The Act Of

SECTION 20

The Section 20 Act blocks Housing Associations entering contracts beyond 12 months in length where the final costs are passed on to tenants, such as energy bills. In order to enter into contracts exceeding 12 months, Housing Associations must go through a process of communicating its intention with its tenants and discussing potential implications; this is called Dispensation.

BENEFITS OF SECTION 20

Future Transparency

Gas and power markets are tradable up to three-years ahead, and longer contracts ensure greater future price visibility and non-commodity charges breakdowns, therefore making you better equipped for budgeting further down the line.

Increased Procurement Flexibility

Longer energy contracts via section 20 dispensation also allow for a wider range of procurement options than the limited scope of a fixed 12-month contract under Section 20. Going beyond 12 months opens up improved risk management and hedging options, such as hybrid and flexible procurement contracts.

Section 20 Dispensation

Understand Section 20 Dispensation with Clarke Wilmott and Monarch Partnership webinar.

SUPPORT FROM OUR TEAM

You can also have added support from our intelligent trading and risk management desk. Due to the limitations of a 12-month energy contract, there is less we can help you with, however, lengthier flexible procurement agreements mean our energy market experts can have greater involvement in the process. They are constantly monitoring the market to lock in the best prices for you.