Academy Trust Handbook 2026: Important update on energy procurement

Updated: September 2026

The Department for Education (DfE) has published the Academy Trust Handbook 2026, with the new requirements coming into effect from 1 October 2026.

One area that has attracted particular attention from Academy Trusts and the education sector is the updated guidance around energy procurement.

Following concerns raised by the sector about the original wording, the latest version provides greater clarity around when Trusts can consider an alternative energy procurement arrangement.

What has changed?

Under the 2026 Academy Trust Handbook, Academy Trusts must use the DfE Energy for Schools service or a DfE-approved energy deal unless they have sourced an alternative agreement that provides “equivalent value for money.”

This wording is important.

Rather than focusing solely on whether an alternative arrangement can demonstrate an equivalent energy price, the updated wording refers to equivalent value for money.

For Academy Trusts, that means considering the wider value delivered by an energy procurement arrangement alongside the price itself.

Zenergi welcomes the clarification

Zenergi has been engaging with the DfE on the wording and implications of the energy procurement requirements.

David added: “We believe Academy Trusts should be able to make informed procurement decisions that consider the complete value of an energy arrangement, while maintaining robust governance and demonstrating value for money.

“Energy procurement is about much more than the headline unit price. The right arrangement can also provide access to market expertise, purchasing strategy, data and reporting, invoice management, compliance support and wider energy and carbon services. We welcome the opportunity for these factors to be properly considered as part of the procurement process.”

What does “equivalent value for money” mean?

The updated wording gives Trusts an opportunity to consider the overall value of an energy procurement arrangement.

This could include:

• The competitiveness of energy pricing
• Purchasing strategy and access to energy markets
• Contract structure and risk management
• Account management and customer support
• Invoice validation and bill management
• Consumption monitoring and data analysis
• Energy efficiency support
• Compliance and regulatory expertise
• Carbon reporting and net zero support
• The wider services and expertise available to the Trust

The right factors to consider will depend on each Trust’s circumstances, priorities and estate.

Importantly, this does not mean that Trusts can simply choose any alternative energy contract. Procurement requirements and the principles of transparency and value for money still apply.