Last summer (29 July 2025) we applied to the First Tier Property Tribunal for legal dispensation, so we can work more quickly on your behalf to secure the best deals on energy. We heard back from the Tribunal on 18 April 2026 and we have this dispensation.
This only affects the contracts where you pay us for energy via your service charge (usually for communal spaces). Your own contracts and relationship with your household energy suppliers will continue and won’t be affected.
We now have legal permission from the courts to remove the usual 30 day consultation period before securing longer term gas and electricity contracts. Consultation periods exist to give everyone the chance to comment, and we value that. But in a fast moving and unpredictable energy market, 30 days is a long time and prices can change significantly. By the time consultation ends, the most competitive rates are often gone.
This permission allows us to act more quickly and secure better prices on your behalf. Until now, we could only buy 12 month contracts without consultation. With dispensation, we can now lock in prices for longer periods (for example, two or three years) where they offer better value or greater stability for you.
We’re pleased to have the dispensation in place, but we have already signed 12-month utilities contracts for the period 1 April 2026 – 31 March 2027 so this won’t change these as a result of the court decision. Also, with the world energy situation being so unpredictable we want to reassure you we won’t be using this permission to secure any future contracts until the situation in the Middle East has stabilised.
You can view the full dispensation decision from the Tribunal here.
We understand that global events and the rising cost of living are placing significant pressure on household budgets. We also recognise that uncertainty about future costs can be a cause for concern.
That’s why we are committed to securing the best possible value when procuring gas and electricity for your scheme.
We’ll continue to update this page with further information on how we are using the dispensation and our plans for future energy contracts.
How much money will I save now that Orbit has obtained a Section 20 dispensation?
We can’t guarantee savings every year, as this depends on global energy prices at the time. However, having the dispensation gives us greater flexibility to secure the best possible deal on your behalf when contracts are renewed.
This includes the option to:
• Enter into longer-term contracts where they offer better value
• Purchase energy in smaller amounts over time, allowing us to take advantage of lower wholesale prices and reduce supplier risk premiums.
Historically, longer-term deals have often provided better value. For example:
• Gas prices were around 3% cheaper on a two-year contract compared to a one-year deal
• Electricity prices were typically 1–3% cheaper on a two-year deal
Longer-term contracts can also provide protection against future price increases.
What is an energy broker?
We manage over 1,800 electricity and gas meters across our schemes. To support this, we use an energy broker who:
• Sources the most competitive market prices
• Manages the tendering process
• Checks billing accuracy and raises disputes with suppliers
Now that we have dispensation, the broker can use a wider range of contract options to help secure the best value.
What happens if a short-term deal is better value?
We will always select the most cost-effective option at the time.
Even with dispensation, this means:
• If a 12-month contract offers the best value, we will choose it
• If longer-term contracts represent better value, we may select those instead
All decisions will be based on achieving the best outcome for customers.
Why can’t I have a direct account with a provider and pay my utility bills myself?
In most cases, communal energy use (e.g. lighting and heating in shared spaces) must be fairly shared across all homes. We therefore:
• Pay the supplier directly
• Recover costs fairly through the service charge
In some schemes, homes do not have individual meters, so we also manage those supplies centrally.
By purchasing energy in bulk, we can secure lower rates than individual households, and we don’t make any profit on these charges.
What are the current energy rates (2026–27)?
We are confident our current rates are competitive:
Full contract details are available on this webpage for transparency.
Why are gas and electricity prices high?
Energy prices remain influenced by global factors such as:
• Geopolitical tensions and conflicts
• Wholesale gas market volatility
• The UK’s reliance on gas for electricity generation
These factors continue to impact both gas and electricity costs.
What can I do if I am struggling with my bills?
Support is available. Please visit:
www.orbitcustomerhub.org.uk/help-support/your-energy-our-support/
This page includes advice, guidance, and available support options.
Why did Orbit apply for dispensation?
Energy markets are now more volatile than in the past. Longer-term contracts and flexible purchasing approaches can provide better value and stability.
The dispensation allows us to respond more effectively to market conditions and secure the best deals for customers.
How was customer feedback considered?
