Begin with the requirement, not the product label

A bursar needs to understand how an offer behaves when energy use, charges or school plans change. Ask for the charges fixed, the charges that can vary, the supply dates, the volume assumptions and the acceptance terms. The answer must come from the written agreement and schedules.

For a boarding campus, winter heat and hot water may matter differently from a small day school’s teaching timetable. A group may need a consistent buying strategy while retaining different legal customers or end dates. Describe those needs before asking which product a provider would recommend.

Separate five commonly encountered approaches

The descriptions below are a starting point for discussion. Providers use product names differently, and a label does not override the contract. Ask the adviser to mark the relevant clauses and explain their practical effect in school language.

Know what the apparent certainty leaves open

A fixed unit charge still produces a different bill when kWh changes. Tax, law, contract exceptions or other specified items may also affect the total. A pass-through arrangement needs a clear list of variable components; a vague assurance that “only unavoidable items change” is difficult to budget or challenge.

Flexible purchasing needs more than a reassuring account manager. The school must understand decision rights, purchasing limits, reporting and the treatment of unbought demand. If a provider makes trades on its behalf, the authorised strategy and escalation process should be documented before purchasing begins.

For a basket, ask how the school’s entry and departure are handled, whether it inherits purchases already made, how prices are allocated and what happens if demand changes. Aggregation may be useful, but belonging to a larger portfolio does not itself establish the best outcome for this school.

If a renewable tariff or related generation agreement is part of the comparison, state the claim the school intends to make. Ofgem’s REGO scheme provides evidence of renewable generation, issuing one certificate per MWh of eligible output; its primary use is supplier fuel-mix disclosure. Ask what evidence supports the particular product and consumption period, who receives the environmental attributes, whether certificates can be sold separately and who will provide the school’s evidence. A supplier’s overall fuel mix and a product-specific claim answer different questions.

Agree the reporting method and boundary before treating that claim as a quantified carbon benefit. The GHG Protocol Scope 2 Guidance sets quality criteria for contractual instruments used in its market-based method. Retain the supporting product or attribute evidence and the reviewer’s conclusion. If the existing tariff already supports a zero market-based electricity figure, replacing it cannot produce a further reduction in that same figure. Explain any change in imported kWh, cost or other claimed benefit separately and compare both supplies on the same method.

Consider length alongside the decisions you can foresee

Ofgem explains that business agreements can extend to five years. Availability varies. The following periods are planning prompts, not offers or recommendations. A longer arrangement may reduce repeated procurement work, but it can also extend fees and constrain the timing of the next decision.

A planned heating or generation project gives the duration discussion a specific date and dependency. Ask whether each offered term can accommodate the forecast transition and a credible delay, and what that flexibility costs. An earlier renewal can leave more room to revise the requirement while exposing the school to another buying exercise and unknown future prices. A longer term needs an acceptable written treatment of the changes expected during it.

Use equal comparisons and acknowledge unequal horizons

Compare offers over a common demand and date basis, showing complete delivered costs and tax assumptions. Then separately show the duration-specific commitment, fees and uncertainty. A one-year illustration cannot establish that a three-year deal beats a two-year deal across every possible future market.

If one proposal ends sooner, do not enter zero for its remaining period in a longer comparison. Identify the later renewal exposure and test explicit assumptions if the board needs a common forward horizon. Label those assumptions as scenarios; they are not future supplier prices.

Write down why the recommended structure suits the school’s capability and risk appetite. Predictable budgeting, access to an earlier review, administrative capacity and managed purchasing can each matter. Explain the trade-off rather than claiming that one type or length is inherently cheapest.

Resolve the clauses that could change the result

Review volume tolerances, changes of use, adding or removing meters, transfers to another legal customer, early termination, security and payment provisions. Ask how an estate sale, closed boarding house or material fall in demand would be treated. The relevant answer may require supplier agreement rather than a routine account amendment.

Ofgem advises business customers to check notice, switching and exit terms. It also warns that a business energy agreement can be binding by telephone and has no cooling-off period. Agree in advance who is authorised to accept and require the full offer and terms for review before that step.

Keep the supply commitment separate from the TPI appointment. Establish each term, termination process and continuing service. An adviser’s appointment should not silently authorise acceptance of supply contracts or trades beyond the school’s agreed limits.

Leave with a short recommendation people can challenge

Bring together the product explanation, cost comparison, term rationale and a short clause-risk schedule. Identify any unresolved supplier answer, the person checking it and the date needed. The board should understand what is fixed, what might change and what would trigger a fresh decision.

The DfE energy guide offers useful general explanations of contract structures. Its state-funded-school support and approved-route requirements are not automatically this independent school’s route. Check eligibility and the school’s own legal position separately. Use this guide with your governing documents, buying policy and the actual contract, rather than importing an academy approval template.