From education to employment


You have 2 options:

use a framework
use an energy consultant or broker

The option you choose will depend on your school requirements and circumstances.

Use a framework

DfE reviews a range of frameworks. These are assessed for compliance with procurement regulations, ease of use, suitability and value for money.

Find a DfE approved framework for your school

If you use an energy framework, your usage forms part of an aggregated purchase by the framework provider.

This gives the provider combined purchasing power and the ability to secure better energy pricing and lower supplier management fees.

Buying from a framework can be quicker and easier than getting bids or quotes because the agreements:

have already been through a full competitive tender process
have been quality checked
are checked to make sure they comply with the law
may have support available

If you’ve chosen to use a framework, use the documentation provided by the framework supplier to make sure you’re covered and understand the framework terms and conditions.

Use an energy consultant or broker

Before you use an energy consultant or broker, be aware of the additional costs for this service.

Running an energy procurement can be complicated. Many schools use an energy consultant or broker, sometimes referred to as third party intermediaries (TPIs).

When using a third party intermediary, you may be charged a one-off fee for their support or an additional cost per kWh added to your energy bill.

This is paid to the third party intermediary through your supplier. If there is an additional cost per kWh, you need to calculate this across the length of the contract to understand the full cost of the services provided.

Calculating the cost of a TPI

Pence/kWh x annual consumption (kWh) x number of years (length of contract) = cost

A TPI should provide written confirmation of:

charges and how they will be billed
how they will complete your energy requirements
how many suppliers they will approach on your behalf
evidence they comply with the Ofgem voluntary principles

A TPI will ask you to provide them with a letter of authority (LoA). Usually this is a template which you’ll be asked to print and sign on your letterhead. This is normal practice.

The letter of authority should not give the TPI permission to sign or agree contracts on your behalf. It should not have a duration longer than what’s needed to gather the information required.

If you decide to accept one of the offers submitted to you by the TPI, you’ll be issued with a draft contract from the energy supplier. You should check this contract before you sign.

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