Consider ending energy deals with Russian firms, heads told

Many schools and local authorities have contracts with Russian firm Gazprom
29th March 2022, 1:41pm

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Consider ending energy deals with Russian firms, heads told

https://www.tes.com/magazine/news/general/consider-ending-energy-deals-russian-firms-heads-told
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The Department for Education has warned headteachers to consider ending energy deals where their contractor is Russian or Belarusian.

In an email to school leaders today, the DfE has pointed to Cabinet Office guidance to public bodies, which states they should identify any contracts where the “prime contractor” is a Russian or Belarusian supplier and “consider terminating that contract”.

It says that this should be done following a “legally compliant process”.

The email also warns that leaders should only proceed to terminate a contract if an alternative supplier can be sourced “in line with value for money, affordability and with minimal disruption to public services”.

Leaders are also told to seek advice from an energy expert or a relevant public sector buying organisation before taking action to terminate an existing deal.

The warning comes just two days before a government service that helps schools switch energy suppliers is to close.

Crown Commercial Service’s (CCS) School Switch service allowed schools and academies to access energy supply quotations and switch suppliers, but the DfE has now said it will close on 31 March.

The service had been criticised by heads for including Russian state supplier Gazprom amongst the 11 firms it supplied quotes from.

Earlier this month, the Association of School and College Leaders urged the government to review the issue as a “matter of urgency” and remove Gazprom from the list.

Several local authorities and schools have contracts with Gazprom, and many have previously expressed plans to sever ties with the firm.

Earlier this month, Suffolk County Council said it would break away from its £10 million contract with the state-owned energy supplier.

Merton Council also said it was seeking to cancel its gas contract with energy supplier Gazprom in response to the atrocities being committed by the Russian state in Ukraine.

Ending an energy contract mid-way through a deal can result in high exit or severance fees.

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