Good Energy - UK's First Local Electricity Tariff

RNS Number : 3956R

Good Energy Group PLC

19 November 2012

 



 19 November 2012

Good Energy Announces UK's First Local Electricity Tariff

Local Residents Near its Wind farms to Benefit From Lower Bills

Good Energy today announces the UK's first Local Tariff to reward households near its wind farms with lower electricity bills, pioneering a blueprint to put community interest at the heart of renewable energy generation across Britain.

Customers who live within two kilometres*of the company's flagship 9.2MWDelabole wind farm in north Cornwall, will qualify for its new Local Tariff, offering a 20% discount on its standard electricity prices. It will currently save an average Good Energy customer in the area around £100 over a year.

The discount will be available to existing and new customers from early 2013. The tariff will also pay out a 'windfall' credit of up to £50 per household every year that the turbines exceed their expected performance.

Juliet Davenport, CEO of Good Energy, said: "I'm proud that Good Energy is leading the UK wind industry with a new model ensuring that people who live near our wind farms share in their success. Wind power has a huge role to play in meeting the UK's future energy needs, and we think that it's only right that our local communities should be recognised for their contribution to tackling climate change and reducing the UK's reliance on expensive imported fossil fuels."

"When we researched opinion in the local community, there was a very positive response from residents with 68% of those surveyed saying they would consider switching to a Good Energy Local Tariff once the benefits were explained to them.  This response is in line with the many inspiring community projects, such as Gigha in the Hebrides which generates two thirds of its own electricity with three wind turbines which are owned by the community."

Susan Theobald, local Delabole resident, says: "Renewable energy projects have always been very close to my heart.  I feel that people living in close proximity to wind turbines would be more sympathetic to this form of renewable energy if they were to gain some advantage from it, such as a favourable local tariff'.

Good Energy's Local Tariff is replicable across the country and will be offered at the company's other wind farm sites (over 4 MW) as they are developed.  The tariff fulfills a long-standing ambition of the company to ensure communities benefit from their local wind farm.  Good Energy plans to develop 110MW of new renewable sites by 2016 across a number of technologies.

The future of onshore wind has been hotly debated in the run-up to the government's Energy Bill, due to be published later this week, with critics arguing that wind farms are being "imposed" on communities. Energy Secretary Ed Davey launched a consultation in September to explore how communities secure financial, social and environmental benefit from hosting onshore wind farms.

The latest government research shows that onshore wind is supported by 66% of the public with 12% opposed, including 4% who are strongly opposed. However, there is evidence that communities become more supportive when they benefit directly from local wind farms. There is much greater public acceptance of renewables in Germany, where two thirds of all turbines and solar panels are owned by individuals, farmers and communities.

Delabole was the UK's first commercial wind farm, developed by local farmer Martin Edwards as a response to plans for a nuclear power station in the area. He sold his 150-strong dairy herd and milk quota to invest in the project and it opened in 1991. Good Energy bought the wind farm in 2002 and Mr Edwards sits on the board of Good Energy Group.

Good Energy invested £11.8 million to redevelop Delabolein 2010, replacing the original 10 turbines with four larger ones and more than doubling capacity from 4MW to 9.2MW.

The company places a strong emphasis on engaging the community when developing new renewable sites. At Delabole, it held two consultations before the redevelopment where local residents voted to have a smaller number of big turbines rather than a larger number of small ones. It has also held community events and open days. It also pays £9,000 a year into a community fund to support projects that benefit local people.

Mr Edwards said: "The wind farm has always had great support from the community and we've brought investment, jobs and tourists to the area. I'm pleased we'll soon be able to add discounted power to the benefits we bring."

Good Energy has a history of innovation and has helped change the way the UK generates and uses electricity. Juliet Davenport set up the company in 1999 as the first 100% renewable sourced electricity supplier in the UK. Unlike other energy suppliers, Good Energy specialises in sourcing its power from small and medium-sized renewable generators, including some of the UK's leading community energy projects.

The company pioneered financial support for renewable generators almost a decade ago, and is now the UK's largest administrator of the feed-in tariff, supporting more than 40,000 small generators. It also developed the UK's first Renewable Heat Incentive, HotROCs, using revenues from gas sales to reward customers generating their own heat.

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For further information, photography, video footage and interviews, please contact:

Anna Guyer                   [e-mail]                         07976 556164

Louise Daniels               [e-mail]                       01249 765541

For further information on how to register an interest in the Delabole Local Tariff, please visit www.goodenergy.co.uk/delabole-local-tariff

NOTES TO EDITORS

* The Good Energy Delabole Local Tariff, offering a 20% discount on standard rates, will be open from early 2013, to current and new Good Energy customers living within two kilometres of the substation at Delabole wind farm. It will be funded up to an annual payment of £25,000, which equates to approximately 300 eligible households. A Local Tariff will be available to customers living near all Good Energy wind farms above 4MW in size.

Customers on the tariff will also qualify for an annual bonus payment if turbines generate more electricity than expected. The threshold will be determined by the model, size and location of the turbines and the payment will depend on how far the wind farm has outperformed expectations and the number of customers on the tariff.

The average UK household uses 3,300kWh of electricity a year, costing about £550 a year at current Good Energy prices. Good Energy's standard tariff is currently comparable to the Big 6's standard tariff and with the 20% discount, this tariff is set to be one of the cheapest on the market for eligible customers at the current time.

About Good Energy

Good Energy the UK's leading renewable sourced electricity supplier. Its main tariff is certified by the independent Green Energy Supply Certification Scheme, which guarantees it delivers a genuine environmental benefit.  Since it was founded in 1999, Good Energy has been a catalyst for change in the energy market. A champion of independent renewable electricity producers, it supports a community of 40,000 green generators and supplies over 30,000 homes and businesses.

Useful Information

For more on the government's consultation into the community benefits of wind farms and the DECC public opinion survey see Communities must see benefit from hosting wind farms - Davey http://www.decc.gov.uk/en/content/cms/news/pn12_105/pn12_105.aspx

For information on German support for renewables see Guardian Environment - Giving power to the people can solve the wind farm stand-off http://www.guardian.co.uk/environment/damian-carrington-blog/2012/jun/04/wind-farm-power-opposition

 

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