Gas and electricity contracts 2025 to 2030 for Communal Landlord Supply
We intend to enter into a new contract for the supply of energy to power the communal lights, lifts, door entry systems, CCTV, fire alarms, district boilers, and other systems around the borough.
In doing so, we applied to the First Tier Tribunal for dispensation from the full consultation process.
We had to make this application because the energy market moves at a speed where it is not possible to meaningfully observe a full 30 day consultation period for proposed rates. This is because the rates change on a daily basis.
The dispensation will allow us to secure rates at the most optimum time.
You can find a copy of our application to the tribunal here.
You can find a copy of the tribunal's directions here:
The directions explained how you were able to make representations on the application.
You can find a copy of the council's full bundle here:
The tribunal has now considered the matter and issued their decision here:
We are pleased to advise that the tribunal has granted dispensation on the terms presented.
This should allow the council to secure energy at the most optimum rates over the next five years.
It also does not affect the rights of any leaseholder to challenge the reasonableness or payability of any service charge aside from that which relates to a failure to comply with the statutory consultation requirements.
What happens next?
Within 21 days of entering into contract, we will publish on this webpage the name of the energy supplier, the date of the agreement, the contract duration, the date on which supply starts, the date on which the contract period ends, and a summary of the observations received through the Notice of Intention and the council's response to the same.
You will also have an opportunity to request a copy of the supply agreement which the council has entered into with an energy supplier. This will be available free of charge for a period of 30 days following publication of the above information.
Here are some answers to common questions about the process.
Why do you need to renew the communal landlord contracts for gas and electricity?
A new procurement exercise is required for the council's call-off contract for gas and electricity because our current contract with LASER, who are our approved purchasing body under the Public Contract Regulations 2015, expires on 31 March 2025.
How long will the contract be for?
To secure the best value for money, we intend to secure a new 5-year call-off contract utilising a rolling, forward-buying arrangement up to 31 March 2030. This is in line with the Council's 2030 Carbon commitment.
What are the aspirations of the contract?
We are seeking to establish a new contract that embeds best value, provides excellent customer service, delivers accurate quality reporting, and includes provision for additional services to drive on financial efficiency.
What are the forecasts for future energy costs?
Energy is a volatile commodity and is subject to year-on-year fluctuations in both commodity and non-commodity costs. It is therefore essential that we have an energy procurement strategy in place to manage these risks.
At present, future energy costs are forecast to rise and it is important we have a vehicle in place to react to changes in the market.
What has the council done so far?
Over the past several months, we have considered various procurement options and strategies by reviewing energy contract frameworks, attending specialist energy management workshops, and benchmarking events, and we are in the process of identifying the most effective energy procurement pathway.
We have also joined a collaborative working group with other councils called the London Energy Partnership Project (LEPP). LEPP was formed with the support of a consultancy service called Cornwall Insight to deliver an energy options appraisal to inform decision-making and to benchmark against the energy market and other energy organisations.
Cornwall Insight is an energy industry-recognised and respected market intelligence expert and analyst. Cornwall Insight's service will offer ongoing insight on the broker market, commercial assurance, and ongoing value for money assessments to support parties' energy buying decisions.
We are now reviewing all the information to form a decision on the best energy management contracts for our residents and the council.
How will we know we are getting value for money?
The council will carry out a value for money cost assessment that will consider proposal costs, impacts, and the consideration of risks and uncertainties.
How is the council going to involve leaseholders in deciding on the contract?
Long-term agreements for services are usually subject to statutory consultation across two stages.
However, the speed the energy market moves means it is difficult to follow the full consultation process.
We therefore intend to carry out the first stage of consultation with homeowners to offer an opportunity to submit comments and observations. We will concurrently ask the First Tier Tribunal to grant us release from consulting across a second stage. This will give us the flexibility to enter into contract at the most opportune moment.
We will also publish updates here to keep you informed of the latest position.
What if I have a query not listed here?
If you have any queries about the process, please contact us on service.charges@lbhf.gov.uk.