Below is a simple description of Energy Local. At the bottom there is a lot more detail that can be downloaded.
Background – the Present Energy Market
At present, if local generation is not used on site when it is generated, it is sold at ~5p/kWh and neighbours, who may have invested in the generator, have to buy it back at perhaps 15p. Furthermore, currently in the UK domestic electricity market consumers are charged a flat price per unit, irrespective of when the electricity is used. However, suppliers buy electricity at different prices at different times of day depending on the level of demand and generation available. Domestic customers are not rewarded for matching use to local generation or using power at cheaper times of day.
The Idea of Energy Local
Energy Local allows a local group of domestic customers to form themselves into new type of organisation, an Energy Local Club (ELC) with the domestic consumers and the generators as members. Householders have advanced meters to show when and how much power they were using. Members (consumers and generators) agree a price (the match tariff) that the generator receives if power is used within the club when it is generated. The power from a local generator is shared across all the Energy Club members using power in each half-hour. The price for the power that is used locally gives the generator a higher price than FITs minimum and contributes towards lower bills for households. The licensed supplier sells power via a Time of use Tariff (TOUT) to householders for power not generated locally
Savings from the New Community Energy Model
We aim to achieve up to 10-30% savings compared to your normal tariff. However your actual electricity bill depends on eg the weather and the amount of electricity you use. More of what you do pay will go to local renewable generators and the local economy.
More about the Energy Local Concept
A diagram of our Energy market is here.
A diagram of difference between how we buy power now and Energy Local is here.
A diagram of the Energy Local Model and a Supplier is here.