Power Charges - Information and Hints for Savings and Contracts

Introduction

The following information explains what schools can do to conserve power and what they should do if they consider their current Heat, Light and Water allocation insufficient to meet their reasonable needs.

Who is affected?

All schools have a responsibility to manage their electricity usage, especially during the winter months. A few large schools who have been placed on spot market rates may have noticed a sudden and large increase in their power charges.

Heat, Light and Water Allocation

Heat, Light and Water funding is a component of each school's operational funding which is provided for the supply and consumption of fuel and water.

This funding component is individually assessed for each school to address their reasonable needs.

Heat, light and water allocations are automatically recalculated annually once data from boards' annual financial accounts becomes available.

In determining a school's reasonable needs the Ministry uses the greater of:

• the school's latest four years' heat, light and water expenditure, ignoring the highest and lowest values and averaging the remaining two
• the average of the latest three years' heat, light and water expenditure.

Using this calculation increases to the schools' current year's heat, light and water allocation will be made in the October instalment of operational funding.

If the recalculation results in a decrease this will be effective only from the beginning of the following year and will be advised in the Provisional Operation Funding Notice.

What can my school do to lower power costs in the future?

With the current energy situation all schools can expect that power supply rates may increase. In order to keep power costs as low as possible, schools need to:

• Ensure that they are not using unnecessary electricity
• Conserve power where possible
• Be aware of all aspects of any contract they have entered into with their power supplier.

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Tips for energy conservation

Conduct an energy audit to see if there are savings possible within the school. Potential areas for savings are:

Switch Off

• Lighting in classrooms and offices at lunchtimes and at the end of school
• Lighting and appliances in staff and common rooms when not in use
• Lighting in well lit day areas
• Office equipment after school
• Appliances such as TVs and microwaves at the wall
• Vending machines at the end of the day (CHECK WITH YOUR VENDING MACHINE SUPPLIER FIRST)
• Electric fan heaters when not needed (remember areas not always in use eg dental clinics)

Ease Back

• Check time switches on electric heating to ensure buildings are only heated during school hours
• Ask school cleaners to only light the areas they are working in
• Avoid over-ventilating classrooms when heaters are on

Check Up

• Make sure the tips your school wants to use are being followed. Appoint energy monitors to check everything is switched off at the end of the day and during lunchtimes.

Boards of trustees should be putting good practices in place in their schools to ensure electricity is conserved where possible. Staff should be encouraged to discuss and identify ways to save power. Everyone has a role to play and ideas to offer.

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Your school's contract with its power supplier

Note: It is generally only large schools that have fixed term power supply contracts.

Where contracts have expired and no new arrangement has been put in place, it is likely that the supplier will charge at spot market rates until a new arrangement is negotiated.

Whether you have a current contract or you need to negotiate a new arrangement, your board of trustees should consider the following to help ensure your school gets a reasonable deal:

Power companies are required to give schools on a fixed term contract at least one month's notice of the contract's expiry date. This should lessen the potential for schools to be placed on the "spot market".

If my school is facing a cash-flow problem what can I do?

Boards facing a cash-flow problem can apply to the Ministry for an advance of their operational funding where significantly raised power charges are causing immediate financial difficulty.

If you wish to apply for an advance you need to write to the Ministry including evidence of the following with your letter:

• Previous power charges
• Spot market charges where these have been levied
• New rates for power charges

Further Information

Energy Efficiency and Conservation Authority (EECA) website has some useful tips.