YPO latest newsletter for Electricity (Power) on behalf of BMDC

Please see below the latest newsletter from the YPO on Power pricing and market conditions

Power Basket Trading & Performance

April 2027 – 2031 Renewals:
The current npower contract has now been extended to cover the period 2027 to 2031. To enable YPO to purchase volume from 1^st of April 2027 for you, we need you to renew as soon as possible.  Until you have signed the supplier contract we are unable to purchase volume specifically for you. In this volatile market it is urgent we secure volume to mitigate as much risk exposure as possible.  YPO have taken the decision to support customers by underwriting some hedged volume for Summer and Winter 2027 and 2028. This volume will be allocated on a first come basis once a signed contract has been received.

 The YPO energy team have been contacting customers over the last couple of months to talk through options and understand your requirements.  We are able to provide supporting documentation for internal reporting as and when required.

 If you have not yet had a chat and would like to speak to Steve or Jack please email  [email protected] and they will arrange a call

Volume underwritten by YPO

April 2027/2028:
As of 24^th August 2026, YPO have started to trade a small % of volume for 2027/28. This volume has been purchased before renewals are confirmed and is the liability of YPO. A decision was made to purchase this volume with a view of trying to protect future prices for the basket as much as possible for customers going forward that decide to renew.
The current weighted average price is currently 8.85p/kwh .

April 2028/2029
YPO have now also taken the same approach with 28/29 volume and started to purchase a small % of volume before renewals are confirmed and this is the liability of YPO. We have taken advantage of lower prices further out. The current weighted average price is 7.04p/kwh.

Current basket -April 2026/2027:

Overview:

The achieved commodity price on the Annual Baseload position under the current Apr-26 basket is 7.77p/kwh. (This is a 10% decrease from the previous Apr-25 achieved price of 8.58p/kwh).
Please Note: The non commodity element of the bill is added separately on top. Please refer to your billing rates provided by Npower for further information on the non commodity costs.

Graph 1 – Hedged Position (24-Month Overview)

(The amount of volume purchased during contract term is highlighted in red, with the blue representing open position to purchase against the open wholesale power market)

The forward Apr-26 contract overview demonstrated below provides an estimated commodity forecast within our forward Apr-26 contract. The basket forecast provides an average annual hedged position, alongside the current commodity weighted average price in p/kwh, with an overall % change from the previous year.

Note: These figures are based on our fixed versus open positions as of: 24^th August 2026.

Overview:

(Sum-26 purchased 100% versus 100% of Win-26)

As we are 100% hedged for power out until the current framework end date of 31/03/2027, our risk management and trading strategy has helped to protect against sharp rising markets following the escalations in conflict in and around Iran.

April 2027/2028:
As of 24^th August 2026, we have started to purchase a small % of volume for 2027/28. This volume has been purchased before renewals are confirmed and is the liability of YPO. A decision was made to purchase this volume with a view of trying to protect future prices for the basket as much as possible for customers going forward that decide to renew.
The weighted average price is currently 8.85p/kwh. (Commodity only)
 

Renewals:
The renewal process for the electricity framework beyond March 2027 is now underway. In order to continue trading activity, we first need to confirm customer volumes.
If you have not yet confirmed your intention to renew, please contact [email protected] with the relevant signatory details. An agency agreement will then be issued.
If you would like to discuss any aspects of the renewal in more detail, please let us know and a call can be arranged.

Additional non commodity charges:
A breakdown of non commodity costs can be found following the below link:
Understanding non-commodity costs | YPO

Following the YPO/ Npower Customer session we have received some further updates on the expected non commodity charges increases.
As Government are working on trying to get sources of electricity 95% clean by 2030, there is substanstial investment being made into networks and this has a knock on affect with TUos (Transmission) charges increasing.
There is also the introduction of a new Nuclear RAB charge.

Further to the above increases, there will also be an increase in Climate Change Levy (CCL)
Further information can be found below:
Climate Change Levy rates - GOV.UK

Billing rates are expected to be issued to customers by Npower imminently.

Market Wide Half Hourly Settlement:

The below link provides further information ahead of the upcoming market wide half hourly settlement changes:
Market-Wide Half-Hourly Settlement (MHHS) Reform

Npower have advised there will be some changes to billing following the MHHS changes. Going forward your bills will show a split of pre and post MHHS sections for each account.

If you have any questions please contact your Npower CRM exec or [email protected]

Future outlook:

The current conflict is mainly having a significant impact on immediate prices,  YPO have volume purchased to cover customers up to 31^st March 2027 with a weighted average price of 7.77p/kwh (Commodity only) from 1st of April this year.  As soon as we start getting renewals confirmed we will be able to start purchasing volume further out.

Npower Portal:

We would encourage customers to check the My Energy Coach portal to review summer consumption and check this is in line with expectations.
If any customers don’t already have a login for My Energy Coach, please email [email protected] to be set up.

Reduce your schools’ energy use during summer:

Explore our practical steps to help manage energy costs and prepare for the new school year.

Reduce your schools energy use during summer | YPO

Social Value
Water:
Social Value delivered through the YPO Framework Agreement 1181 is well within your reach. Our supplier, Wave, operates the Big Blue Eco Scheme, which allows schools within eligible wholesaler regions to request a FREE site visit from a qualified plumber.

