Changes to your energy contract

Our current gas and electricity contracts are due to expire on 30th September 2024 and we would like look to enter into a long-term contract going forward to save money and keep your service charges stable over the next few years. We would look to find a contract to take us from 1st October 2024 to 30th September 2028.

In order to be able to do this, we have had to request a dispensation of consultation requirements that are stipulated by Section 20 of the Landlord and Tenant Act 1985.

A dispensation means that we are asking to by-pass the normal Section 20 rules that we follow. In this case, we don’t want to allow the required amount of time to consult on a new contract because in that time energy prices are likely to increase, and we won’t be able to get you the best deal.

Going forward, it will mean that we only need to renew our contracts and reapproach the market every 3 to 4 years instead of on an annual basis. This gives us the opportunity to get a more cost-effective contract as prices are generally cheaper when you buy over a 3 to 4-year period, rather than on an annual basis.

This will also let us build better relationships with our suppliers because we’ll be a long-term customer. This should help us to get better rates and a more dedicated service.  

It also means that your service charges would be stabilised over the next few years rather than changing each year, and avoids costs that come with annual renewals such as administration and re-negotiation fees.

It also means we can action a roll-out of smart meters across your communal areas and homes. This will helps us identify areas where energy consumption is really high and look at helping you to save energy where possible.

What is a dispensation?

A dispensation means that we are asking to by-pass the normal Section 20 rules that we follow. In this case, we don’t want to allow the required amount of time to consult on a new contract because in that time energy prices are likely to increase, and we won’t be able to get you the best deal.

What does this mean for me?

Going forward, it will mean that we only need to renew our contracts and reapproach the market every 3 to 4 years instead of on an annual basis. This gives us the opportunity to get a more cost-effective contract as prices are generally cheaper when you buy over a 3 to 4-year period, rather than on an annual basis.

This will also let us build better relationships with our suppliers because we’ll be a long-term customer. This should help us to get better rates and a more dedicated service.  

It also means that your service charges would be stabilised over the next few years rather than changing each year, and avoids costs that come with annual renewals such as administration and re-negotiation fees.

Anything else?

It also means we can action a roll-out of smart meters across your communal areas and homes. This will helps us identify areas where energy consumption is really high and look at helping you to save energy where possible.

What happens next?

We’ve submitted our dispensation application to HM Courts & Tribunals Service. The next steps are as follows;

  1. We will make a copy of the application available via our website by 31 May 2024.
  2. If you wish to receive a printed copy of the application, please send an email to utilities@midlandheart.org.uk by 17 April 2024.
  3. As the application progresses, we’ll make additional documents available on the website including the final decision of the tribunal.
  4. You have until the 3 May 2024 to oppose this application. This can be done using the reply form included in this letter. If you oppose the application, please make sure you include any documents which support your case. You can send the completed form and any additional documents to the Tribunal via email to: RPMidland@justice.gov.uk. You can also write the tribunal at the following address: Midlands Region, HM Courts & Tribunals Service, First-tier Tribunal (Property Chamber) Residential Property, Centre City Tower, 5-7 Hill Street, Birmingham, B5 4UU.
  5. We will reply to any objections by 17 May 2024.

Further documents