A new overview from the Ministry of Health shows that healthcare companies must expect to spend NOK 688 million on electricity next year. The sum does not include electricity tax and VAT. In addition, there is online rent, which is estimated at NOK 245 million. The ministry maintains that “the last few months show that big changes can happen quickly” and that “estimates can change a lot”. NOK 688 million is more than double the corresponding cost in 2021 (NOK 325 million). The bill for 2022 is not entirely clear, but the estimate is NOK 420 million. By way of comparison, the health sector spent NOK 647.7 million on temporary staff in 2021. Health Minister Ingvild Kjerkol (Ap) says the health sector must expect to spend NOK 688 million on electricity next year. The sum does not include electricity tax, internet rent and VAT. Photo: Even Bjøringsøy Johnsen / news Hospitals reduce the temperature Oslo University Hospital (OUS) announced in autumn that they will reduce the temperature throughout the heating season to save “between NOK 15 and 20 million” in electricity costs. FRP’s health policy spokesperson, Bård Hoksrud, tells news that he is “scared by the cost development and the pending bill”. – Now hospitals have to use money that should have actually gone to patient treatment and investments in electricity. Here, it is important to have solutions that ensure that no patients are affected, he says. Head of the Storting’s health and care committee, Tone Wilhelmsen Trøen (H), says she is “very concerned that this could affect patients and result in longer healthcare queues”. She shows that the health budget for 2023 does not take account of increased wage and price growth. – Electricity costs are now putting further pressure on the economy. We expect the government to come up with compensatory measures, at the latest in the revised national budget, she says. – For our part, most of the electricity consumption in 2023 is price guaranteed. This means that high electricity prices will have little to say for our healthcare companies next year, says Kai Kristiansen, who is communications advisor at Helse Midt-Noreg RHF. Photo: Gorm Kallestad / NTB – It’s good that large parts of the electricity volume are price guaranteed. For 2023, 85 per cent of the recorded electricity use for hospitals is price guaranteed. The aim of price hedging is to convert fluctuations in the market into predictable expenses. Price protection meant that Helse Sør-East saved NOK 208 million in electricity costs in 2021 (at a net price of approximately NOK 30/kWh). Ellen Rønning-Arnesen (Ap) is State Secretary in the Ministry of Health and Care. – It is good that the regional healthcare companies have large parts of the current volume in price-secure agreements. At the same time, high electricity prices and high prices for district heating will have consequences for hospitals, she says. In November, hospitals received an extra NOK 2.5 billion in a “renewal” to compensate for increased electricity costs (see fact box). This is how the billions are distributed to the four healthcare companies Helse søraust: NOK 1,348 million. Helse Vest: NOK 477 million. Health Central Norway: NOK 358 million. Helse Nord: NOK 317 million. The Ministry of Hospital Economics: All the regional healthcare companies now have a negative economic development and a much weaker result this year than was expected at the start of 2022. This is largely due to the strong and unexpected price increase. In addition, operations in hospitals have also been affected by the pandemic this year. The proposal for additional licensing in 2022 will improve this situation. The increased price growth has not been compensated for in the 2023 budget, and will affect hospital finances in 2023 as well. In order to maintain financial control, it will be necessary for the regional healthcare companies to consider adjustment measures. The regional healthcare companies are now also to a very small extent preparing for decisions to initiate new major investment projects. Source: Ministry of Health and Care – The strong price increase means that hospital finances are also tight. The budget has now been adopted by the Storting, but we must keep a close eye on the financial situation and electricity costs in hospitals, says Rønning-Arnesen. The hospital agreements on district heating are mainly linked to the spot price for electricity and are not subject to price hedging. This cost is calculated at NOK 656 million next year. Head of the Storting’s health and care committee, Tone Wilhelmsen Trøen (H), says she is “very concerned that increased electricity costs could affect patients and result in longer healthcare queues”. Photo: Stian Lysberg Solum / NTB – Hospitals will have a very tough time in 2023 – I fear cuts in patient treatment and dismissals with the budget that has been adopted, says Kjell Ingolf Ropstad (KrF). He points out that they increased the budget for hospitals by 2 billion in their alternative budget. – The hospitals that have fixed price agreements that expire will have a very tough time in 2023, and the government cannot just watch. It makes no sense to have large revenues for the state from expensive electricity at the same time as hospitals have to cut costs because of the same expensive electricity, he says. Leader of the Norwegian Nurses Association, Lill Sverresdatter Larsen, tells news that she “expects that the politicians in this situation take responsibility for patients getting the treatment they need”. – And that hospitals can make absolutely necessary investments. It is about maintaining good health preparedness.
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Hospitals will have gigantic electricity bills in 2023 – news Vestland
