Energy consultation

In the past, we have opted for either one‑year fixed energy deals or variable rates, based on the recommendations of our energy consultants and whichever option was considered the most affordable at the time. We now believe that a longer‑term fixed contract would offer better value for money, and securing this type of agreement would typically require formal consultation.

Section 20 is the legal process we must follow when consulting with residents regarding such contracts and it is a lengthy process. 

As the Section 20 process doesn’t work with fast moving markets, like the energy market, Housing 21 is asking a government body called the First Tier Tribunal for permission to consult with residents in an alternative way. This is called dispensation.

Dispensation means the Tribunal agrees that we can choose a supplier without completing the full Section 20 consultation. The First Tier Tribunal will have to be satisfied that our alternative proposal is sound and thorough. Many housing organisations use dispensation for energy contracts because prices change so quickly.

No. The Tribunal will not decide:

• how much your service charges should be
• whether the contract price is reasonable
• whether we can recharge the costs

The Tribunal will only decide if we can follow an alternative process.

Housing 21 does not make any profit from energy contracts. We only charge residents what we pay.

If the Tribunal directs us to complete further consultation then we will follow their recommended actions.

We’ll continue to engage with you regarding the outcome of the dispensation as well as the outcome of the procurement process.

No. You do not have to respond unless you want to.

If you are happy for us to go ahead with the application and our plans, you do not need to do anything. However, if you have questions, worries or objections, we encourage you to tell us so that we can take your views into account and, if appropriate, share them with the Tribunal.

If the Tribunal grants dispensation, Housing 21 will still act reasonably and transparently. We will provide residents with information about the new or continued contract, costs, and how these are reflected in service charges in line with your lease or tenancy.

• Letters and newsletters
• Supporting question and answer sheets
• Coffee mornings and drop-in sessions with management teams
• The Resident Service Charge Forum has produced a video
• Opportunities for residents to join wider forums (Extra Care or Retirement Living Resident Forums) 

We cannot say yet. Energy prices are changing a lot across the world. We’re working to get the best long‑term deal to help keep service charges down and give you peace of mind, knowing your costs will stay stable.

New prices will start from April 2027.

No. Your communal gas and electricity will not be interrupted.

You will continue to pay your service charges in the same way.

We believe longer contracts (two – four years) can offer better value and surety for residents and offer more protection from price increases. 

No. Housing 21 will cover the cost of the application itself. These costs will not be added to your service charges.

Housing 21 will send an application to the Tribunal.

You will then receive a letter from HM Courts and Tribunals Service explaining:

what we have asked for

what the Tribunal says we must do

how you can respond if you want to

You do not have to respond unless you want to.

If you wish to comment on the proposal, please send your views to us by [date – at least 14 days from letter] using one of the methods below:

• Speak to your local manager directly
• Email: section20@housing21.org.uk
• Post: FAO: Dispensation Consultation, Tricorn House, 51–53 Hagley Road Birmingham, B16 8TP