Like other schools across Wales, schools in Swansea have historically paid their energy bills by cheque.
Swansea schools are part of the Welsh Government Commercial Procurement utilities portfolio which purchases energy via the Crown Commercial Services Energy Framework. When the energy contract was renewed gas supplies needed to be transferred to a new supplier. Before the contract could be transferred Swansea Council had to identify and settle any outstanding errors and debts on the accounts. This task was resource intensive and caused significant delays.
Swansea Council identified that cheque payments were inefficient and open to billing errors. Additionally, delays in payments meant that significant debt was accruing on the accounts of individual schools delaying the transfer to the new contract and subsequent benefits from more competitive energy rates.
Once the accounts had all been cleared and transferred to the new gas supplier, and to avoid similar problems occurring in future, direct debits were set up for schools to pay their bills. The direct debits have removed inefficiency from the payment process and given schools improved payment terms saving money for the public purse.
Kelly Small, Head of Education Planning and Resources, Swansea Council said:
“Since we moved all schools in Swansea to a direct debit rather than cheque we have saved both time and money. This standard approach has given schools better control of their own finances; helped with reporting and accountability and meant that accounts are always up to date.”
Paul Griffiths, Head of commercial Delivery, Welsh Government, said:
“I’m delighted that by supporting Swansea Council to move towards a direct debit payment for schools the payment process has been streamlined, resources optimised and savings made.”
For more information please email: CommercialProcurement.Utilities@gov.wales