Schools

Don’t let your energy contracts expire, DfE warns schools

Buying energy out of contract will be 'more expensive', leaders told

Buying energy out of contract will be 'more expensive', leaders told

Schools should not allow their existing energy contracts to expire, as buying out of contract will be “more expensive”, the Department for Education has said.

Schools Week first revealed how school leaders were budgeting tens of thousands of pounds to cover soaring energy electricity and gas costs, which are set to rise by 50 per cent.

But the DfE claimed in February that rising bills would have a “relatively small impact” on school budgets, and said they could shoulder “cost pressures” from recent rises in core funding.

Chancellor Rishi Sunak’s spring statement on Wednesday also included no extra money for schools to pay rising bills, prompting warnings of a “return of austerity”.

But the DfE has now written to heads, advising them not to “allow their existing contracts to expire”.

Schools should instead “contact their current suppler to discuss a contract extension, as buying energy out of contract is more expensive than buying at market rate”, the DfE said.

The email said the energy market “remains volatile and prices remain high”, having the potential to “impact on all sectors, including education”.

It follows pressure on the government to provide more guidance for schools on how to cope with rising costs.

School switch service closes next week

It also comes as the government prepares to close its school switch service.

Run by the Crown Commercial Service, the scheme allows schools and academies to obtain bespoke supply quotes. Despite the ongoing issues with rising costs, the service will close on March 31.

The DfE said its approved energy framework suppliers were still available to provide renewal quotes for schools. They also said schools could use their free “get help buying for schools” procurement team.

Labour warned in October that schools faced energy price hikes of up to £80 million a year due to the price surges.

Stuart Guest, headteacher of Colebourne Primary School in Birmingham, said his school’s bills had gone up by £56,000 for next year, taking the total bill to £121,000.

The school only took out a one year contract this month in the hope prices will eventually drop.

Last month, he called for DfE to “at least talk to schools” about the matter, as for some it could equate to the cost of several new teaching assistants or a teacher, or even force schools to make redundancies.

Schools are also facing a moral dilemma over energy contracts with Russian-firm Gazprom. Schools Week revealed how some academy trusts were seeking urgent legal advice on whether they can cut ties.

Latest education roles from

Chief Financial Officer – Lighthouse Learning Trust

Chief Financial Officer – Lighthouse Learning Trust

FEA

Chief Financial and Operations Officer

Chief Financial and Operations Officer

Tenax Schools Trust

Managers (FE)

Managers (FE)

Click

Executive Director of Finance – Moulton College

Executive Director of Finance – Moulton College

FEA

Sponsored posts

Sponsored post

IncludEd Conference: Get Inclusion Ready

As we all clamber to make sense of the new Ofsted framework, it can be hard to know where...

SWAdvertorial
Sponsored post

Helping every learner use AI responsibly

AI didn’t wait to be invited into the classroom. It burst in mid-lesson. Across UK schools, pupils are already...

SWAdvertorial
Sponsored post

Retire Early, Live Fully: What Teachers Need to Consider First

Specialist Financial Adviser, William Adams, from Wesleyan Financial Services discusses what teachers should be considering when it comes to...

SWAdvertorial
Sponsored post

AI Safety: From DfE Guidance to Classroom Confidence

Darren Coxon, edtech consultant and AI education specialist, working with The National College, explores the DfE’s expectations for AI...

SWAdvertorial

More from this theme

Schools

Appoint staff contact for uniform issues, schools told

New guidance also suggests rules banning 'visible logos' on PE kit to reduce 'pressure to wear designer gear'

Jack Dyson
Schools

Reform council’s school transport cut call ‘Victorian’, says Phillipson

Phillipson rejects call to extend the distance children can be expected to make their own way to school

Lydia Chantler-Hicks
Schools

School uniform: New rules to meet Labour’s cap revealed

Government guidance tells schools to confirm changes ASAP, consider legal advice and lets parents complain to government

Jack Dyson
Schools

AI could analyse lessons delivered by new teachers under NIOT pilot

Artificial intelligence could be used to analyse recordings of lessons by early career teachers under a new trial being...

Lydia Chantler-Hicks

Your thoughts

Leave a Reply

Your email address will not be published. Required fields are marked *