultiv helped correct the overcharges, review the contract position and safely adjust the agreed supply capacity without compromising the site’s operational needs.

For a provider operating under intense cost pressure, that recovery is not just a financial adjustment. It is money that can be redirected into resident care, staffing, facilities and day-to-day service resilience.

Why These Savings Are Often Missed

Energy bills are not easy to read. For care providers, the headline unit rate is usually the first thing that gets attention. But many of the biggest risks and opportunities sit deeper inside the bill.

In a busy care environment, these details can easily go unchecked — especially when managers are already dealing with staffing, compliance, family communication, inspections and day-to-day operational pressure.

How CCL and VAT Relief Can Help

Beyond capacity and billing corrections, two other areas can make a meaningful difference for care homes: Climate Change Levy and VAT treatment.

Climate Change Levy, or CCL, is a tax added to many non-domestic electricity and gas bills. However, not every care setting should be charged in the same way.

Energy supplied for qualifying domestic use, including homes for the elderly and disabled, can be excluded from CCL where the correct criteria are met and the right declarations have been provided.

VAT relief is also important. Energy supplied for qualifying use may be eligible for the reduced 5% VAT rate rather than the standard 20% rate. Where contracts change, meters are reclassified, sites are added or supplier records are incomplete, VAT can sometimes be applied incorrectly.

Practical Lessons for Care Providers

• Do not assume your current capacity band is still right. Usage patterns change, buildings change and contracts change.
• Do not focus only on the unit rate. Fixed charges, pass-through costs, VAT, CCL and billing accuracy can all affect the true cost of energy.
• Do not assume historic bills were correct. Errors can sit unnoticed for months or years.
• Do not wait until renewal. Capacity, billing errors and reliefs can often be reviewed before a contract ends.
• Get the whole position checked. A proper review should look at the bill, contract, capacity, VAT, CCL and operational usage together.

From Cost Pressure to Margin Protection

With the right checks, rising energy costs can become an opportunity to protect — and even improve — margins.

That matters because energy is no longer a background overhead for care providers. It is now directly linked to financial resilience, operational planning and the ability to protect resources for care delivery.

For single-site providers, even modest savings can make a meaningful difference. For small groups and multi-site operators, the impact can multiply quickly across meters, contracts and locations.

Where Consultiv Utilities Can Help

As the featured energy expert in the Energy Reset series, Consultiv Utilities is offering Care Circle readers a no-obligation capacity review and bill health-check based on the same approach that helped identify the £27,000 recovery for Abbeyfield.

The review is designed to help care providers understand whether their current bills, capacity settings, VAT treatment, CCL position and contract structure accurately reflect how their service operates.

Next Week in the Energy Reset Series

Building a Smarter Energy Approach for 2026 — Fixed vs Flexible Contracts, Renewables and Real-Time Visibility.

Next week, we look at how care providers can move beyond reactive bill checking and start building a smarter, longer-term approach to energy management in 2026.