Prices have more than quadrupled over the last year, and schools are being told to prepare for the worst

The ongoing energy crisis has seen the number of energy providers in the UK plummet over the course of 2021, leaving thousands of domestic and business energy users in no man’s land. Since this time last year, energy prices in the UK have more than quadrupled, and now schools are feeling the pinch as their overheads rise and bills grow.

A number of schools across the country have now been issued with letters from their local authorities, explaining the severity of the situation and instructing them to prepare for the worst. It’s expected that independent schools, academies and trusts alike will all feel the impact of rising energy costs.

Schools and the energy crisis: in numbers

Schools up and down the UK have been told to prepare for a spike in their energy bills, with Northumberland schools in particular making headlines in recent weeks.

The Council in Northumberland have warned schools of price increases in the region of 26% for energy and 48% for gas – a huge jump which means that, for many schools, an already stretched budget could now be ready to break.

With funding for many schools fixed, there is little room to cater for dramatic increases in overheads like utilities.  At best, many schools and trusts are forced to divert spending away from other areas such as equipment and facilities; at worst this crisis puts the future of institutions in jeopardy.

Our research indicates that, on average, the budgeted cost for the higher 25% of schools are paying £68.21 per pupil, with an average pupil count of 323. Price rises could lead to even greater numbers and greater pressure for schools trying to stretch their budgets.

What support will schools receive?

It is currently unclear what support schools will be given to cover the extra expense of energy costs. The issue will likely be made even worse by COVID-19 as schools may need to open windows to ventilate their buildings, resulting in even more energy usage.

The situation has been one of many consequences of the UK’s unusually low gas shortage capacity, as well as outages in the electricity system.

Writing to head teachers, Northumberland County Council said that an increase in energy invoices would be introduced to manage the increase in cost:

“Unfortunately,” they wrote, “this will mean higher invoices over the winter months, due to market impacts.

“If you have not already, now is the time to consider whether there are any steps you could take to improve the energy efficiency of your estate, especially during the winter months when power and gas demand is at its peak.”

Ian Laverty, Wansbeck MP, responded to the council by calling for “urgent clarification on what this means for schools and their budgets heading into the winter term.”

Consultiv Utilities can help you take control of your energy

It’s no secret that today’s energy market is a minefield, but Consultiv Utilities are on hand to help ensure that your organisation finds the best deal for you needs.

We can help academies, independent schools and trusts alike achieve energy cost reduction in order to redirect funds into other vital departments, offering peace of mind for your future. As a consultancy, our priority is to ensure customers understand their utilities, so we can make advisories on how to improve your current situation.

Even if you forecast your utilities to be fixed and prone to inflation, we are confident that we can cut your costs. We will work with you every step of the way to ensure that your utilities are both manageable and transparent.

Are you ready to improve your energy outlook? Get in touch with the team at Consultiv Utilities today.