The Section 20 Act blocks Housing Associations from entering into contracts over 12 months in length where final costs are passed onto tenants, such as energy bills. To enter into contracts exceeding 12 months, Housing Associations must go through a process of communicating their intention with its tenants and discussing potential implications; this is called Dispensation.
BENEFITS OF SECTION 20
Gas and power markets are tradable up to three-years ahead, and longer contracts ensure greater future price visibility and non-commodity charges breakdowns, 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. Going beyond 12 months opens up improved risk management and hedging options, such as hybrid and flexible procurement contracts.
Section 20 Dispensation
Watch our webinar with Clarke Wilmott to understand how Section 20 Dispensation works.
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.