Customers were consulted during 2025, with 86% of respondents supporting the proposal.
All feedback was submitted to the Tribunal as part of the application process and carefully considered before the decision was made.
What happens now the dispensation has been granted?
Now that we have approval:
• We will work with our broker to obtain prices for 1, 2 and 3-year contracts
• We will consider break clauses where possible
• We will continue to monitor markets before committing to new contracts
We will provide updates on this webpage as decisions are made for contracts beyond April 2027.
Will you still consult customers about other topics?
Yes. The dispensation only applies to how we buy gas and electricity contracts.
Even with the dispensation on energy, we will continue to:
• Act in customers’ best interests
• Provide transparency on contracts and pricing
• Share updates and relevant information
What happens if prices fall after you agree a contract?
We carefully assess market forecasts before entering contracts.
Where possible, we will:
• Seek break clauses
• Avoid committing unless pricing represents good value
The goal is to balance cost savings and price stability.
Can suppliers increase prices during a contract?
No. Once agreed, unit rates and standing charges are fixed for the duration of the contract.
Will I be charged for the dispensation application?
No. We have decided that customers will not be charged for the costs associated with the dispensation application.
This means there will be no additional cost added to your service charge in relation to this process.
Will my personal energy supply be affected?
No. If you already have your own supplier for your home, this will not change.
The dispensation only applies to supplies already included in your service charge (typically communal energy or schemes without individual meters).
Can this dispensation be used for other services?
No. The dispensation applies only to gas and electricity procurement.
Where can I see more information about contracts?
We now publish our energy contracts on this webpage, including:
• Unit rates
• Standing charges
• Metering costs
• Broker fees
If you need help finding details for your scheme, contact:
📧 energyadvice@orbit.org.uk
What should I do if energy is being wasted in my building?
Please report this to our repairs team via myAccount or call us if it’s urgent.
Why do you charge the same amount each month when usage varies?
We forecast the total annual cost and spread this evenly across the year to help you manage your payments.
Actual energy use will be higher in winter and lower in summer. If actual costs are lower than forecast, you will receive a refund through the year-end service charge reconciliation.
Will this affect benefits covering my service charge?
No. This change does not affect how benefit payments are applied.
Can I join Orbit’s energy contracts as an individual customer?
No. These are commercial contracts and cannot be applied to individual household supplies.
However, you can compare domestic tariffs via:
www.uswitch.com/gas-electricity/
You may also wish to visit our energy advice pages for further tips.
Now we have dispensation from the court, we want to explain more about how we plan to use these permissions in the future.
Current Contracts (April 2026 – March 2027)
Prior to the dispensation decision, Orbit secured gas and electricity contracts for the period 1 April 2026 to 31 March 2027.
We procure energy by aggregating usage across our portfolio, which includes:
• Over 1,700 electricity meters
• Nearly 100 gas supplies
We work with an energy broker to help secure the most competitive market rates. As part of our strategy, we aim to purchase energy ahead of winter to avoid seasonal price increases. This is why the current contracts were agreed before winter began.
These contracts are now fixed and will not change.
Market position and future planning (Post-April 2027)
We’re actively monitoring energy markets on a monthly basis for contracts beyond April 2027. At the moment, it does not represent good value to enter into new agreements, as global energy prices are high due to the ongoing conflict in the Middle East.
As we secured contracts before the conflict, we have time to monitor how market conditions change before committing to new deals.
For further context, we have included an Energy Market Review for Q1 2026 on this page.
Use of the dispensation
Now that we have dispensation, we will ask our energy broker to look at pricing for:
• 12-month contracts
• 24-month contracts
• 36-month contracts
We’ll only enter into longer-term agreements where they clearly represent the best value for money.
Where possible, we’ll also seek to include break clauses, allowing us to leave contracts early if market conditions improve.
Current value for money
We are confident that our current energy rates are competitive:
Transparency of contracts
We have published our utility contracts here so you can review them in full. These documents include:
• Unit rates
• Standing charges
• Metering costs
• Broker commission
All costs shown are fully inclusive of energy supply-related charges.
We know these contracts are long and complicated. If you would like help finding the details for your specific site please contact us at:
We‘re here to help.
