Analysis / Assess complete value
Measure the benefit without counting the same saving twice
Use a clear baseline and separate the effects of price, consumption, tax, fixed charges and one-off corrections. Include the full cost of the support and the actions needed to achieve the result.
Agree the question and baseline first
Before award, specify what the school expects the service to improve and how the result will be assessed. Retain the supply points, periods, consumption, operating conditions and relevant cost components. Mark estimates and missing information. An adviser and the school should be able to reproduce the calculation from the retained records.
For a day or prep school, the calendar may be driven mainly by teaching and extended activities. A boarding or mixed campus adds residential operation; a group may change sites or provision. Record pupil and boarding numbers, occupied space, letting hours, pool operation and material estate changes where relevant. They help explain a result; they do not provide a universal formula.
Keep distinct effects in distinct lines
A lower unit rate changes the price of energy consumed. A controls intervention may change kWh. A corrected charge can produce a credit for a past period. A tax change can affect the invoice without showing an adviser has reduced consumption. Keep each effect separate and use consistent periods and boundaries.
Fixed charges can remain when use falls. Review standing, capacity and other charges on their own terms and include any cost of changing them. If a provider’s remuneration is embedded in the quoted rate, identify it for transparency and avoid adding the same amount again as a separate charge in the cost total.
For consumption measures, agree how weather, occupancy, opening hours and other material changes will be considered. Gas heating and a year-round pool may need different analyses. Ask the technical reviewer to explain the method and limitations. A lower bill alone does not identify why the cost changed.
A fictional example shows the arithmetic
The following electricity-only illustration uses invented figures. Assume 240,000 kWh at 25p/kWh before the change; a new rate of 22p/kWh; and a reduction to 216,000 kWh. For this teaching example only, assume the 24,000 kWh reduction is properly attributable to the implemented measures and other relevant conditions are comparable.
The new 22p rate excludes a separate £3,000 annual adviser fee. Implementation costs are £2,000 in the first year. All figures exclude VAT and every other tax, standing, capacity and variable charge, contractual volume consequence, financing cost and future maintenance cost. A real comparison must include the applicable items and correct tax treatment.
| Component | Calculation | Illustrative amount |
|---|---|---|
| Original commodity cost | 240,000 kWh × £0.25 | £60,000 |
| New rate at original demand | 240,000 kWh × £0.22 | £52,800 |
| Tariff effect | £60,000 − £52,800 | £7,200 |
| Demand effect at the new rate | 24,000 kWh × £0.22 | £5,280 |
| New commodity cost | 216,000 kWh × £0.22 | £47,520 |
| Gross commodity difference | £7,200 + £5,280 | £12,480 |
| First-year difference after stated costs | £12,480 − £3,000 − £2,000 | £7,480 |
Explain what the example does and does not establish
Valuing the 24,000 kWh reduction at the old 25p rate would produce £6,000. Adding that to the £7,200 tariff effect would overstate the total difference by £720. The consistent split above values the demand reduction at the new rate and reconciles to the original and new commodity costs.
Suppose a separate, confirmed £1,500 credit corrects a historic billing error. Record it as a one-off recovery for the correct period. It is not a recurring £1,500 saving in every future year and should not also be included in a demand-reduction claim. Reconcile it separately to the supplier account.
The £7,480 result remains a limited illustration. It does not establish the maximum procurement value, prove that the service fee is reasonable, calculate the school’s net tax cost or show that a contract is suitable. The forecast assumptions also require a later comparison with actual delivery.
Review actual delivery and retain the explanation
Keep a benefits register showing the proposed measure, owner, implementation date, baseline, forecast, full costs and actual evidence. Label each item as identified potential, approved action, implemented measure, reported result or verified financial adjustment. State who reviewed it and what verification covered.
Review the record with finance and estates at agreed intervals. Investigate unexplained movements and retain the reasons for changing a forecast. Keep safe, suitable learning and living conditions as operating constraints. Your next action is to put this measurement method into the continuing-service brief and use the resulting evidence in the school’s service and budget reviews.