We want to change how we buy communal energy so that we can give you better value.
Our energy contract for gas and electricity which we supply to you
(only relevant to residents with variable service charges - updated March 2026)
Why we are applying for the Section 20 Dispensation for Energy
To enter a contract of more than 12 months to allow us to buy energy and pass the costs onto residents, we would usually need to follow a consultation process set out in Section 20 of the Landlord & Tenant Act 1985.
This process usually takes several months and because energy suppliers are only able to ‘lock in’ the best available prices that they can offer for a very short time (usually one working day), we aren’t able to follow the usual consultation process. So instead, we’re making a second application to the Tribunal for a further Section 20 Dispensation, which if successful, will allow us to again dispense with the usual Section 20 requirements.
We were successful in obtaining the Section 20 Dispensation from the First Tier Tribunal (Property Chamber) (the Tribunal), and it has allowed us to get a better deal on the energy which we buy. From October 2025, not including non-commodity costs, because we were successful in previously gaining a Section 20 Dispensation, we are benefitting from savings of around £21,000 on gas and electricity in total – savings we are able to pass on to residents.
The prices which we expect to receive from October 2026 and October 2027 are also projected to save us even more. The further in advance we can buy our energy, the better the prices we are generally able to achieve. Because of this, we would like to be able to buy energy for use from October 2028 onwards so that we can continue to get the best rates possible. However, our current Section 20 Dispensation doesn’t allow us to buy energy beyond September 2028.
We therefore submitted an application for Section 20 Dispensation in January 2026 and are waiting to hear the outcome of this from the First Tier Tribunal.
The energy the Section 20 Dispensation will apply to may include that provided to:
- Residents’ homes – for example for heating, lighting, cooking, hot water etc
- The communal areas shared with other residents – for example for lighting in corridors and lounges, for the operation of lifts and door entry systems
- External lighting such as street lighting or security lights
- Other items such as TV aerials/boosters and septic tank systems
You’ll find a copy of our application pack below. We will also add new documents as our application progresses, including the final decision of the Tribunal.
As our application progresses, the Tribunal has also instructed us to send a full copy of it to every resident separately, and you may recall that in relation to our previous application, this was a very large document. Although we understand that this may seem unnecessary, please be assured that the costs associated with this mailing will not be passed onto residents.
We’ve put together some frequently asked questions (FAQs) below to answer some of the questions which you may have, but if you have any additional queries then please contact us by:
- calling us on 0800 085 1171
- email at consultationobservations@castlesandcoasts.co.uk
- post to Castles and Coasts Housing Association, 5 Paternoster Row, Carlisle, CA3 8TT
Frequently asked questions about energy dispensation
Most of the energy which CCHA has a contract in place for, is for the communal areas in the buildings where you live. For example, for lighting the stairs leading to your flat, external lighting or for powering a door entry system. It may also include the gas that you use for your personal heating and hot water.
When will the contract take effect from?
We expect the new contract to start from October 2028 and to last for three years, although the Section 20 Dispensation which we apply for may be for longer.
What if the price of energy falls and we’re stuck in a contract with a higher rate?
The contract we will sign will include the benefit of reduced rates if wholesale prices fall.
Is the Section 20 dispensation commonly used?
Yes, due to the nature of the energy market, lots of Housing Associations like CCHA are now requesting dispensation from the First Tier Tribunal to let them put better value, longer term energy contracts in place.
Does this affect who I choose to pay as my home supplier?
No, it doesn’t. The contract we want to put in place will not change any arrangements you already have with the energy suppliers for your home (unless you already receive energy for your own home via CCHA).
How can I trust you’ll get the best deal?
We will work with a specialist energy consultancy to make sure energy prices are kept as low and stable as possible. The contract will cover our offices and community centres too.
Nothing, unless you don’t agree that it is a good idea for us to enter into a long-term agreement to get the best possible prices for energy.
What if I don’t agree that entering into a long-term agreement is the right thing to do?
We will communicate with you again once the application to the Tribunal has been submitted, to give you the chance to make your own representations using the Tribunal’s reply form.
What if dispensation isn’t granted?
We will need to buy energy for use from October 2028 on shorter-term contracts, which will unfortunately mean that we won’t be able to guarantee getting the best deal for you.
