Separate term, pricing and purchase timing

Three questions are often compressed into one. How long will the school receive supply? How will charges be priced? When will the energy be bought or the price agreed? A three-year arrangement need not mean all energy is bought in one transaction. An agreement signed in advance can start later, and its supply dates need to match the existing contract.

DfE guidance describes common one-, two- and three-year contracts, alongside shorter arrangements. Longer periods also exist in the market. Availability depends on the provider, product, customer and prevailing conditions. The options below are a decision framework, not an assertion that every supplier offers every duration.

What different supply periods ask of the school

Understand the trade-off before looking at prices

Longer fixed pricing may provide certainty over specified rates and reduce repeated procurement work. The school remains committed if later market prices fall. A shorter period permits an earlier review but exposes the school sooner to whatever replacement prices and products are available.

A flexible strategy has a different uncertainty: the term may be known while some purchase prices remain to be determined. Evaluate it using the agreed buying rules and realistic scenarios. Do not compare a fully fixed cost with an optimistic flexible forecast as though both were equally certain.

Put future demand changes into the conversation now

Before seeking offers, list changes expected during the longest term under consideration. A boarding operation, swimming pool, evening lettings or new nursery can create a different demand profile from an ordinary day school. Where solar or heating changes are already planned, include their supported effect on purchased electricity and gas as forecast inputs.

Trust growth, academy conversion, mergers and site closures need equal attention. Ask for written provisions covering meter additions, removals, changes of legal customer and early exit. Contract alignment can simplify administration, but extending or shortening individual supplies has a cost and requires an appropriate procurement basis. Administrative convenience is one factor, not the whole justification.

Start early without trying to predict the perfect day

Work back from both the supply end date and the earliest relevant notice deadline. Allow for data gathering, route selection, approvals, evaluation and any required procurement process. Fast-moving quote validity should be handled through delegated authority and clear limits, rather than rushed governance.

Ask the adviser to distinguish a forward-start offer from a promise about future prices. Earlier contracting does not automatically mean cheaper energy. Document why the timing meets the school's objectives, what alternatives were considered, and what risk remains. A procurement timetable is more useful than an unsupported claim to identify the market bottom.

Compare periods fairly

Use consistent meters, expected usage and charging assumptions. Show the annual forecast and the total commitment for each option. Explain the uncertainty after a shorter contract ends rather than inventing a future renewal price. Where scenario prices are used, label them as assumptions and show their effect transparently.

Keep broker fees visible across each full proposed term. A small consumption-based uplift accumulates differently over one year and five years. If fees fund continuing support, specify what support is owed in each year, how performance is reviewed, and what happens if the service relationship ends before the supply agreement.

Record why this period fits

• Our chosen supply dates and pricing method are recorded separately.
• The term matches our budget tolerance and realistic estate plans.
• We have evaluated the total cost, contractual obligations and uncertainty.
• The appropriate people have approved the commitment and acceptance authority.
• Renewal, notice and review dates are already in the contract register.