Next steps
Once contracts are agreed for the period beyond April 2027, we’ll provide further updates here.
Other ways to reduce costs
In addition to energy procurement, we’re also exploring options to reduce:
• Metering costs
• Data collection charges associated with smart/AMR meters
One option under consideration is choosing longer-term agreements for these services to secure better value. Any decision on this will only be taken where there is clear evidence of cost savings.
We’ll provide further updates on this as we make progress.
We’ve been successful in our request for legal dispensation so that we can work more quickly on your behalf to secure the best longer-term deals on energy.
You can find a full copy of the Dispensation decision from the Tribunal here.
Over the coming weeks we’ll update this webpage with more information about what the decision means and what we plan to do next.
Current energy contracts
We’re pleased to have the Dispensation in place, but the 12 month utilities contracts for the period 1 April 2026 – 31 March 2027 have already been signed and will not change.
We also won’t be using this Dispensation to secure future contracts until the situation in the Middle East has stabilised.
If you have any questions about the Dispensation please contact:
Daniel Welch, Group Energy Manager
daniel.welch@orbit.org.uk
In November, we received a response from the Tribunal. Deputy Regional Judge Nigel Gravells, who is overseeing the case, issued a set of Directions for us to follow, which you can review in our 21 November update. Following this, we wrote to all impacted customers to explain how to respond to the Tribunal. We have now reviewed and replied to all customers who opposed the application for dispensation.
On 30 January 2026, we submitted our Tribunal bundle and all relevant documentation. We are currently awaiting confirmation from the Tribunal on whether the matter will proceed by way of a paper determination—a decision made based on written submissions only—or through an oral Hearing. We will provide an update on this webpage as soon as further information becomes available.
Copies of our responses to those who opposed the application, along with the submitted Tribunal pack, are available to review below.
In November Orbit heard back from the tribunal. Deputy Regional Judge Nigel Gravells, who is overseeing the case, outlined several Directions for Orbit to follow. As a result we wrote to all impacted customers by email, first class post or hand delivery outlining the next steps of the application.
A copy of this letter and several documents have been added below
|
Name of document |
What is this? |
|
Leasehold 5 form - Apply to dispense with consultation requirements |
The application form we submitted to the Tribunal. |
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Statement of Case on Behalf of the Applicant (with leaseholder details removed) |
Supporting evidence submitted with our application. |
|
Examples of tenancy agreements submitted as part of our evidence. |
|
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A copy of the letter sent in November to all impacted customers by email, first class post or hand delivery outlining the next steps of the application. |
|
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Directions of Deputy Regional Judge Nigel Gravells dated 3 November 2025 with Reply Form attached |
The official response from the Tribunal to our application. It outlines what we need to do next. It also includes a reply form to complete if you wish to support or oppose our application. This must be emailed to rpmidland@justice.gov.uk and MLSSocialHousing@shma.co.uk by 19 December 2025 |
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Guidance from the Tribunal on providing statements. |
|
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Guidance from the Tribunal on legal advice. |
|
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A blank form we will complete if we wish to make an application to the Tribunal judge to consider a procedural matter. Whenever a request is made, a copy of the completed form will also be uploaded to the webpage. |
We submitted an application to the First-tier Property Tribunal on 29 July 2025.
The Tribunal contacted Orbit on 3 November 2025 to confirm when the case would be considered. We then wrote to you to explain the process in more detail.
The deadline for responses to the Tribunal was 19 December 2025.
We responded to all customers who opposed the application and submitted our full Tribunal bundle and supporting documentation on 30 January 2026.
The Tribunal has now reached a decision, and we are pleased to confirm that our application for dispensation was granted on 18 April 2026.
Further information on what this decision means and how we will use the dispensation is available elsewhere on this page. We will continue to provide updates as we progress with future energy procurement.
Transparency of contracts
We have published our utility contracts here, so you can review them in full. These documents include:
• Unit rates
• Standing charges
• Metering costs
• Broker commission
All costs shown are fully inclusive of energy supply-related charges.
We know these contracts are long and complicated.
If you would like help finding the details for your specific site please contact us at: energyadvice@orbit.org.uk
