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, most domestic electricity is sold on a ‘flat’ tariff. You pay the same amount per unit whenever you use it. However, the supplier who sells you your power, pays the generators different prices at different times of day. With a few limited exceptions (such as Economy 7 or Economy 10), if you use power at a time when the power is cheap for the supplier to buy, this saving is not passed on to you.
Also, small power producers (e.g. home-owners with roof-top solar panels) are only paid ~ 5p per unit for any ‘surplus’ electricity they produce. This electricity is then sold for around ~14p per unit. We want local people to be able to use this power directly and share this saving between local generators and consumers.
The Idea of Energy Local
By working as a group with your community, you will be able to access a ‘time of day’ tariff, benefit from cheaper prices at periods of low demand and/or high generation and access locally generated renewable power directly. This will help encourage renewable energy, reduce carbon emissions and boost the local economy as local generators will get more money for their power.
Savings from the New Community Energy Model
We aim to achieve up to 15% savings compared to your normal tariff. However your actual electricity bill depends on eg the weather and the amount of electricity you use.
The equipment will use a very small amount of electricity and the cost of this should be more than outweighed by the savings you make.
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.