The 'financially crippling' energy costs come at a time of crisis for the care sector, with a third of care providers saying they have considered shutting down in the last 12 months.
Ofgem is investigating breaches in its regulations by energy companies with adult social care providers especially affectedOfgem is investigating breaches of its regulations after social care providers reported energy cost increases as high as 500%.
The UK's energy regulator has found"evidence of significant concern" about energy pricing for non-domestic customers according to Care England., saying its investigation is focusing on four issues:• Significantly higher security deposits• Non-compliance with the energy bill relief scheme . In its letter to Mr Hunt, Ofgem said it was also concerned by issues it does not have legal powers to intervene on, including contracts signed last autumn that are now significantly more expensive than what current wholesale market conditions would deliver.The increases in energy costs come at a time of intense pressure for the sector
Ofgem's supply licence stipulates that energy companies must ensure that the terms of any deals for customers not on long-term contracts are"not unduly onerous". It comes at a time of crisis for the care sector, with a third of care providers saying they have considered shutting down in the last 12 months.
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