Energy supplier

(only relevant to residents with variable service charges)

In 2024 we wrote to all residents who have variable service charges and who have gas and/or electricity supplied to them through Castles & Coasts Housing Association’s (CCHA’s) energy supplier to advise about a Section 20 Dispensation which we were applying for. 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. It means that for the year from October 2025, not including non-commodity costs, we will save approximately £21,000 on gas and electricity in total – savings which we will be 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.  In fact, the further in advance which we can buy our energy for, the better the prices which we are generally able to achieve.  This means that soon, 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.  Unfortunately however, our current Section 20 Dispensation doesn’t allow us to buy energy beyond this date.

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 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. Therefore 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.

The energy for which 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 which are shared with other residents – for example for lighting in corridors and lounges, for the operation of lifts and door entry systems
• External lighting – for example street lighting or security lights
• Other items such as TV aerials/boosters and septic tank systems

A copy of our application will be displayed here on our website and we will also add new documents as our application progresses, including the final decision of the Tribunal.

We expect that as our application progresses, the Tribunal will also instruct 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