Management Information Sheet
New ESPO Electricity Framework 2024-2028
If your school is already on the ESPO electricity framework you should've already been notified by ESPO that there is a new framework for 2024 to 2028. Whilst 2024 seems a long way away it is crucial that your school responds to the request before the deadline in January 2023.
The reason why it is so far in advance is because of the unique way ESPO purchases electricity and gas. In short, they make their fuel purchases in the 18 months prior to the commencement of the contract year, thereby allowing them to purchase the energy requirement when wholesale prices are low and holding off purchasing when the prices are high. Whilst this last year have proven to be a difficult trading year, the way ESPO purchases electricity have meant that schools, as well as the corporate sites, have managed to enjoy extremely low prices in comparison to others. However, it is anticipated that the prices will increase dramatically from 1st October and are likely to be roughly in line with the energy relief scheme which caps the cost of electricity for 6 months from 1 October. This indicates that despite tough conditions, ESPO have managed to keep prices relatively low. Following sign off, ESPO will start to procure electricity for sites in 2023, in advance of the new framework start date of 1 October 2024.
Therefore, it is strongly recommended that your school continues with the framework by following the link on the email from Andrew Stanford from ESPO (emailed via dse@eumail.docusign.net and labelled as "Andrew Stanford via DocuSign") onto the DocuSign website and the document signed electronically. Please feel free to ignore the red guidance text on pages 6 and 7 in the document or update accordingly to suit your own GDPR and data retention policies. In previous years this has been emailed out to schools via the energy@espo.org email address.
Failure to agree a contract with ESPO or any other provider will lead to extremely high rates which could be of a magnitude 3 to 4 times higher than those on a contract.
If your school is not currently on the ESPO framework and wish to join or if you require further information, please contact energy@espo.org or Rowena Reid at ESPO on 07747 868021.
The original email text from ESPO is below.
RETURN DEADLINE 31 January 2023We are pleased to announce that we have awarded our new Electricity framework, running from October 2024 to September 2028, to Total Energies Gas & Power who have been successful following a UK compliant tender process. We would like to take this opportunity to thank you for using the current electricity framework. Whilst the last few years have seen some of the most challenging market conditions in the last twenty years, the ESPO's low risk Energy trading strategy and the expertise of our in house team have provided you with considerably below the market average prices and we will continue to make prudent purchases on your behalf until the end of your current agreement with us. Your current agreement with ESPO expires on 30 September 2024, however, to ensure the best prices you will need to renew your contract as soon as possible to allow effective trading of your future electricity volumes. We very much appreciate your business and hope that you will once again trust ESPO to manage your electricity requirements. To make this as simple as possible for you, we attach your new Procurement Service Agreement, Call-Off Contract and Links to the relevant terms and conditions for you to review. What do I need to do next?
You are not alone, many of our customers are not sure what to do, our team of experts are on hand to talk through options that are best for your organisation and answer any questions. Call Rowena Reid on 07747 868021 or email energy@espo.org. We are happy to provide supporting information for governors, boards and panels as we understand that in this volatile market more and more questions are being asked about energy supplies. If we do not hear from you we will be unable to include your supplies in year 1 of the new 2024 Framework trading basket and we may only be able to offer you a fixed price contract which could be more expensive than our flexible strategy. As a reminder it will be your responsibility to ensure any future procurement exercise adheres to EU/UK Procurement Regulations when seeking an alternative supplier. If you take no action, your agreement will continue on a fixed price for the 12 month period between October 2024 and 30 September 2025 and subsequent periods of 12 months thereafter until such point that you advise us that you wish to seek alternative supplies. Why now?Although your current contract doesn't end until 30th September 2024, ESPO will commence purchasing electricity for the 2024/2025 period from early 2024. Our in-house traders purchase up to 18 months of supply period and so we need to know if we are to include your volume in these purchases to enable you to continue to benefit from being part of a large volume. Customers who fail to renew by 31 January 2023 will not be included in the prime basket and as a result may be subjected to higher prices. We very much hope that you will continue use our framework, if you have any further questions or require clarification please do not hesitate to contact me or our energy team at ESPO by emailing energy@espo.org We look forward to hearing from you. |