Energy Procurement for Multi-Academy Trusts
On 1 October 2026 the Academy Trust Handbook began requiring trusts to use the DfE Energy for Schools service or a DfE approved deal when energy contracts renew, unless an alternative agreement of equivalent value for money has been sourced.
Most of what has been written about that sentence is already out of date. Much of the sector press reported it as “comparable pricing”. The Handbook says equivalent value for money, which is a broader test and a more sensible one.
It also means the question for your trust is not whether you are allowed to buy energy elsewhere. You are. The question is what evidence you hold when someone asks why.
We run tenders that produce that evidence as a matter of course, and we hand it to you.
Paragraph 2.29, in full
It is short enough to quote rather than paraphrase, and worth reading in the original because the paraphrases differ:
“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 of equivalent value for money has been sourced. This will apply when your energy contracts are renewed.”
The approved deals are DfE Energy for Schools, LASER, West Mercia Energy, ESPO, YPO and NEPO. Choose one of those and the value for money question is treated as settled. Choose anyone else, including us, and the trust carries the burden of showing the arrangement stands comparison.
That burden is a paperwork problem, not a legal obstacle. It is also entirely solvable, which is what the next section is about.
What the evidence actually needs to contain
Plenty has been written about what value for money ought to mean. Very little has been written about what you are supposed to put in the file. Here is what we think a trust should be able to produce, and what we give you after every tender:
- The suppliers invited to bid, and which of them responded
- The bids received during the auction
- The winning rate, and the rates it beat
- A comparison with the DfE approved deals, using the most recent rates available
- The non-price terms secured, including contract length and volume tolerance
- A short written statement of how the decision was reached and by whom
The fourth item is the one that matters most. Comparing your result against the approved deals is the direct answer to the question paragraph 2.29 asks.
The result is a document your finance committee can read in five minutes and your auditor can review.
Three questions worth asking before you join a DfE basket
The DfE scheme works well for a lot of trusts and we will tell you if yours is one of them. It removes the procurement workload entirely and it settles the Handbook question on its own. But it is a long commitment and it is worth going in with your eyes open.
How long am I tied in, and what notice do I give to leave?
Advisers to the academy sector report that leaving the V30 contract requires 30 months’ notice. The DfE does not publish contract terms on its own pages, so ask the team directly and get the answer in writing before you commit.
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What is the saving measured against?
The DfE has been reported as estimating that schools could save around 36 percent compared with market rates. Ask which market rates, on which date, and for what consumption profile. A percentage with no baseline is not a number you can budget from.
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Does a variable basket suit how we set budgets?
The basket smooths price movements rather than fixing them. If your trustees want a number in March that is still the number in October, a fixed contract does that and a basket does not.
If the answers work for your trust, join the scheme. Genuinely. It is the lowest effort route and we would rather tell you that than sell you a tender you do not need.
Built for estates, not single sites
Inherited contracts, brought into line
Schools that join a trust arrive with their own suppliers, their own end dates and their own inherited terms. We map what you actually hold, meter by meter, then bring the portfolio onto common renewal dates so you go to market once a year instead of nine times.
Budgets that survive contact with the autumn
We time renewals to your budget cycle rather than the supplier’s. The figure you give trustees in the spring should be the figure you pay in the autumn.
Bill validation across every meter
Suppliers get it wrong, and on a multi-site estate nobody notices. We check billed rates against agreed rates and actual consumption, and we pursue the corrections ourselves.
Contract management support
Queries, disputes and supplier chasing come to us instead of landing on a school business manager who has eleven other things to do.
Why a live auction produces better evidence than a quote
The traditional approach is to ask suppliers for a price one at a time and bring the client the best of what came back. It produces one number and no record. You are asked to take it on trust, and so is your auditor.
We put suppliers into the same session at the same time. They can see they are being beaten and they bid again. Margins come down because they have to.
The procurement advantage is obvious. The compliance advantage is the part trusts miss: a competitive session produces a record of the market on the day you bought. That is the evidence, and it is produced automatically rather than reconstructed afterwards.
The initial auction day
This auction acts as a price discovery event, providing the following benefits:
- Gives you an accurate renewal cost for your new budget.
- Enables you to assess any “green” premiums by comparing the "cheapest" price against the "cheapest cleanest price".
- Enables you to start developing the procurement case for your governors or committee.
- Enables Mindful Energy to iron out any data/portfolio discrepancies ahead of time.
- We produce a formal tender report pack to provide quantifiable evidence of the tender results.
The final auction day
- Your signatories will have had time to prepare ahead of signing the final contracts.
- A final decision is subject to market conditions and a favourable buying environment.
- We index link the market prices to ensure supplier margins remain consistent with the Initial Auction Day pricing.
- We produce a final formal tender report pack to provide quantifiable evidence of the tender results.
Why Schools Choose Mindful Energy
We’re based in Hemel Hempstead, and work face-to-face with trusts across England, not a call centre several counties or countries away.
- Genuinely independent. We’re not tied to any supplier. Our job is to get the right outcome for your trust, full stop.
- Ongoing support. Your dedicated account manager will provide ongoing contract management support and supplier liaison services.
- Transparent about our fees. We tell you exactly how we’re paid, in writing, before you commit to anything. See how our fees work here.
- We’re a member of the Energy Ombudsman’s Alternative Dispute Resolution scheme, so you have an independent route if anything ever goes wrong.
Frequently asked questions
Can a trust use a broker under the Academy Trust Handbook?
Yes. Paragraph 2.29 requires a DfE deal unless an alternative of equivalent value for money has been sourced. The obligation is to evidence the decision, not to avoid the open market.
Is it “comparable pricing” or “value for money”?
The Handbook says equivalent value for money. Several sector reports still quote an earlier phrasing about comparable pricing. The published wording is the one that counts, and it lets you weigh service and control alongside unit rate.
Do you work with trusts outside Hertfordshire?
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Yes. We are based in Hemel Hempstead and work with trusts across England. |
Can you handle schools joining the trust mid-contract?
Yes. Aligning inherited end dates across a growing trust is most of what we do for multi-site clients, as well as removing schools that are no longer part of your organisation.
How are energy brokers paid?
Usually through a commission built into the unit rate or standing charge. Our fees are declared up front to you in our Letter of Authority or Service Level Agreement.
What will our auditor want to see?
A record of who was invited, what they bid, what won, how it compared with the DfE approved deals, and who decided. Our tender produces all of that and we hand it to you.
A free review of your trust’s energy position
Most trusts want to talk before they share anything, which is fair enough. Book a short call and we will talk through where your contracts sit, what your renewal looks like, and whether there is anything worth doing. No documents needed, and no obligation at the end of it.
Please click the link below or contact us on 01442 504049 or connect@mindfulenergy.co.uk.
References available on request
We do not publish testimonials or quotes attributed to named individuals. Our competitors read this page too, and the people who trust us with their data are entitled to expect we will not trade on it.
We will be happy to provide named references to speak to directly at the appropriate time for organisations such as 5 Dimensions Trust, Ivy Learning Trust and Riviera Education Trust.