Purchasing cheaper energy for communal areas

With energy costs increasing every year, we know that the cost of using gas or electricity in the communal areas of our buildings is a concern to many tenants and leaseholders.

To try and combat these rising costs we are looking to buy the gas and electricity that you use in communal areas in bulk and on longer term contracts. By using wholesale suppliers, we believe the costs will be lower and they can be fixed for the next three years.

As the gas and electricity we purchase will be for the whole of Catalyst, the cost would be significantly high. So the rules concerning EU procurement and service charge consultation will apply.

We would make this bulk purchase using an energy framework where the energy suppliers have already been through a competitive tender process and are deemed to be fully OJEU (The Official Journal of the European Union) compliant. But with energy being a commodity and wholesale prices fluctuating daily, it would be impossible for us to follow the normal service charge consultation period. That’s why we intend to apply for dispensation at the first tier tribunal.

We would only enter into a new long term energy contract if it’s beneficial for you. If we find that it’s not, we will continue to purchase under a 12 month contract which would not be subject to the service charge consultation.

If you would like further information or have any concerns to the proposal that we buy energy on mass, please contact Kelechi Ukachukwu by 23 August:

  • Email: kelechi.ukachukwu@chg.org.uk
  • Call: 0300 456 2099
  • Write to: Kelechi Ukachukwu (Leaseholder consultant), Catalyst Housing, Ealing Gateway, 26–30 Uxbridge Road, London W5 2AU