The government has confirmed its plans to help schools and other non-domestic energy users with their energy bills this autumn. Ministers to reduce rates to a “government-supported price” of 拢211 per megawatt hour for electricity and 拢75 for gas will equate to a saving of 拢4,000 for a school paying 拢10,000 a month for energy. For comparison, the government said wholesale costs this winter are expected to be around 拢600 per megawatt hour for electricity and 拢180 for gas. School leaders had warned they faced “apocalyptic” bill hikes of as much as 500 per cent. The Department for Business, Energy and Industrial Strategy said it would compensate energy suppliers for the reduction, which will initially apply to energy use between October 1 2022 and March 31 2023. Truss Prime minister Liz Truss said she understood the “huge pressure businesses, charities and public sector organisations are facing with their energy bills, which is why we are taking immediate action to support them over the winter and protect jobs and livelihoods”. The discounts will apply to business and public sector organisations on existing fixed price contracts agreed on or after April 1. They will also apply to those signing new fixed-price contracts, those on “deemed” or out of contract or variable tariffs, and those on flexible purchase or similar contracts. For fixed contracts, the discount will reflect the difference between the government’s price and the “relevant” wholesale price for the day the contract was agreed. For variable, deemed and other contracts, the discount will reflect the difference between the government’s price and wholesale price, but will be subject to a “maximum discount”. BEIS said the amount of this maximum discount was “likely to be around 拢405/MWh for electricity and 拢115/MWh for gas, subject to wholesale market developments”. Schools could save 40% on energy bills, says BEIS The government said a school using 10 megawatt hours of electricity and 22 megawatt hours of gas a month would currently pay around 拢10,000 a month. Because prices were higher than the government-set rates announced today when they signed their contract, they would receive support. The difference between the two rates would be worth 拢240 per megawatt hour for electricity and 拢70 for gas, leading to a reduction in their monthly bill of 拢4,000, or 40 per cent. The support will be “automatically applied to all eligible bills”, and schools “do not need to take action or apply to the scheme”. Savings for energy used in October will be seen in October bills, which would usually be received in November. Those who signed new contracts before April 1 “would not have been exposed to the recent rises in wholesale prices, so you will not be eligible for support under the scheme”. More certainty needed, leaders warn Barton Geoff Barton, general secretary of the ASCL school leaders鈥� union, welcomed the details of the scheme, but warned the 鈥済laring problem is the fact that the scheme is time-limited to six months鈥�. The government has said it will review the scheme in three months before making a decision about support beyond March 2023. 鈥淭his uncertainty makes it impossible for schools and colleges to plan financially with any degree of confidence because they could be knocked off course at a later date by steep rises to energy bills if government support drops off. 鈥淪chool and college budgets are incredibly tight and any financial ill-wind is potentially devastating. We will be pressing the government for a firmer commitment to the sector.鈥� Leora Cruddas, chief executive of the Confederation of School Trusts, said support was 鈥渄esperately needed鈥�, but warned a six-month relief scheme 鈥渃reates its own set of difficulties鈥�. 鈥淪chools and trusts need budget security over the whole financial year.鈥� And Paul Whiteman, from school leaders’ union NAHT, said he had “real concerns that this just doesn鈥檛 go far enough”, pointing out those who signed larger contracts before April will “slip through the cracks”. 鈥淓ven with this cap many schools will still find they are left facing much higher bills than budgeted for, which will necessitate extensive cuts to their educational offer. “In a truly desperate situation, this plan is better than nothing, but unfortunately it doesn鈥檛 get close to solving the current funding crisis in schools.”