Energy Update
Market update
This time last year Europe was in the middle of an energy crisis. The conflict between Russia and Ukraine had led to a severe reduction in the supply of gas to the continent. As a result, wholesale prices increased by around 300% and there were preparations for energy shortages. However, as energy users looked for ways to reduce consumption, a milder than normal winter resulted in decrease in energy demand, meaning wholesale market prices started to ease.
With Europe having sourced alternative supplies of gas, we enter autumn with record amounts of gas in storage and are better prepared for the winter period. Many commentators on the energy markets have warned that despite falls in wholesale prices this year, costs remain significantly higher than in 2021. As we head into winter, if we have extended spells of cold temperatures and low wind generation, the gas in storage will quickly deplete. This uncertainty is keeping prices relatively high and is why energy suppliers need to hedge against the risk of adverse price movements by securing energy in advance. These actions reduce the impact of extreme price rises, but also mean on occasions that rates on bills do not fall with prevailing wholesale markets. As things stand, we can therefore expect energy bills to remain high, but if we get through this winter without extreme weather conditions and no further supply side shocks, energy costs could be lower by this time next year.
Electricity (191) renewal reminder
In July, we communicated that entry into Year 1 of the electricity flexible basket was still open and many of you renewed. We are now closing entry, but you still have an option of having a fixed price for Year 1 and then moving into the flexible basket from Year 2.
Taking no action to the renewal and waiting to see what the markets will do is a risky strategy; even if you are unsure what course of action to take, we advise that you keep communication open as we can provide insights into the market to help you to make any decisions.
If you require support or have any questions, please get in touch at r.reid@espo.org
New price for Electricity (191)
From 1 October 2023 your new electricity prices will start, therefore around 30 September 2023 please provide an actual meter read to TotalEnergies to ensure you are billed the correct usage at the correct rates. You will receive details of your new prices by the end of October in time for when you receive your bill in November.
Liquified Petroleum Gas & Other Liquified Fuels (92) framework extension
We are pleased to confirm that Liquified Petroleum Gas & Other Liquified Fuels (92) is to be extended from 22 October 2023 to 21 October 2025.
The framework provides customers with a compliant and competitive route to purchase LPG, in either cylinder form or by bulk delivery into holding tanks.
Customers will continue to be able to award supply contracts either by direct award or via further competition.
Energy Performance of Building Services (343) framework renewal
Work is underway to renew Energy Performance of Building Services (343). The current framework expires on 20 July 2024 and a new framework to replace this will be established and available for customers to utilise by this date.
The framework is approved by the DfE and can help education customers to make informed decisions regarding energy usage and efficiency measures.
Find out more about the framework here
Water, Wastewater and Ancillary Services (1008) framework renewal
Water, Wastewater and Ancillary Services (1008) has been retendered and Wave have been successfully awarded the contract from 26 October 2024 to 25 October 2028. This framework is a collaboration with YPO and West Mercia.
We are pleased to continue working with Wave and our existing customers will be able to renew and continue using them as a supplier. This framework is very much about service and supporting customers with their portfolio and taking a proactive approach to water management.
Industry change to unmetered supplies
An Unmetered Supply (UMS) is any electronic equipment that draws a current and is connected to the distribution network without a meter recording its energy consumption.
From October 2023, there is an industry modification that will require all new UMS connections to be settled Half Hourly (HH). Also, there will be a period of mandatory Change of Measurement Class (CoMC) activity for all Non-Half Hourly (NHH) Unmetered Supplies. TotalEnergies will begin a data cleanse exercise ahead of these changes. However, they are no longer able to accept new NHH UMS certificates, so please ensure all newly installed UMS supplies are Half Hourly (HH) to avoid delays.
We will contact those customers directly impacted by this change in due course, but should you have any questions in the meantime please get in touch.
Smart meters
AMR or smart metering is being rolled out across the energy industry in both our homes and businesses. This will ensure that energy is settled as fair as possible in the marketplace with suppliers being able to purchase energy only for what they need.
If you are interested in beginning an AMR project, please contact us with details to arrange engineer access for your site. We will then pass this onto the AMR team at TotalEnergies who can make arrangements to move forward.
AMR metering will largely avoid estimated billing and large unforeseen catch-up bills.
Electricity price notification timelines
For our flexible basket electricity customers, from 1 October your new prices will be applied. This will be in place for the next 12 months. Our team will receive the final pricing from TotalEnergies at the beginning of October and will then spend the next couple of weeks validating the data ensuring prices are setup correctly. Once this process is complete, the team can start creating the files for communicating the price notifications. We expect to have these to you by the end of October.
We understand that this is critical information for your organisation and appreciate your patience whilst we go through the process.
Transition from 2G communications
The world is moving away from 2G communications as the network becomes outdated, expensive to maintain and is occupying bandwidth that could be used for 4G and 5G services. The types of 2G that will be affected are 2G Circuit Switched Data (CSD) or GSM and 2G IP data (GPRS or 2.5G).
Planned changes in the UK
UK Mobile Network Operators (MNOs) plan to have all 2G services discontinued by 2033 at the latest, potentially much sooner. We have been slower than other countries due to our use in machine-to-machine devices, but changes will soon begin to be implemented.
BT Openreach are also replacing traditional copper PSTN lines, providing advantages for fast data transmission, expected to be completed in 2025.
What does this mean for you?
Simply put, your meter modem will need to be replaced and, in some cases, your meter too. If this is something that will affect you, further communications will be released in due course.
DfE-approved frameworks
We’re pleased to say that ESPO’s range of Department for Education (DfE) approved frameworks has expanded and now covers multiple energy frameworks including Electricity (191), Mains Gas (192), Renewable Energy Solutions (2838) and Liquid fuels (301).
The DfE offers approved frameworks as a service to help school buying professionals source goods, get value for money and comply with relevant procurement regulations. Our own frameworks are designed with the same goals in mind; we are thrilled that this is being recognised on an increasing number of our frameworks. Find out more here
Energy microsite
The last few months have been hugely unsettling for the energy market, leaving many feeling overwhelmed by the procurement process. It can be daunting thinking about where to start, who to trust and how to make the most of your money.
Our new energy hub is a central information point to make things clear, simple and efficient for you. Read up on everything from our buying techniques and energy supplier to our frameworks and extra services. Find out more here
