Electricity for Education User Guide. Low costs Budget certainty Dedicated point of contact at YPO and npower

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1 Electricity for Education User Guide Low costs Budget certainty Dedicated point of contact at YPO and npower ypo.co.uk/energyforschools

2 Key Contract Facts Fully OJEU compliant contract Contract name: The Procurement and Supply of Electricity for Non-Half Hourly, Half Hourly and Unmetered Supplies 791 Contract notice: 2017/S Length of contract: 1 April 2019 to 31 March 2023 Value of contract: Between 700 million and 1.2 billion 4 year contract i Why should I choose YPO for my school s electricity supply? YPO manages over 3,500 school energy accounts around the country and with such a large volume, it gives us excellent combined buying power to help us achieve the best pricing on your behalf. Like most schools and academies, we re a public sector organisation too and have the same objectives as you; to obtain the best possible service at the lowest price. No complicated jargon and no hidden charges we re here so you can focus your energy on our future generations, not your bills. Let's explain how it works... Local Authority buys energy from the YPO energy contract for their schools YPO buys the energy then uses a supplier (npower) to distribute it The YPO energy team work hard to manage excellent service or Schools and academies manage their own energy contract through YPO YPO reviews and helps you to reduce energy How did YPO choose npower as their electricity partner? The YPO energy team conducted a tender on behalf of existing and new customers in order to select a supplier who could offer a high quality service, as well as competitive pricing. Before starting the tender process, we engaged with schools to find out what they wanted from an electricity contract. The key drivers were: lower prices, budget certainty and excellent service. Evaluation of supplier bids Award of contract Tender process goes live Market engagement with national electricity suppliers Customer discussions to gauge requirements npower is the electricity supplier until

3 What electricity purchasing options are available? YPO fixed price contracts are great for budget certainty. The pricing is based on that day s electricity pricing which is a good option when the market price is low, but there s a risk that the price could increase from one day to the next YPO flexible contracts allow customers to take advantage of dips in the market and reduce supplier premiums. Customers will be provided with a 12 month price which allows for budget certainty, but the final cost won t be fully known until close to the contract start date YPO Budgetsafe is a different kind of fixed price contract. This is a new YPO contract option especially for schools and academies that provides budget certainty, which is important to business and finance managers whilst allowing customers to take advantage of any decreases in the price of electricity Below, we ve compared a fixed price contract, a flexible contract and YPO s Budgetsafe option for you: Instant Quote Benefit from Market Falls Budget Certainty* Dedicated Contact at Supplier - No Call Centre Beneficial Payment Terms Non-YPO Traditional Fixed Price Contract Fixed Price Contract Flexible Contract Budgetsafe * Budget certainty on commodity cost Other benefits when using YPO: Full compliance with EU procurement legislation Free monthly energy newsletter Free budgeting information for future planning Free billing validation checks Online portal to view consumption and bills Free energy advice and support Free school curriculum support Free introductory energy management qualifications 3

4 How do I compare prices with other quotes? We offer a transparent cost that allows you to compare prices fairly. We don t hide charges like some companies or brokers do. Take a look at the diagram below that shows the components of a typical electricity bill. Only around 38% of the bill relates to the actual cost of electricity. The rest relates to government and industry pass through charges and levies, which not all companies include on their quotations. Also, make sure you know the amount you ll be charged for management fees as this can vary considerably between suppliers. Look out for hidden charges on your electricity bill % 0.9% 0.9% 0.9% 0.9% 33% 36.9% 39% 40.3% 40.2% 27.2% 27.6% 28% 28.3% 29.9% 38.8% 34.6% 32.1% 30.5% 29% Supplier Management Fees Government and Green Taxes Network Charges Electricity Cost Don t get caught out! On your bill the electricity price can be quoted including all the chargeable costs, or with various parts removed from it. YPO can provide quotes in any way but we ll always be transparent about the total final cost of your electricity. We ll also quote like for like when comparing against your current cost. Please remember that electricity only accounts for around 38% of your total bill. It s really important you know about all the costs included to avoid big, hidden charges! Supplier Management Fees: The charges to manage your account and any profit the supplier makes. Government and Green Taxes: Fixed charges to support renewable technologies such as wind farms. These charges apply to all suppliers. Network Charges: The cost of getting the electricity to you via pylons and cables. These charges apply to all suppliers. Electricity Cost: The actual cost of your electricity. 4