During the visit, the plumber will carry out a full site survey and provide a report identifying any water inefficiencies—such as leaks—and recommending opportunities for improvement. On the day of the visit, you can also benefit from the free installation of up to 28 water-saving retrofit devices, including tap aerators, toilet displacement bags, and inline shower restrictors.

Don't miss out on this opportunity and register today:

https://www.wave-utilities.co.uk/big-blue-eco-booster 

As a valued Wave customer do you know that there are a wealth of resources and materials that are available to you via their dedicated Public Sector resources page - Resources the Quarterly Newsletter | Wave. Resources available to you range from useful hints, tips and posters relating to water efficiency, links to wholesaler freebies as well as a range of training resources and personal/professional wellbeing support. Please take some time to familiarise yourself with this page and if you have any questions, please feel free to reach out to Wave via their business support team mailbox:-  [email protected]

YPO customers can access a range of free educational resources provided by Wave via their dedicated schools webpage: Schools | Wave

The resources are designed to support both careers education and sustainability learning in schools. Customers can access a series of careers videos, where Wave employees explain their roles and the key Skills Builder skills required in their jobs. For primary schools, five employees share insights into their careers, while for secondary schools, Wave’s Head of Finance discusses her role, the skills needed for a career in finance, and offers advice on preparing for the world of work.

In addition, customers can download a variety of free classroom resources, including:

• A CV writing guide
• A sustainability challenge sheet
• Primary school activities
• A water cycle infographic

All resources are available free of charge and can be accessed directly through Wave’s schools webpage: https://www.wave-utilities.co.uk/schools.

YPO/ ElevationX:

Npower Business Solutions has partnered with Elevation X to deliver a STEM education programme called “Power to Drive” in 2026.

The programme targets Year 5–6 students, using hands-on workshops where pupils build and test mini electric cars to learn about electricity, energy use, voltage, and sustainability.

 Workshops are free, last 40 minutes–2 hours, and are available to schools buying energy through YPO.

The initiative supports YPO’s goals around education, sustainability, community engagement, and added value for member schools.
To apply for a workshop please email [email protected]

Planned procurements:

Supply of Electricity and Ancillary Services

YPO’s current Supply of Electricity and Ancillary Services Framework Agreement (1100) is due to expire on 31 March 2031. However, in line with our Risk Management Policy and three-year rolling trading strategy, YPO has already begun the re-procurement process. A Prior Market Engagement (PME) notice was issued on 11th May to initiate early engagement with the market.

A crucial part of this engagement involves input from our customers. If you would like to share your feedback and help shape the next iteration of the Electricity Framework Agreement, please complete the survey using the link provided or simply scan the QR code.

YPO Electricity Framework 2031 Customer Engagement Survey – Collaboration

Water, Wastewater and Ancillary Services

YPO is currently in the research phase for the re-procurement of the next iteration of the Water, Wastewater and Ancillary Services framework under PA23. We would really value your feedback and insights as part of this process. If you’d like to share your thoughts or get involved in the conversation, please contact us at [email protected].

Other Framework Solutions:

At YPO we will always be on hand to fuel your energy journey, simply get in touch via [email protected].

Water, Wastewater and Ancillary Services - 1181

This framework provides a compliant route to market for the procurement of water, wastewater, and ancillary services for all public sector bodies. It is a YPO – led collaboration in partnership with ESPO and West Mercia Energy. We can support you in reducing your water consumption, making your usage more efficient and supply more

resilient. You will be given your own dedicated account manager to ensure one single point of contact throughout to help you monitor and stay on top of your usage.

Water, Wastewater and Ancillary Services Procurement | YPO

The current solution is due to expire on 31 August 2027, and YPO is currently developing a new iteration of the Water Framework Agreement to ensure continuity of service provision. In the meantime, all existing customers, including WM and ESPO customers, can continue to access Framework 1181 and benefit from its terms and pricing.

For customers whose contracts expire in early 2027, a new call-off order can be placed with Wave up to 31 August 2027. Alternatively, if you would like additional time to undertake benchmarking exercises and complete any internal compliance requirements, a 1-year contract could be considered.

If your current contract already contains extension provisions, these can be exercised simply by notifying Wave of your intention to extend.

YPO will notify all customers once the new Water Framework Agreement is available. We will also share details of the procurement outcome, including the benefits and value achieved through the tender process.

The Supply of Renewable Biomass & Related Services – DPS 1080

A dynamic purchasing system (DPS) for the bulk supply of renewable biomass products such as biomass wood pellets and biomass wood chips. Each product will be to a particular specification, as required and set by the customer.

Renewable Biomass Procurement | YPO

YPO has a comprehensive range of energy supply contracts awarded through a competitive tender process, meaning you can come direct to us and be sure your new electricity, gas, water and biomass services are fully compliant with all public sector procurement regulations. We know that securing energy contracts can be a complex and difficult process, but we are here to help you. We offer a range of contract types and lengths that offer great value.

For further updates and articles - Explore our Monthly Energy Insights page for the latest news and updates impacting global energy: Public Sector Energy Procurement | YPO