Virtual Schoolbag (VSB)

25 Mar 2019
Business managers, bursars and secretaries, headteachers of all schools
For information
Information
NA
2019/098
Energy pricing for 2019-2020 update and year end reads

As above.

Energy Pricing for 2019-2020

Around this time every year the Energy Team aim to update customers on energy price changes.

Please see below for an explanation of the two main elements of the gas and electricity charges and the increases we are expecting to see at portfolio level. This information is provided to give an estimate of likely price changes.

There are two main components of the bill, the wholesale cost (tradeable element of the charges) and the non energy cost element (NECs).

Non energy cost element (NECs).

Gas 28% of your total invoice costs are for the non energy cost element.

HH and NON HH Electricity 60% of your total invoice costs are for the non energy cost element.

The non-energy costs element (The cost of physically delivering the product through cables and pipes including some taxes and charges set by the government) please note these are industry set charges and cannot be reduced by moving supplier. We are estimated to currently see the following price changes

Gas 2.4% increase

Electricity HH and NON HH are 12% increase

For those sites which attract a Climate Charge Levy (CCL) please be advised from the 01.04.19 the CCL charge will be increasing to:

Electricity 0.847 ppkWh from 0.583 ppkWh

Gas 0.339 ppkWh from 0.203 ppkWh

This increase is reflective of the CRC reporting scheme being brought to a close at the end of this financial year. 

The wholesale element of the energy price is the part which is prone to market forces and for which it is important to have an effective trading strategy. If you recall CCS purchase Energy for ESCC sites and the purchasing happens 6 months in advance of the supply period. This allows sites to know fixed costs for the forthcoming year. Purchasing will be concluded on the 31.03.2019 therefore Energy aim to confirm the final price change during April 2019.

Below is an estimated guide to expected price increases at portfolio level.

Gas

Currently CCS purchasing is suggested to be an increased around 15%

Electricity NHH

Currently CCS purchasing of NHH electricity is suggested to be an increased around 18%

Electricity HH

Currently CCS purchasing of HH electricity is suggested to be an increased around 18%

To provide and estimated overall expected increase for this coming financial coming year please see the follow suggestion:

Gas 11% increase

Electricity 14% increase

Water 4% increase

In summary, the Energy Team buys energy via CCS (Crown Commercial Service), a government procurement framework that gives you the benefit of bulk buying power from buying with many other public sector organisations. This means we get a much better price than if for example a school purchased alone or even if we as a County Council purchased for our whole non-school and school estate. In previous procurement exercises CCS have performed very well on price. A report on their purchasing performance is released annually and the last years report for 17-18 is posted on CZone under the Energy pages and contracts and supply.

Our advice to schools is to monitor your energy use via tools such as the web based Energy Viewer. To work out when and where you are using energy and if you can eliminate any unnecessary use via no cost measures, such as switching things off when not in use or looking at energy savings projects such as lighting, insulation and heating controls.

Year end reads request.

Meter reads: If possible, please take reads from your meters before the end of March 2019. Please send the reads to energy.team@eastsussex.gov.uk. To assist with administration, please state the subject title as: Year-end read for your site name.

When providing reads please state the utility type and the meter serial number the read was taken from. Please note that some electricity meters have two or more rates, if in doubt please take down the display information you can see on the meter in “parrot fashion” and send all the information. This reads will be held on file to support any billing disputes in the future. Thank you in advance.

Should you have any further queries relating to this article or require any further assistance, please do email Energy.Team@eastsussex.gov.uk and energy will assist with any enquires.

 

Andrea Shearing
Andrea Shearing
Principal Energy Account Officer

Phone: 01273 481482
Email: energy.team@eastsussex.gov.uk