Energy Update: March 2025

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Energy Update

ESPO Future Energy Forum

The Energy team at ESPO held their first energy event in January with speakers from across the industry. We covered topics such as the Market-Wide Half-Hourly update, the requirement to remove old Radio Teleswitch meters (RTS) and ESPO’s Water, Wastewater and Ancillary Services (1181) and Utility Metering and Data Services (512) frameworks

The event was a huge success with attendees giving the day an overall rating of 4 stars out of 5.

“It was very informative given the changes in the marketplace. Good presenters - very knowledgeable. Good location and venue. Good length of time - not too long.”

4.86

Average Rating

“What I liked most about the energy event was the opportunity to engage with industry experts and get advice on issues specifically relating to my school. Additionally, networking with other attendees provided valuable perspectives.”

The event wouldn’t have been possible without the support of our current energy provider - TotalEnergies, along with Wave - our water framework provider, and Siemens - our MOP framework provider. We also had SMS there to talk to us about the importance of exchanging those RTS meters. We’d like to thank all those that attended and gave such positive feedback on the event. We have a date in the diary for 2026 already with more information to follow on how you can book on.

Water, Wastewater and Ancillary Services framework (1181)

• Did you know your water bills are due to increase in April?

• Are you currently in a contract?

• Do you know who currently supplies your water?

• Did you know ESPO has a water framework with Wave?

ESPO can support with all these questions with our framework provider, Wave. We have been working with Wave for a number of years now to help you procure your water compliantly. Through our Framework 1181, we can provide you with a no-obligation quote for a fixed price before your bills increase in April.

For more information about this service, please email energy@espo.org or visit our website: Water, Wastewater and Ancillary Services

New procurement regulations!

The Procurement Act 2023 is now LIVE! The ESPO Energy team has completed all relevant training to ensure we are continuing to be compliant under these new regulations: The Procurement Act 2023 | ESPO’s Journey to the new Act.

Radio Tele Switch (RTS)

Radio Teleswitch meters are having their signal switched off in June, meaning the meters themselves will no longer function. Failure to arrange your meter exchange will mean that you could lose heating or hot water from June 2025

How does this affect your company?

This only affects a small number of our customers.

If you have an RTS meter, you will have received communication from ESPO/TotalEnergies with information on what steps to take and the affected meters.

Ofgem has released a useful video on how to tell if you have an RTS meter:

Replacing your Radio Teleswitch electricity meter | Ofgem

If you would like to discuss anything relating to this project, please contact Kate by email or phone: Email: k.maher@espo.org Phone: 0116 294 4015

Market update

Wholesale energy markets remained volatile throughout 2024, and this trend has continued through the first quarter of 2025.

Colder temperatures than last winter have increased heating demand at households and non-domestic sites. In addition, periods of low wind speeds have meant there have been times when generation from renewables has reduced, increasing the requirement for gas-powered generation.

Geopolitical tensions created uncertainty around energy supply routes in 2024. In the Middle East, cargoes of oil and liquified natural gas (LNG) were forced to take longer routes to avoid hostilities. At the end of 2024, an agreement to transit Russian gas to southern Europe via Ukraine ended, further reducing the supply of gas to the continent and pushing up prices.

The early months of 2025 has seen tensions in the Middle East easing with the agreement of a ceasefire between Israel and Hamas, talks about the future of Ukraine commencing and a new administration in place in America - some of which has helped to ease supply concerns. However, there remains considerable uncertainty around the future direction of energy prices, with gas in storage across Europe at lower levels compared to this time last year. The ESPO Energy team monitors market developments daily, and through our trading strategy, manage this market volatility on behalf of our customers.

In April, ESPO gas customers on flex pricing will receive updated rates for the period April 2025 to March 2026. Based on gas already secured and current market conditions, we expect rates for April 2025 to be lower than April 2024.

ESPO gas tender effective from April 2027

ESPO is currently in the process of tendering for a gas supplier for the new framework starting in 2027.

Once a supplier has been appointed, ESPO will be in contact with all gas customers to arrange renewal contracts onto the new framework.

Should you have any questions in the meantime, please contact: energy@espo.org

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