Following on from the Bursars’ meeting last year, we are pleased to update you on Haringey’s new energy contracts from 1 April 2020 and opting for us to purchase your school’s energy through our value for money contracts.
The current Crown Commercial Service (CCS) framework and supply contracts with EDF, British Gas and Corona expire on 31 March 2020. Our new framework provider will be LASER, a public sector central purchasing body (CPB) owned by Kent County Council. Npower will be the supplier for electricity and Corona the supplier for gas.
By accessing the framework, your school will be purchasing competitively priced renewable energy and you also access a range of other benefits including energy audits and energy efficiency measures. Your school will benefit from support from Haringey’s Energy Management team with any billing or metering queries and can access Haringey’s value for money water contract as we leave Castle Water for Wave.
The new energy contracts offer a wide range of benefits including:
Renewable energy
- The environment is an important issue for our schools, which is why we have ensured that 100% of the electricity purchased in our contract will be generated from renewable sources such as solar or wind.
- The renewable electricity will be backed by Renewable Energy Guarantee Origin (REGO) certification and all schools will receive certification on this once set up.
Value for money
- We know that budgetary concerns remain a high priority for all schools. Over many years now, Haringey’s contracts typically achieve better prices than the market average, delivering long-term savings on energy bills. Average savings for the most recent three-year cycle of the Haringey Contracts showed savings of between 2-6%.
- By buying energy at such scale, across London boroughs and other public sector organisations, the frameworks we are part of attract much better prices than individual site level procurements.
- While we cannot provide prices for the new contracts at this moment in time as our suppliers will be actively trading energy up to the day before the supply period starts to ensure the best prices possible, once in contract, you will receive pricing at the beginning of each financial year so you will have price certainty for that year.
- Our suppliers have a risk-managed approach to purchasing energy, over a long period in advance of the supply periods. This reduces the impact of sudden price changes in the market. Other suppliers may go out to the market on any single day and spot-price. If the market is high that day, you risk be subject to that price for the duration of your contract period.
Pathways to zero carbon
- As well as renewable energy, schools are increasingly asking for ways to improve the energy efficiency of their buildings. As well as reducing bills, energy efficiency measures also improve thermal comfort and working conditions for both staff and pupils.
- Haringey’s new contracts include energy audits, available for free for your school. These will identify opportunities to improve energy efficiency, in the short and longer term, and individually tailor pathways to zero carbon for your school.
- Through the framework, schools can also access energy efficiency improvements such LED lighting, solar PV and other energy services including automatic metering and Display Energy Certificates (DECs).
- We recognise that schools will play a huge part in helping Haringey to realise our zero carbon targets and we look forward to working with you to achieve this.
Additional benefits
- Your schools can be assured that our suppliers pay the London Living Wage.
- Schools on Haringey’s energy contract can also access Haringey’s water contract with Wave (Anglian Water for Business). As well as value for money supply, you can also access a water footprint report, water efficiency measures and automatic metering.
- Support from Haringey’s Energy Management team with supplier queries and billing – we’re here to help!
The new energy contracts have been procured though a framework run by LASER and the OJEU compliant procurement was run by the London Energy Project (a collaborative public sector Category Management resource) on behalf of London and South East local authorities and other public sector organisations.
Contract term dates
The contracts will run from 1 April 2020 to 31 March 2024, with a one-year option to extend to 31 March 2025.
Termination notice dates
If organisations wish to leave during the term of the council’s Energy Contract, a two-year notice period will be required. This would need to be provided in writing by the end of March two years in advance of leaving. This will reduce the amount of energy the council purchases on your behalf in advance, as this in ‘advance purchase’ offers us cheaper rates.
If your school’s energy supplies are on the current Haringey contract and you do not wish to join the new contract, you will need to let us know by 31 January 2020 and we will remove you from the contract. However, you will need to get new energy suppliers in place by 1April 2020 following public procurement rules.
Risks of opting out
- No longer receive the benefit achieved through this at-scale procurement with other London boroughs and public sector organisations (such as the Met. Police and TfL).
- Going onto higher out of contract rates if no contract is put in place by 1 April 2020.
- Brokers often ask for at least three year contracts. These often start well / cheap, but end far more expensively, but you will not be able to leave during the term of contract.
- Haringey’s Energy Management Team will be unable to support organisations not on the energy contracts for help on water suppliers and bill issues. Organisations will need to procure their own water supplier from April 2020.
- No support from Haringey’s Energy Management team with energy billing or supplier queries.
Opt in/out
Please confirm if you would like your school to opt in or out of the new energy contracts as soon as possible – by 31 January 2020 at the latest.
If your school’s energy supply(ies) are already on Haringey’s contract, the energy supply(ies) at your school on the existing contract will automatically be included in the new contract from 1 April 2020 if we do not hear back by 31 January 2020. This will ensure you do not fall out of contract with higher costs.
We would also welcome back any organisations that have previously left the council’s energy contract, if their existing contracts allow them to do so.
We are more than happy to discuss further any of the points above so please do not hesitate to get in touch if you need any more information at all.
Kind regards,
Risa
Risa Wilkinson
Energy Manager
Carbon Management Team
River Park House 6th floor
Haringey Council
225 High Road
Wood Green
London N22 8HQ
T. 020 8489 2178
E. risa.wilkinson@haringey.gov.uk