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Fears trusts could get handcuffed to government energy-buying scheme

Beleaguered academy trust bosses could face 'yet more bureaucracy', unions warn
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Beleaguered academy trust bosses could face “yet more bureaucracy” and the prospect of being handcuffed to long-term contracts through Labour’s flagship energy scheme, union chiefs fear.

Government officials will write into academy rules that trusts should join the “energy for schools” service – which they say could save schools tens of thousands of pounds – or provide a “good reason” for opting out.

But, once they sign up, trusts will have to give 30 months’ notice to leave for another energy provider.

Emma Harrison, of the ASCL leaders’ union, argued that this could “reduce the flexibility to switch to a more competitive contract as circumstances change” in the market.

“We appreciate the DfE is trying to do its best to support this and, where there are clearly savings to be made via the deals it has secured, that is obviously a good thing.

“However, we are concerned about trusts facing yet more bureaucracy to prove the deal they have already secured is better than the DfE scheme, and the prospect of being tied to 30-month notice periods.”

Hundreds sign up

More than 1,000 schools have so far joined the Department for Education scheme.

In a bid to shield customers from price volatility, the service purchases gas and electricity up to 30 months in advance.

Speaking at a Schools North East event last week, DfE official Brendan Murtagh said the 30-month notice period was required “because energy is purchased over a three-year period”.

An “expectation” for schools to sign up will “be written into the academy trust handbook”, he added.

“That does not mean it is mandated to sign up, but it does mean that you have to be able to show there is a good reason not to join. Local authority-maintained schools will have a bit more autonomy on that.”

Similar expectations will be set for the government’s new supply agency MIS framework. A slide shown during the talk said this would be done “by September”.

Primaries could, on average, cut gas and electricity bills by £4,900 a year, according to the DfE. The figure is £23,200 for secondaries.

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