Advice from the Finance & Accountancy team at School Business Services on how to manage the impact of rising school energy costs and pay increases.

We hope this is useful information for you and we're happy to go into more detail: 0345 222 1551 - Opt. 5 | hello@schoolbusinessservices.co.uk

1. Get on top of the school budget

• Ensure the school budget is reforecasted with all known increases. Keep in mind that:
  
  • • Pay awards are yet to be finally agreed by Unions and may still increase further
    • Energy price caps are due to rise on October 1st, and again in January.
    • There are also changes to the legality of term-time only contracts

• Ensure that you can provide Governors and Trustees with projections that take a range of scenarios into account. It’s important that they understand all possible outcomes so they can ask the correct questions and realistic plans can be made. 

2. Managing school energy consumption

There are many energy consumption reduction strategies:

• Energy monitoring: Smart meters and loggers are available to monitor usage in real time and where the demands are in the school estate. Analyse the trends and set a strategy.
• Energy saving: Day-to-day practices include closing off rooms and the areas of a building when not in use, purchasing modern (more energy efficient) equipment and automatic shutdown of devices - more tips >

3. Review school energy contracts & understand the market

• If a school is in a contract that is running down they are going to have to go back to market when that contract comes to an end. When starting new contracts, energy costs are now around 3.5% school's budget with a risk to other commitments. Review who the school is procuring energy through, what the current terms are and calculate the school's energy usage.
  • • Shop around throughly and refer options to an education-specific body (such as ISBL), rather than giving in to cold callers and/or simply sticking with a current supplier - more guidance here >
    • Understand the market to be able to make quick, confident decisions. The rates can change often and an opportunity can be missed if one hesitates, so understanding typical contract costs, the hidden costs and what terms to look for in the smallprint well in advance can give a buyer powerful insight to pounce on a good deal with complete confidence when it comes along. It's a bit like shopping for a good used-car, but that's an analogy to unpack in a future blog...