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month Qualifying Long Term Agreement (QLTA) secured enabling long-term energy procurement benefits.

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energy supplies consolidated aligning contract end dates and integrating portfolios for maximum efficiency.

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reduction in client resource impact and achieving cost savings through competitive pricing.

The client

Southern Housing is one of the UK’s largest housing providers, managing over 80,000 homes across London, the South East, the Isle of Wight and the Midlands. The organisation provides affordable housing to more than 167,000 residents, many of whom are vulnerable to rising energy costs, making effective and compliant energy management a critical priority.

The challenge

Southern Housing manages thousands of energy supplies across a large and diverse property portfolio, with limited internal resources dedicated to energy management. Like many UK housing associations, they operate within the constraints of the Landlord and Tenant Act 1985 (Section 20), which typically restricts contracts to 12 months.

This limitation resulted in fragmented contract end dates, frequent tender exercises, limited hedging opportunities and reduced cost certainty. Supplier transitions were resource-intensive, pricing was driven by process rather than market conditions, and any cost increases had a direct impact on tenants – requiring clear communication and careful management during an ongoing cost-of-living crisis.

The recent integration with another housing provider further increased portfolio complexity, requiring a coordinated and strategic approach.

The solution

Equity Energies developed a comprehensive strategy focused on three key objectives: maximising supplier competition, conserving internal resources for the client and demonstrating best value.

We began by addressing contract fragmentation across more than 4,000 properties, undertaking the complex task of aligning contract end dates across the portfolio. This significantly reduced administrative burden and transformed the portfolio into a more attractive and competitive opportunity for suppliers.

We then consolidated and cleansed consumption data across all sites, creating a single, accurate dataset to support forecasting, supplier negotiations and long-term planning. Following Southern Housing’s integration with another provider, we successfully merged both energy portfolios – aligning contracts and combining demand to further strengthen purchasing power.

A major breakthrough was achieved by supporting Southern Housing through the Section 20 dispensation process. We prepared the required documentation and acted as expert witnesses at tribunal, securing approval for a 60-month Qualifying Long Term Agreement (QLTA). This enabled access to long-term flexible contracts, improved cost foresight and greater price stability.

With the new framework in place, we delivered stakeholder education on flexible procurement and executed a competitive tender for a long-term flexible contract. The scale and alignment of the portfolio generated strong supplier interest, resulting in competitive pricing and improved contract terms.

Finally, we managed the transfer of 4,500 supplies, coordinating closely with incumbent and incoming suppliers to ensure a seamless transition with no disruption to residents.

The Outcome

The strategy reduced exposure to market volatility and improved budget accuracy across the portfolio. Competitive procurement delivered a 35% year-on-year reduction in tariffs for approximately 4,000 customers, alongside more stable and predictable energy costs.

Ongoing account management has ensured accuracy across a highly distributed estate, with hundreds of queries resolved and improvements delivered across procurement, onboarding, invoice validation, service charge setting and reporting.

The partnership continues to deliver measurable value, generating direct savings of over £300,000 per year while reducing administrative burden and strengthening cost control.

“Our relationship with Equity Energies continues to deliver stable, affordable energy across our estate for our customers. By reducing volatility and improving budget forecasting, competitive procurement has helped bring prices down. The account management team consistently provides the support we need, resolving hundreds of queries and improving every stage of the process – from procurement and onboarding through to paying invoices, setting service charges and reporting”

Greg Falder – Heat Network & Energy Manager

The results

  • Long-Term Contract Benefits: Access to a 60-month QLTA allowed for better pricing, enhanced hedging strategies, and improved cost foresight.
  • Resource Optimisation: An 80% reduction in resource impact over the contract period, enabling internal teams to focus on other priorities.
  • Cost Savings: Achieved competitive pricing driven by market conditions, resulting in significant financial savings.
  • Enhanced Supplier Interest: The consolidated and attractive portfolio drew increased supplier engagement, leading to better contract terms.
  • Improved Tenant Outcomes: Greater cost stability and foresight in energy pricing positively impacted tenants, many of whom are sensitive to fluctuations in living costs.