First-tier Tribunal Grants Unconditional Dispensation for Service Charge Agreement

OUTCOME: Allowed

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case reference : LON/00AB/LDC/2020/0070 HMCTS code (paper, video, audio) : P: PAPER REMOTE Property : Various properties in Borough Applicant : [redacted] Dagenham Representative : Judge & [COMPANY] Respondent : [redacted] London Borough of Barking and Dagenham subject to communal electricity and gas supplies Representative : N/A Type of [NAME] : For the determination of dispensation pursuant to [POSTCODE] of the Landlord and Tenant Act 1985. Tribunal members : Judge Tagliavini Venue : PAPER REMOTE Date of decision

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2 September 2020 DECISION

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Covid-19 pandemic: description of hearing This has been a remote determination on the papers which has not been objected to by the parties. The form of remote hearing was P:PAPERREMOTE, A face-to-face hearing was not held because it was not practicable and all issues could be determined on paper. The documents that the tribunal was referred to are in a bundle of 94 pages, the contents of which have been noted. The order made is described at the end of these reasons. Decisions of the tribunal (1) The tribunal grants the applicant unconditional dispensation from the requirements of Schedule 2 of the Service Charges (Consultation Requirements) (England) Regulations 2003 for the for the purpose of entering into a qualifying long term agreement with [NAME] (operated by Kent County Council) effective from the 1 October, for the purpose of supplying communal electricity and gas to the residential [NAME] in the applicant’s borough.

The [NAME]

1. This is an [NAME] for dispensation pursuant to section 20ZA of the Landlord and Tenant Act 1985. The [NAME] is made in relation to a qualifying long term agreement (“the Agreement”) that the applicant intends to enter into with [NAME] (“[NAME]”), being the name of the framework operated by Kent County Council (“the contracting party) under the terms of the Agreement for the supply of communal electricity and gas to the borough wide residential long leasehold properties as set out in Appendix I and II of the bundle.

2. The applicant seeks specifically to be granted unconditional dispensation from the requirements of Schedule 2 of the Service Charges (Consultation Requirements) (England) Regulations 2003 which applies section 20 of the 1985 Act to this proposed Agreement.

2. In support of the [NAME], the tribunal was provided with a Statement of Case dated 3 June 2020 setting out the benefits and value of the framework to the residential [NAME]. The applicant stated that its current contract with [NAME] is due to expire on 30 September 2020 and that the applicant has already agreed to enter into a new contract with effect from 1 October 2020, for a 2 year term with an option of 2 additional years. The applicant stated that it would not be practical for leaseholders to be consulted as it would render “the whole energy supply contract process unworkable.”

3 3. The applicant stated that it had carried out measures to ensure that the best value for the supply of gas and electricity was being obtained for the benefit of the [NAME] by entering into the Agreement.

4. The applicant provided evidence that the [NAME] had been made aware of this [NAME] and provided with an opportunity to indicate to the tribunal any objection to the grant of dispensation. The tribunal were informed that the applicant had received no objections from the [NAME].

5. The tribunal also confirmed that no objections or any communications had been received from the [NAME] to this [NAME] for dispensation.

The tribunal’s decision and reasons

6. In the absence of any objections from the [NAME] in the borough as identified in Appendix I and II to this [NAME], the tribunal accepts the applicant’s reasons for seeking dispensation.

7. Therefore, the tribunal grants the applicant unconditional dispensation from the requirements of Schedule 2 of the Service Charges (Consultation Requirements) (England) Regulations 2003, for the purpose of entering into a qualifying long term agreement with [NAME] (operated by Kent County Council) effective from the 1 October concerning the supplying of communal electricity and gas to the [NAME] in the applicant’s borough.

Name: Judge Tagliavini Date: 2 September 2020

Rights of appeal By rule 36(2) of the Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013, the tribunal is required to notify the parties about any right of appeal they may have. If a party wishes to appeal this decision to the Upper Tribunal (Lands Chamber), then a written [NAME] for permission must be made to the First tier Tribunal at the regional office which has been dealing with the case. The [NAME] for permission to appeal must arrive at the regional office within 28 days after the tribunal sends written reasons for the decision to the [NAME].

4 If the [NAME] is not made within the 28-day time limit, such [NAME] must include a request for an extension of time and the reason for not complying with the 28-day time limit; the tribunal will then look at such reason(s) and decide whether to allow the [NAME] for permission to appeal to proceed, despite not being within the time limit. The [NAME] for permission to appeal must identify the decision of the tribunal to which it relates (i.e. give the date, the property and the case number), state the grounds of appeal and state the result the party [NAME] the [NAME] is seeking. If the tribunal refuses to grant permission to appeal, a further [NAME] for permission may be made to the Upper Tribunal (Lands Chamber).