Question to the Department for Education:

To ask the Secretary of State for Education, what assessment her Department has made of the potential impact of the comparable pricing requirement for alternative energy contracts in the Academy Trusts Handbook on competition between procurement routes.

The department is currently drafting and finalising guidance for academy trusts which includes definitions of what constitutes comparable pricing and value where they are seeking to benchmark their energy costs with the Energy for Schools route. This guidance will be published prior to the effective date for the 2026 Academy Trust Handbook, which is 1 October 2026.

The department’s approach is to support academy trusts in simplifying and securing value for money from energy procurement, while retaining flexibility to use alternative routes where they can demonstrate pricing comparable to that available through the department’s Energy for Schools service or a department approved energy deal. The department expects trusts to continue to act in accordance with their broader responsibilities to achieve value for money and effective stewardship of public funds. The guidance will include definitions of what constitutes comparable pricing and value where they are seeking to benchmark their energy costs.

The department carried out a pilot prior to full implementation of Energy for Schools. This involved benchmarking actual energy usage data and pricing provided by individual schools and Government Commercial Agency (formerly Crown Commercial Services), comparing 12 months' worth of a school’s historic invoices with what a school would have paid under the department’s contract for the same period. Recent benchmarking has demonstrated that a typical primary school can save £4,900 a year and a typical secondary school £23,200 through the department’s deal.

The department’s policy is to support trusts in simplifying and securing value for money by making available the department's Energy for Schools service and department approved energy deals. At the same time, it continues to permit alternative procurement routes where trusts can demonstrate comparable pricing or value. The requirement does not prevent trusts from seeking alternative suppliers or procurement arrangements and allows trusts to access the wider energy market where competitive pricing can be evidenced.