Business Electricity for Aged Care Facilities
An aged care facility is never empty and never switched off. Electricity runs around the clock for heating and cooling, hot water, laundry, kitchen and lighting, so the bill is shaped by baseload and by the morning and evening routines rather than by a conventional working day.
Why the load never switches off
Residents are on site overnight, so the building keeps working: heating and cooling, ventilation, hot water, lighting in communal areas and corridors, lifts, nurse call, security and kitchen equipment. Some of that load is small individually, but it runs for every hour of the year, which is what makes the baseload visible on the bill.
The practical consequence is that an aged care site cannot be treated like an office that empties at six. Comparisons based on a nine-to-five profile will understate consumption and miss the overnight and early-morning hours that a facility actually pays for.
What drives the bill
Heating, cooling and ventilation are usually the largest single component, followed by hot water and laundry. Kitchen equipment, lifts and lighting add load, and electric resistance heating for either space or water can be a significant cost compared with a heat pump serving the same duty.
Consumption is seasonal and occupancy-sensitive, but less variable than in many businesses because the building never stops. A site with stable occupancy can still see a bill move with weather, and a site that adds beds or extends its hours changes its load profile rather than simply adding a percentage.
Demand and the daily routine
Morning is the busiest electrical period in many facilities: heating or cooling recovers after the night, hot water is drawn for showers and cleaning, laundry starts, and the kitchen prepares meals. Evening brings another cluster as lighting, cooking and heating overlap. The interval in which those overlap most can set the demand charge for the month.
Some of that overlap is avoidable without touching resident comfort — staggering laundry, sequencing kitchen equipment, or making sure heating and cooling are not running against each other. Some of it is not, because resident comfort and safety come first. Knowing which is which is what makes the comparison useful.
Where the waste usually hides
Simultaneous heating and cooling is a common finding in facilities with mixed systems and additions made over time, as are hot water systems held at a higher temperature than the duty requires and laundry schedules that fall inside the most expensive window.
Plant maintenance matters as much as controls: dirty filters and coils, failed dampers, and equipment left running in unoccupied wings all add consumption without adding comfort. Legacy lighting in corridors and communal areas is usually a straightforward fix, and it reduces both energy and demand.
What to check on the bill
Start with the network tariff code and the demand charge, then the peak and off-peak windows that apply to the site. Check whether hot water, laundry or kitchen are submetered; if they are, the bill will show how much of the total each accounts for, which is useful before deciding where to act.
Groups should also check whether each facility is on the same tariff basis. Sites acquired or built at different times often sit on different network tariffs, and comparing them as though they were identical hides the difference.
Comparing across a group
For a group, normalise consumption per bed, per occupied bed or per square metre before comparing facilities. Climate, building age and the mix of services (independent living, residential care, memory support) all change the load, so a raw total says little on its own.
Retail contracts across a group often end on different dates. A per-site bill lets each facility be compared on its own usage while still allowing the group to plan a coordinated renewal, rather than rolling every site onto whichever contract happens to expire first.
What not to trade away
Resident comfort, life-safety systems and continuity of supply sit outside the retail contract and should not be treated as levers for a lower rate. Load-shifting that risks overheating a wing in extreme weather, or interrupting kitchen and laundry schedules that support care, is not a saving.
The retail contract is what a comparison can improve. The plant, the controls and the building envelope are what an energy specialist can improve. Both affect the bill, and a facility should be clear about which one it is changing.
Frequently asked questions
Why is the bill high even when occupancy is stable?
Because the building runs continuously. Baseload, heating and cooling, hot water and laundry consume overnight and at weekends too, and demand charges reflect the busiest interval rather than average occupancy.
Can a group compare several facilities?
Yes, one bill per site. Each facility is compared on its own usage and network tariff, and sites can be benchmarked per bed or per square metre before a group-wide decision is made.
Is hot water a large part of the bill?
It can be, particularly where water is heated by electric resistance. A heat pump or a review of storage temperature and laundry scheduling can change the load profile, which is worth doing before a contract is compared.
Will changing retailer fix a high bill?
Not on its own. Retail rates are one part of the bill; demand, the tariff shape and the building's consumption are the others. A comparison improves the retail part, and it is most useful after the site's actual usage is understood.
Put it into practice
Upload an electricity bill to compare plans on the site's actual usage, or read the business electricity guides for the mechanics behind the bill.
Related guides
- Time-of-Use, Flat and Demand Tariffs Explained
- How to Read a Business Electricity Bill
- Switching Business Electricity Retailer
Other industries
All industries. This page describes how electricity is used and billed in this industry. It does not quote prices or promise savings.
