For special schools, energy costs can be significantly higher than in other educational settings, with the average expense exceeding £250 per pupil. This challenge is often amplified in schools housed in older buildings, where outdated infrastructure and poor insulation result in inefficiencies that drive up energy consumption even further.
We asked Rob Walton, a Partner in the Real Estate team at the law firm RWK Goodman, to share some practical steps our member schools can take to reduce energy costs and improve long-term energy efficiency. Rob, who specialises in Education, Health and Social Care, Charities and Energy, has also kindly produced some additional resources for NASS members that include useful guidance on areas such as what to look out for in an energy contract and small efficiencies that schools can look at immediately as part of an overall energy efficiency strategy. If you are a NASS member, this factsheet is located in the Member Resources section in our Member Zone.
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Energy costs are one of the largest outgoings for schools, with lighting and heating often costing schools tens of thousands of pounds annually.
Energy costs can vary markedly between schools. For instance, median cost per pupil are highest amongst secondary schools, particularly in London, where they exceed £100 per pupil. In contrast, primary schools average around £50 per pupil, while special schools incur much higher costs, averaging over £250 per pupil.
Schools have two options for managing these costs: reducing overall energy costs and generating additional income.
In this blog we will look at reducing energy costs, particularly through energy contracts and energy efficiency measures.
Understanding limitations
The ability to enact these measures will of course be limited by the category of school. For example, an independent school or Multi-Academy Trust that owns its freehold has more freedom than a local authority school. It’s important to first identify any restrictions that may limit actions, such as agreeing to third party contracts or making alterations to a property. In many cases, schools may require ESFA consent or, if the property is held under a lease, then consent from the landlord.
Energy Certificates
All schools will have Display Energy Certificates (DEC). However, if any of the buildings are to be let out or sold, then an Energy Performance Certificate (EPC) is also required. This is important as certain circumstances can mean an EPC is required such as third-party provision of care (e.g. breakfast clubs...etc) where a lease is in place, caretaker cottages, sub-letting to a local authority or other entity such as a scout hut, for example.
The energy certificates give a guide to the energy efficiency of buildings and it should be noted there are minimum efficiency levels. If buildings are below those levels, work will have to be carried out before they could be sold or let, i.e. if it is below E. Indeed it is likely future legislation (through updating Minimum Energy Efficiency Standards (MEES)) will require properties to meet a higher rating. Therefore, focusing on improving buildings with lower ratings should be looked at first to improve their energy efficiency not just for energy savings but also for legislative compliance.
Additionally, these certificates can also be used as a valuable tool since they have recommendations for improving the energy efficiency of a building.
Energy Efficiency
To improve energy efficiency, schools should first establish a policy that includes adequate measurement facilities and established systems. Next, they can look at steps which require minimal financial outlay, this could include conducting a building assessment and review monitoring where energy is lost. In our factsheet for NASS members, we have highlighted some example micro-efficiencies that can be looked at immediately for minimal financial outlay.
Energy Contracts
Schools often opt to outsource procurement expertise on energy through a broker or reverting to an external process. Despite having procurement capabilities, the majority of school groups do not run their own energy procurement process. Instead, schools commonly employ a broker, local authority (LA) or a LA established company. Whilst these processes simplify procurement, they may not always necessarily yield the best deals.
To maximise savings, it is first of all important that you have accurate figures as to your energy usage in order to compare like for like. One option is to utilise specialist energy brokers. If using an energy broker, it’s wise to utilise one that works directly in the sector. A one-off comparison of energy prices is not always very meaningful – you should seek a long-term trend comparison to determine whether fixed or variable contracts are more beneficial. This can be achieved through a specialist who will look at trends over the past year or internally through continuous monitoring of energy usage and market comparisons over a period of time.
For special schools, larger organisations such as Multi-Academy Trusts or groups of independent schools can take advantage of bulk buying. Local authorities or public sector buying authorities can also provide support. Additionally, the National School Buying service offers resources for schools seeking procurement assistance through the initiative - Buying for schools: get free help from procurement specialists (www.gov.uk). We have provided NASS members with further details on what to look out for in energy contracts.
Taking control of your energy efficiency
Managing energy costs and efficiency can be a significant challenge for schools, but by understanding the tools at your disposal such as those set out above, schools can make informed decisions that reduce outgoings and improve sustainability. Indeed, schools that act strategically in this way can also future-proof their facilities against upcoming legislative changes.
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