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The Southern Health and Social Care Trust’s finance director has described the organisations projected energy costs for this financial year as “astonishing and “extortionate”.

Speaking at a meeting of the Trust’s Board, the Trust’s director of finance, procurement and estates, Catherine Teggart, made members aware of the impact the cost of living crisis is having on the Trust and explained how energy costs are expected to jump by 104 per cent this year.

“We are seeing the impact of the cost of living increases across quite a few areas in particular in relation to materials through the estates work,” said Ms Teggart.

“We are also, like everyone, all organisations, reporting a huge increase in our energy costs. We have a projection for this particular year of a £10 million increase in our energy costs.

Craigavon Area Hospital. Picture: Google

“Last year we spent £9.7 million on energy so we are looking at a 104 per cent increase.

“The department [of Health] has recognised that and has provided us with additional funding for that but our concern is that figure will continue to rise, particularly over the winter months.”

When asked by a non-executive director if the costs would “just have to be absorbed” by the Trust, Ms Teggart reiterated that the department has provided an extra £10 million to meet these costs but said it was her view this is an issue for more than one department.

“This, I believe, is a department issue and the department of finance and department for the economy, jointly across all departments are looking at how funding is going to be allocated to meet these costs.

“A 104 per cent increase is astonishing but the department has provided us with the funding but that is where we are at this point, they are our best estimates but it could get worse.

“We are closely monitoring it but we will need to start looking at sustainability in terms of looking at savings we could make going forward.”

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She continued: “We do hedge our costs and do make the use of a hedging organisation where we are trying as much as we can to reduce down our energy bill.

“We have a programme in place to look at solar panel across our smaller buildings and we hope to role that out this year.

“But for an organisation of this size the usage we have in energy is extortionate this year.”

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