The DfE Update for Academies (18 March 2026) urges school leaders to reassess how they purchase energy. With very few competitive fixed-price deals currently available, the DfE is recommending a move to a longer-term variable-rate basket - in particular, the DfE Energy for Schools Service. 

Longer-term variable arrangements can smooth out market volatility while giving access to competitive public-sector pricing, providing greater stability for financial planning. If your contract expires within the next 12 months, now is the time to act.

How does the V30 contract work?

Schools joining Energy for Schools are placed on the DfE’s V30 energy contract, administered by the Crown Commercial Service (CCS) - the same contract used by government departments. CCS purchases energy in blocks up to 30 months before delivery, smoothing out price volatility and reducing exposure to sudden market spikes.

Schools continue to receive their own energy usage data and manage their own bills directly, while benefiting from the collective purchasing power of the national basket. Additional sites within a trust can be added to the DfE account at any time. Based on pilot data, the DfE estimates schools could save an average of 36% on their energy bills compared to what they would otherwise have paid. 

Other key benefits include:

  • protection from market volatility and unregulated brokers
  • reduced procurement workload
  • full compliance with public-sector procurement regulations.

Important: 30-month exit notice

The V30 contract requires a 30-month notice period to exit. This is a long-term commitment and trusts should factor this in before joining.

Eligibility and key deadline

All state-funded schools and trusts in England are eligible to join Energy for Schools. Individual schools and single academy trusts (SATs) can apply directly online. Multi-academy trusts (MATs) should register their interest and complete the process offline, with a member of the DfE team guiding them through. Individual sites within a MAT can be added to the DfE account at any point during the contract.

Key deadline

Apply by 12pm on Tuesday 15 September 2026 to join the next V30 basket, starting 1 April 2027. Depending on your current contract’s end date, you may be placed on an interim rate initially.

Key considerations when reviewing your contract

The DfE’s energy buying guidance and minimum standard questions provide a clear and practical framework for any trust approaching renewal. The key considerations are:

  • Start early. Switching supplier can take up to two months, with six weeks being the industry standard. Some contract options are only available 6-12 months before your current contract expires, so early planning is essential.
  • Never let your contract expire. If your contract ends without a replacement in place, your supplier will continue to supply energy at ‘deemed rates’ - a published tariff charge that is significantly more expensive than any contracted rate.
  • Compare quotes like-for-like. Include unit rates, standing charges, kVA charges, VAT, Climate Change Levy and any broker commission.
  • Use brokers carefully. Insist on full written disclosure of all fees, commission and rebates. Only grant a Letter of Authority for quotation purposes (maximum 12 months validity) - never to sign contracts on your behalf.
  • Ensure compliance. All energy procurement must comply with public-sector regulations and your trust’s internal approval process. Using a DfE-approved framework or the Energy for Schools service is one of the simplest ways to satisfy this requirement.

Supporting your Climate Action Plan

Renewable energy contracts can support your Climate Action Plan but don’t always offer best value. A variable-rate basket provides a stable cost base, helping trusts plan efficiency projects and forecast carbon reduction, even where the contract itself isn’t a green supply option.

Final thoughts

The March 2026 DfE update reinforces that energy procurement is now a strategic decision, not just a financial one. Schools cannot afford to let contracts lapse or to make renewal decisions without fully understanding the market. For trusts approaching renewal, exploring whether the V30 or a comparable risk-managed solution is the right fit should be the immediate next step.

Useful resources

For further information on how we can support your academy trust, please contact your usual UHY academy adviser.

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