Section 20 Energy Dispensation
The information on this page applies to all tenants and leaseholders who pay a variable service charge for gas or electricity. If you are unsure if this applies to you, please refer to your breakdown of your service charge to identify if you pay towards energy costs.
Due to the volatile nature of the energy market, our energy brokers Monarch have advised that a long-term contract of 3 years is the best way to help protect from current fluctuations in energy prices.
To achieve value for money and get the best possible price for energy, Great Places must make quick decision regarding the purchase of energy as prices can change at short notice. This prevents us from applying the usual consultation mechanism (Section 20 of the Landlord and Tenant Act 1985) which can take 3 months to complete.
We intend to apply to the First-tier Tribunal Property Chamber (Residential Property) for dispensation from the consultation requirements contained in Section 20 of the Landlord and Tenant Act 1985. This is in relation to the qualifying long-term agreement proposed for the procurement of the supply of gas and electricity to tenants and leaseholders.
Please note this will not affect individual utility contracts which you pay for directly to your utility provider.
As the process progresses, we will be posting documents relevant to the application on this web page.
Energy (gas and/or electricity) supplied to the areas that we either light or heat or provide power to outside of your own front door for example lighting the stairs leading to your flat or powering a door entry system.
You may also pay for your individual energy via a service charge as an ineligible or heating charge.
Section 20 of the Landlord and Tenant Act 1985 requires Landlords to consult if they are entering into a qualifying long-term agreement which is a contract over 12 months and £100 or more per unit inclusive of VAT.
Landlords are required to consult with customers before entering any long-term agreement for services under Section 20 of the Landlord and Tenant Act 1985. Dispensation in this instance is special permission, from the First Tier Tribunal (Property Chamber), to enter into agreements without following the Section 20 process.
When we are trying to get the energy deals for you, suppliers are only able to lock into the best available prices for a brief time. This brief period means there is not enough time for us to consult with you and follow the Section 20 process which can take up to 3 months.
This dispensation will not change any existing arrangements you already have with the gas and/or electricity suppliers you have in place for your home.
