Energy procurement for schools: DfE guidance explained

For many schools and Trusts, the revised wording on energy procurement in the Academy Trust Handbook is ambiguous and raises an important question: what is the most effective way to remain compliant while also securing best value for money?

The updated guidance states: “2.29. Trusts must use the DfE Energy for Schools service or a DfE approved Energy deal as shown under Energy on Get Help Buying for Schools unless an alternative agreement with comparable pricing has been sourced. This will apply when your energy contracts are renewed.”

At first glance, the inclusion of ‘must’  appears to limit your options. However, closer examination of the guidance allows for flexibility.

Do schools have to use Energy for Schools?

While the revised guidance confirms the DfE’s preferred route, it does not remove alternative options. Indeed, even the DfE state that the Energy for Schools (EfS) contract may not represent best value for money for all schools. Notably the DfE are currently not allowing private companies to apply to become approved partners, although we know that schools like yours left Public Buying Organisations (PBOs) to gain more control, more competitive pricing and greater support services. The good news for you is that the key phrase remains “…unless an alternative agreement with comparable pricing has been sourced.” This allows schools and Trusts to continue using alternative procurement arrangements where they can evidence that pricing is comparable to the DfE option and represents good value for money.

This interpretation was reinforced in correspondence sent by the DfE to the Energy Consultants Association (ECA) on 21 July 2026: “Schools and trusts remain free to pursue alternative procurement arrangements, including those facilitated by energy brokers, where they consider this to represent the best option for their circumstances. In such cases, we require schools to ensure that they are able to demonstrate a clear rationale and appropriate value for money.”

The emphasis, therefore, is less about mandating a single procurement route and more about ensuring that decisions are supported by evidence, due diligence and responsible stewardship of public funds.

How can we help you prove “Value for money”

While it can be tempting to focus solely on energy unit rates, value for money is about much more than securing the lowest price. That said, at Zenergi we are validating invoices for a client using the DfE contract where electricity prices were found to be 13% higher than those of comparable schools on fixed-price contracts we procured during the same billing period.

While individual examples should not be viewed as definitive market comparisons, they demonstrate why schools should carefully assess their own circumstances, requirements and risk appetite. A robust response to auditors is likely to be supported by clear documentation, competitive market engagement and a well-defined rationale that can withstand scrutiny. All of which we can provide.

However, for many organisations, the true cost of energy management extends beyond procurement itself.

The challenge of comparing energy prices: Looking beyond procurement

Demonstrating “comparable pricing” is not straightforward and we understand the DfE are not providing the necessary pricing information to help you make an informed decision before signing up for the EfS contract, which further complicates the issue.

To overcome this we will help you build the specification of services you require. We have developed a proforma prepopulated with typical requirements of schools and Trusts which can be tailored to your unique specification. We can provide Zenergi’s responses to your specification, and you can request the DfE and others to provide theirs. Our simple scoring mechanism will help deduce the best overall value being offered.

The specification can include the following services:

• Bill validation, query management and cost recovery
• Supplier management and dispute resolution
• Budgeting and forecasting support
• Consumption monitoring and reporting
• Metering and capacity management
• Support with industry changes, such as Market-wide Half-Hourly Settlement
• Carbon reduction planning
• Renewable energy guidance
• Sustainability and decarbonisation support
• Dedicated account management

Remember, billing errors and supplier issues remain common across the sector and can take considerable time to resolve. Having expert support in place can identify issues more quickly, recover costs where appropriate and free up valuable internal resources.

Zenergi is an approved partner of ISBL and ASCL, and supports more than 3,000 schools and Trusts with energy procurement and ongoing energy management services, including bill validation, compliance support and energy efficiency initiatives. With over 20 years of experience, Zenergi has a proven track record of helping schools reduce energy costs and safeguard budgets. Robust procurement practices are supported by a pre-approved panel of more than 20 suppliers, all vetted against stringent criteria to help ensure value for money, service quality and reliable customer support.