Education sector overspends on energy

ACADEMIES, SCHOOLS, COLLEGES, UNIVERSITIES

Increasing costs, significant budget cuts, and overspends on energy

As a result of the government’s freeze on school funding it’s no surprise that staffing levels have come under the spotlight. Brian Lightman, general secretary of ASCL, which represents the majority of secondary school head teachers in England, said that “schools face rising costs without any additional money to meet them, this is a significant real-term cut in their budgets.”

But there is a way to help budgets stretch further to ensure that we do not lose teachers, lecturers and support staff. An analysis by Siemens Energy Efficiency Financing (EEF) scheme recently found that the education sector overspends on energy by as much as £173 million per year, due to inefficient technology, equipment and controls – money that should have been spent on wages.

Poor management of utility contracts causes schools to overspend on energy

Many schools overspend on energy and water bills simply because they don’t understand the utilities markets, the contracts, tendering techniques and cost management, causing them to overpay. This particularly occurs when they move to default rates following contract expiration. Such rates are usually much higher — sometimes up to 50% more expensive.

It makes sense to tighten the management of energy and water costs, and plan to switch and spend less. When it comes to renewal, all contracts should be put out to tender to gather as many quotes as possible in order to identify the best value for money deal. Often the renewal price of an existing contract at the end of the term is significantly higher than those that can be found by shopping around.

But, very often schools don’t have the time, resources or the expertise in-house to manage their utility costs. We research the market, source, negotiate and procure the best value for money for all energy and water contracts for all kinds of education organisations – schools, colleges, academies and universities. Since the deregulation of the non-domestic water market in April 2017, we have been procuring water at competitive prices for our school and university clients. Head over to our water services page to see how we can save you money. You’ll never overspend on energy or water again.

Audit, measure and monitor for tight budget control

By monitoring energy prices throughout the term of an agreement, we can help institutions renew contracts early – even two years before the expiration if a new price is particularly attractive. Institutions that wait until the end of their contracts are forced to take the best available rate at that time, which might not be as good as rates in the previous months.

We create an asset register for our clients, a crucial step in monitoring all utility expenditure across multiple buildings and locations. This will help keep track of all contracts and invoices, and identify when they need to be renewed. It’s also crucial to check each invoice with ongoing bill validation to ensure it’s accurate and for the agreed amount.

With historical cost analysis and reconciliation, we can help schools and universities spend less and claim refunds that date back as far as six years. We will also save you money in areas you may not have considered before, such as optimising waste efficiency and managing your waste contracts. Take a look at our waste optimisation services to see how we can benefit your school.

Spend less with a smoother,
more cost efficient administrative process

We provide bursars, managers and academic staff with the data and tools they need to enable the institutions to make informed choices quickly and to spend less overall. Outsourcing key tasks such as ongoing bill validation, as part of our Efficient Cost Management service, and the creation of asset registers makes the decision-making process even smoother and simpler for our clients.

A key way to spend less money on energy is to reduce your consumption altogether. Our sustainability services are aimed at streamlining and minimising energy use, benefiting both the environment and your wallet.

WHAT YOU NEED AND HOW WE CAN HELP

More time and ease of mind

Lift the workload for you to focus on other duties

Why get caught up in validating utility bills when you can delegate it to industry experts who know the energy, water and waste markets like the back of their hand?

Budget control

Invoice validation and historical cost recovery

We ensure that no unnecessary payments are being made, and with our thorough cost analysis, we can even get you refunded for wrong payments made in the past. We also check the VAT rates for potential refunds and correct them for future invoicing.

Up-to-date asset register

Streamline your utilities to maximise savings

The chances are you may have two meters at one site, you could be paying for sites you no longer own, or even still be charged for removed meters. We ensure none of this happens with our Smart Asset Management.

More contract savings

Best prices ensured with intelligent procurement

Our experts scour the market to find you the best deals and pick the best moment to procure them. Reduce your overheads and get the best prices for your energy, water and waste disposal management.

Operational efficiency

Co terminus contracts for your convenience

Tie up those untidy loose ends and have all contracts end together.

Dedicated customer service

One-point customer service

You will get your own personal, regular point of contact at Monarch, so nothing will be lost in communication.

ACADEMIES, SCHOOLS, COLLEGES, UNIVERSITIES

Increasing costs, significant budget cuts, and overspends on energy

Poor management of utility contracts causes schools to overspend on energy

Audit, measure and monitor for tight budget control

Spend less with a smoother,
more cost efficient administrative process