5 There are lots of components that make up your bill! Use our handy check list when comparing quotes to make sure all applicable charges are included. Suppliers should always be willing and able to give you a full cost breakdown. Ask them to confirm in writing that all these have been included in the price they ve quoted you. Balancing Services Use of System Imbalance Risk Assistance for Areas with High Electricity Distribution Costs Scheme Management Fee Distribution Use of System Admin Distribution Use of System Capacity Distribution Use of System Commodity Transmission Network Use of System Renewables Obligation Feed in Tariff Climate Change Levy Metering/Settlement Contracts for Difference Capacity Mechanism Operational Capacity Mechanism Obligation What happens next? If you re interested in finding out a price using our electricity contract and what options are available to you, it s simple. Just follow the three easy steps below: Step 1 Please provide us with a signed Letter of Authority (LoA) on your school s headed paper we ve provided the LoA template for you in this user guide on page 7 Step 2 Dig out a copy of your recent electricity invoice(s) and us copies along with your signed LoA to: schoolsenergy@ypo.co.uk Step 3 The YPO energy team will be in touch to discuss how we can save your school money Step 6 Relax whilst npower and YPO set up your account. You ll receive a welcome pack giving you all the information you need Step 5 If you wish to proceed, sign the contract and return to the YPO energy team: schoolsenergy@ypo.co.uk Step 4 With your permission the YPO energy team will provide you with a no-obligation quote and draft contract 5

6 Your YPO Energy Team... Each YPO customer will receive a dedicated contact, ensuring continuity for you throughout the life of the contract. They ll get to know you and your school/academy and will work closely with you to help you understand and control your energy consumption, validate your bills and keep you up to date with changes in the energy market. What some of our customers say: Setting up our supply contracts was quick and easy. I was concerned that it would be a complicated process but YPO made it straightforward. - Emma Usherwood, Otley Prince Henry Academy The free YPO energy events that we are invited to are well organised and contain very useful content to keep us aware of market changes, and help us manage and reduce energy consumption. - Richard Smith, Doncaster MBC The support and knowledge of the YPO energy team is excellent and the prices from the energy frameworks always hold up to market comparison. - Steven Cope, Rotherham MBC 6

7 Letter of Authority (LoA) Template Please note: You ll need to include the wording shown below on your school s letterhead paper then print, sign and it back to us along with your recent electricity invoices to: schoolsenergy@ypo.co.uk By signing a LoA, it allows us to carry out a detailed price comparison on your behalf. Without this we can t give you a full picture on where you could be saving money on your electricity, or carry out a thorough comparison. If we can t save you money, we won t encourage you to sign up to our contract. YPO will never seek to sign you up to a contract without your consent or request permission to cancel your contracts without your knowledge, as some energy brokers have been known to do. Letter of Authority (LoA) To whom it may concern, I hereby authorise YPO to discuss our electricity contracts with its providers and to liaise with our incumbent supplier. This LoA shall remain valid for a minimum period of three months from the date of signature. I authorise YPO to: I. Request and receive current and historical account information including consumption history, supply numbers, pricing details, contract end dates II. Obtain information from third party industry databases, for example supplier; metering details III. Request prices on my behalf Date: Printed name: Signature: 7

8 Top Tips For saving money on your energy at school Check out our top tips and quick wins for effectively lowering your electricity bills! Switch off lights in unoccupied rooms. Consider investing in low-cost, automatic switches and utilise free daylight in lighting schemes. Turn off all computers, monitors and printers when not in use. Leaving on standby will cost you extra money. Only heat in-use buildings and rooms and reduce temperatures if possible. Reducing by just 1 c will have a positive impact on bills! Utilise npower s IA energy management tool. This will help you identify where electricity can be reduced. Avoid peak times of 4-7pm where possible. Electricity costs more at these times, so it s the best time to reduce consumption to save money. Check settings to ensure heating comes on and goes off at suitable times can these be adjusted over the school holidays? Invite pupils and staff to be energy champions to ensure these checks are carried out. YPO and npower will keep in touch with you to discuss how you can continue to save energy and money, throughout the contract. Cut and pin up on your noticeboard! Get in touch with the team to find out more: ypo.co.uk/energyforschools schoolsenergy@ypo.co.uk