Smart energy procurement: How schools can save money and boost financial sustainability

By David Bate, Energy Consultant 

In today’s educational landscape, schools face the dual challenge of providing high-quality education while managing tight budgets. One effective strategy to address this challenge is the implementation of energy procurement frameworks. These frameworks can significantly reduce energy costs and contribute to the financial stability of schools and multi-academy trusts.

Understanding energy procurement frameworks

Energy procurement frameworks are structured approaches that schools can use to purchase energy more efficiently. These frameworks involve negotiating contracts with energy suppliers to secure favourable rates and terms. By leveraging collective buying power, schools can often obtain better deals than they would individually.

Key benefits for schools

1. Cost savings: One of the most immediate benefits of energy procurement frameworks is the potential for substantial cost savings. By securing lower energy rates through bulk purchasing and long-term contracts, schools can reduce their utility expenses significantly.
2. Budget predictability: Energy procurement frameworks often include fixed-rate contracts, which provide schools with predictable energy costs over a specified period. This predictability helps in accurate budgeting and financial planning, reducing the risk of unexpected spikes in energy expenses.
3. Risk management: These frameworks allow schools to hedge against market volatility. By locking in energy prices, schools can protect themselves from sudden increases in energy costs due to market fluctuations.
4. Sustainability initiatives: Many energy procurement frameworks include options for purchasing renewable energy. Schools can align their energy procurement with sustainability goals, reducing their carbon footprint and promoting environmental stewardship.
5. Administrative efficiency: Centralised energy procurement reduces the administrative burden on school staff. Instead of negotiating and managing multiple energy contracts, schools can streamline their energy procurement processes, freeing up resources for other critical tasks.

Implementing energy procurement frameworks

To successfully implement an energy procurement framework, schools should:

• Conduct an energy audit: Assess current energy usage and costs to identify areas for improvement.
• Engage stakeholders: Involve key stakeholders, including school administrators, financial officers, and facilities managers, in the decision-making process.
• Select a procurement strategy: Choose a procurement strategy that aligns with the school’s financial goals and risk tolerance.
• Monitor and review: Regularly review energy usage and costs to ensure the framework continues to deliver the expected benefits.

The path to stability

Energy procurement frameworks offer a strategic approach for schools to manage their energy costs effectively. By reducing expenses, providing budget predictability, and supporting sustainability initiatives, these frameworks can help schools achieve greater financial stability. As educational institutions continue to navigate financial challenges, adopting energy procurement frameworks can be a crucial step towards a more sustainable and financially secure future.

Capita Entrust currently procure gas and electricity on behalf of 360 schools utilising a procurement framework. To find out more about our energy consultancy offer and how we can help you save money and enhance financial sustainability, please contact me at information@entrust-ed.co.uk