Energy Update
Market Update
After wholesale energy prices reached unforeseeable record highs in 2022, this year has seen energy markets begin to lose value. The fears of insufficient supply to meet demand did not materialise, thanks to a mild winter, lower industrial usage and an increased volume of Liquefied Natural Gas. Indeed, European gas stores were higher at the end of March than they have been on that date in the last 5 years.
This has all helped drive wholesale prices down, however they remain much higher than before the start of the energy crisis and there is no guarantee they will continue to fall over the course of the year. There is no sign that Russian piped gas will return to European supply any time soon, which will make refilling gas storage over the summer more challenging, and we may not be so fortunate with winter weather this year.
While we hope that prices do continue to fall, our energy traders need to balance this against the risk of further market volatility and events that could lead to another increase in costs. This is done by constantly monitoring the market and hedging a proportion of the energy volumes our customers need via multiple transactions, allowing us to manage the risk of a spike in prices while ensuring you still benefit if the market continues to fall.
Renewal reminder - Electricity (191)
In our September issue we communicated the deadline of 31 January 2023 to guarantee acceptance into year 1 of the flexible basket for Electricity (191), however the markets have since settled and shown a decrease in wholesale prices, meaning that we are able to keep entry open for October 2024.
The markets may be looking better than they have for some time but there is still uncertainty in global affairs and energy storage, therefore access to the framework could be closed at very short notice.
If you haven’t already, we strongly encourage you to return your Docusign contracts or contact us to discuss your options.
Department for Education (DfE)
We are continuing to support the DfE’s ‘Get Help Buying for Schools’ initiative and have presented at several of their webinars, explaining our frameworks and providing insight into the energy markets. Together, we have engaged with hundreds of education providers and enabled organisations to make informed decisions.
You can register for the next webinar, 13 June 2023, here
Government grant
By now you should have received the DfE’s energy grant for your school, designed to support you with energy efficiency building upgrades and reducing energy consumption. More details can be found here.
If you need help or advice on how to make the most of your grant, then please get in touch. We can discuss energy surveys, results and much more.
DfE-approved frameworks
We’re pleased to say that ESPO’s range of DfEapproved frameworks has expanded and now covers multiple energy frameworks including Electricity (191), Mains Gas (192), Renewable Energy Solutions (2838) and Liquid fuels (301).
The DfE offers approved frameworks as a service to help school buying professionals source goods, get value for money and comply with relevant procurement regulations. Our own frameworks are designed with the same goals in mind; we are thrilled that this is being recognised on an increasing number of our frameworks. Find out more here.
We will be attending the Schools and Academies Show in London and Birmingham this year.
You will find us on stand C16!
Energy Performance of Buildings Services (343) has been extended
We are pleased to advise that Framework 343, Energy Performance of Buildings Services, has been extended for a 12-month period to 30 June 2024. Lot 1 and Lot 2 of the framework provide a quick and easy route to obtain Energy Performance Certificates and Display Energy Certificates, that meet regulatory requirements regarding energy efficiency reporting.
Lot 3 provides for the delivery of any other energy related surveys, most commonly the performance of energy audits to help improve the efficiency building stock and save money on energy bills.
The framework is approved by the DfE and can help education customers to make informed decisions regarding use of their energy grants.
New Fixed Price / Fixed Term Framework
Following your feedback regarding fixed energy contracts, we are pleased to announce that we are beginning the procurement process for a new framework which will enable us to send out quotes from multiple suppliers and present a variety of options to customers for their future energy supplies.
This will be an option in addition to our flexible package, which is approved by the DfE and the Cabinet Office as the preferred procurement method for Energy within the public sector.
Energy microsite
The last few months have been hugely unsettling for the energy market, leaving many feeling overwhelmed by the procurement process. It can be daunting thinking about where to start, who to trust and how to make the most of your money.
Our new energy hub is a central information point to make things clear, simple and efficient for you. Read up on everything from our buying techniques and energy supplier to our frameworks and extra services. Find out more here
Anthem Trusts.