Getting the UK’s community energy sector back on track

Organisations in the UK have come together to challenge proposed rule changes that could negatively impact community energy co-operatives. 

Co-operatives UK, Community Energy England, The Co-operative Energy, Social Enterprise UK, 10:10 and Regen SW have united in a call for the fair treatment of energy co-ops, a sensible approach to share capital and an optional asset lock for co-ops.

Community energy organisations in the UK have been on the rise, giving communities more control over production and provision, as well as providing opportunities to alleviate fuel poverty and for local employment.

On 27 January, the government released the full report into its Community Energy Strategy, which praised the way “communities are coming together to take more control of the energy they use”.

In his introduction to the report, Ed Davey, Lib Dem energy secretary, says its aim is to “help existing [community energy] groups grow and to inspire more to set up and expand”.

“We want to tap into the enthusiasm and commitment that’s so evident in community groups across the country – whether it’s for helping people struggling with energy bills or for playing a part in the global race to decarbonise our society.”

However, there is concern that the government’s proposed rule changes would bring the community energy revolution to a halt. These changes include: an alteration to what type of organisations are eligible for tax relief; the refusal of the Financial Conduct Authority (FCA) to register any new community energy ventures that are established as bona fide co-operatives; and the FCA’s challenges to the co-operative endeavour, whereby capital raising and profit distribution go hand-in-hand with the realisation of social mission.

In response to the proposals, Co-operatives UK, Community Energy England, The Co-operative Energy, Social Enterprise UK, 10:10 and Regen SW have led in producing a briefing paper outlining the main actions required to get the UK’s community energy sector back on track.

“This is a moment when the priorities of one sector are of common interest to all co-ops. We are working closely with energy co-ops to make sure our collective voice is heard, and aim to call on the support of the wider co-operative sector in the coming weeks,” reads the briefing.

“The UK needs to move from an economy based on fossil fuels, towards one based on renewable energy; from a market dominated by a handful of suppliers, to one where thousands of communities meet their energy needs locally.