Lewisham Council will centralise its utility bill payments for schools – billed to bring an estimated £40,000 worth of savings if all schools opt in.

Schools will be able to join to the scheme after the Lewisham Schools Forum agreed to change to centralised, consolidated payments.

Currently, schools pay their invoices independently.

This has led to billing problems and disputes around “perceptions of debt”, a council officer told the forum.

“In the last few years there have been billing problems associated with suppliers implementing new software,” according to council documents.

“This has resulted in disputes on invoicing that has led to a perception of debt by suppliers. Where this perception exists suppliers are able to impose late payment charges.”

The officer said the new system – which is part of a London-wide public sector procurement initiative – would streamline the payments, and would be easier for schools.

“It will streamline the administration from the schools’ perspective and will allow us to negotiate better payment terms with the suppliers with four per cent reduction in energy cost component with the bills,” he said.

The total estimated potential saving across the schools’ portfolio for gas and electricity supplies is £40,000.

The average saving is £470 but varies according to consumption, with nine schools registering a reduction of under £100, according to the documents.

“This is based on existing prices and what we know of the terms we would be able to negotiate,” the council officer told the forum.

Schools who do not want to join the payment model will make their own arrangements for utility supplies, the council officer said.