Portsmouth Homes energy contract notice

Our current utility contracts are due to come to an end later this year (2024), so we’re starting a process to enter into new agreements for the utilities provided to your building. This contract will cover gas and/or electricity supplies to communal indoor and outdoor areas, including estate lighting where applicable. If you’re on a heat network, where you share a communal gas boiler, this will also apply to you.

Normally, we’d issue you with a Section 20 consultation letter (S.20 Landlord & Tenant Act 1985 (as amended)) to let you know that we’re looking to secure new services on a qualifying long-term agreement (QLTA). Energy prices can change by the hour, so we must act quickly to secure the best prices and value for money. Because of this, we don’t have time to consult you properly before we agree to a contract so we have made an application to the First Tier Tribunal (FTT) for Dispensation (to be exempt) from the Section 20 process.

The Tribunal will decide if we could comply with the requirements of Section 20 or not and make their determination to us following our application. You can read about the Tribunal process on the government’s website.

Please note this is only for communal energy supplies being delivered and not for energy you would use solely in our own property.

We have sent a letter to all leaseholders involved with a copy of the email from the Tribunal confirming receipt of the application.

Documents

The application we have made

Application for case management or other interim orders

Latest wholesale rates

PCC secured rates

Original ITT wholesale

We have received the determination from the First Tier Tribunal following our application for Dispensation from S.20 – Energy Procurement.

We have been granted the dispensation. The determination was made on 20 November 2024

The supplier we have contracted with is BRYT. BRYT are part of the Statkraft Group. The tender is for our 18-month fixed Non-Half Hourly portfolio which includes a Metered and Unmetered list of supplies.  The only compliant bid we received after going to tender was from BRYT. We have 840 individual supplies that make up the parent level contract, so the parent level cost is what we used to compare best value on price:

Tenders Received

Non-Half Hourly Electricity 18 Month Contract Tender Returns

Supplier	Non-Half Hourly Metered £/Annum	Non-Half Hourly Unmetered £/Annum
Bryt	£2,218,200	£118,894
EDF	£2,287,682	Unable To Provide Quotation

The EDF tender could not provide a quotation for the unmetered usage, therefore we have contracted with BRYT who could offer tenders for both metered and unmetered supplies.

The BRYT contract material details are as follows:

1. The contract name is ‘ Pure Certainty’ meaning a fixed price
2. There is a 30 day cancellation clause and all MPANs and Client’s account number must be included in cancellation notice
3. After the end of the Fixed Price Period, Bryt will charge Out of Contract Rates
4. Bryt may request a security deposit at any time during the contract if the Client misses payments or where their credit rating score decreases
5. Payment terms are clearly displayed on the main contract
6. Late payment fees will be charged at the “statutory interest rate”, which is the Bank of England Base Rate plus 8%
7. There is a “Cancellation Fee” based on (any) wholesale market fall and lost margin
8. Excess Consumption Charge: “If the amount of electricity supplied under the Contract during a month or more exceeds the amount You (or Your Agent) forecast would be consumed during that period by more than a Material Amount, then We may charge You an Excess Consumption Charge. We will calculate this by comparing the system prices under the BSC during that period with the Charges for that Period which relate to wholesale electricity costs
9. Under Consumption Charge: “If the amount of electricity supplied under the Contract during a month or more is less than the amount You (or Your Agent) forecast would be consumed during that period by more than a Material Amount, then We may charge You an Under Consumption Charge.” We will calculate this by comparing the system prices under the BSC during that period with the Charges for that Period which relate to wholesale electricity costs
10. Definition of a “material amount” is typically “20% Monthly”
11. BRYT clause “We reserve the right to make changes to the Contract to reflect any changes made to any Laws or Industry Rules, or any changes by a Competent Authority in its interpretation of, or official guidance for, any Laws or Industry Rules”

If you have any questions concerning the dispensation or the contract, please contact leasehold services at leaseholder@portsmouthcc.gov.uk

If you’d like to ask any questions about the application, please let us know by contacting the leasehold team at Leaseholder@portsmouthcc.gov.uk or contacting your Leasehold Officer:

• Crookhorn, Leigh Park, Wecock Farm – 023 9284 1741
• Landport, Portsea, Buckland – 023 9283 4845
• Paulsgrove – 023 9283 4561
• City South – 023 9284 1486 or 023 9283 4689