Management Information Sheet
New Heating Oil Contract (ESPO Framework 301) - Important Changes
ESPO has released a new framework to replace the old heating fuel contracts. The new framework starts from 1st October 2022 and is significantly different to the old one. All schools on the current framework should have been notified directly by ESPO. However, for those sites not on the current framework or have not been notified by ESPO of the change please take note of the below.
The main changes are that there are now two options. Either a direct award to a supplier for the entirety of the framework or a further competition. It is recommended that a direct award is selected so that there is certainty of the supplier and a reduction in risk of "non-compliant" fuel purchases.
The cost of the fuel is fixed to the Platts index (so all suppliers will supply the fuel based upon this rate), however each supplier has their own mark up. Under the framework this is split into two elements:
- Pence per litre (in addition to the Platts price). This varies with the type of fuel required - ie kerosene C2, gasoil A2 etc
- Small Load Premium. This is an additional pence per litre based upon the quantity delivered. Each supplier has allocated an additional cost and their own bandings.
This means that if you have a small amount delivered you will be charged more per litre than if you have a large delivery.
Once these two factors are taken into account you may find that one supplier has a small price per litre markup but a large, small load premium, or vice versa for another supplier. A decision will need to be made based upon your individual circumstances, however it is strongly recommended that all heating fuel purchases are made via the framework in order to obtain best value.
Norfolk has been categorised as Lot21 there are five suppliers on the framework for this area: -
| Suppliers |
|---|
| BWOC |
| Certas Energy UK Ltd |
| New Era Fuels Ltd |
| Rix Petroleum (Hull) Ltd |
| Watsons Fuels |
It is worth noting that not all suppliers offer all grades of fuel.
Having evaluated the prices, fuel type and delivered quantities across the estate we are recommending that Rix is our preferred supplier. This was checked against three datasets: non-school properties, school properties and a combined total. However, it will up to each school to evaluate their own requirement and agree a contract with ESPO.
Further information and questions can be directed to ESPO - energy@espo.org