ECOE plans to move energy advice work to a separate charity

Healthy Homes for Wellbeing energy advice activities are set to happen as part of a separate charity

Exeter Community Energy (ECOE) is finalising plans to move its energy advice work, including the award-winning Healthy Homes for Wellbeing Project, to a charity. Following much deliberation and fact-finding by the board of directors and others, we are doing this by transferring the activities to an existing charity, the Climate Action Hub Exeter charity.

Climate Action Hub Exeter previously ran a building in Princesshay for communication and outreach. The energy advice services Healthy Homes and Retrofit are looking to move into physical premises. Having premises that could be shared between our energy services work and the objectives of the Climate Action Hub would suit both parties. We intend that two ECOE directors will become trustees of the charity, to help maintain our existing strong connections.

ECOE retains its renewable energy projects, because our Community Benefit Society (CBS) structure suits raising funds for capital investments. We will retain the income generated from them and continue to pay out interest to members and donate from our community fund. However, CBS status suits energy advice work less well than charity status. This has become increasingly problematic as the amount of revenue we’ve received for energy advice has grown.  The entire ECOE organisation couldn’t become a charity because the law requires different rules for a CBS and a charity and it’s not possible to convert between the two.

Why?

ECOE’s energy advice work was set up to tackle the challenges of fuel poverty in Exeter and local area.  The award-winning work of the Healthy Homes for Wellbeing Project and more recently our Retrofit services has been very successful.  The size of the team has grown substantially but there is more we could do to tackle the fuel poverty challenges.

Reasons for the decision:

1. Some grant-based funders only give money to charities, in particular the Energy Redress Funding scheme.  This scheme, run by the Energy Saving Trust, distributes millions of pounds. Altogether, they get the funding from energy companies that have breached OFGEM rules.
2. Charity status enables potential exemption from Business Rates on property, and at the very least 80% mandatory tax relief on business rates, corporation tax relief, and gift aid on donations.
3. A new premises for the Energy Advice Centre will provide a permanent location to host energy services.
4. Funders don’t always understand that Healthy Homes is a separate part of ECOE’s business model. Also, they are not keen to fund fuel poverty work through grants because of the assets we hold.
5. As our income grows we will exceed certain funding eligibility thresholds. Therefore, separating out renewable energy generation gives us more time until that happens.
6. The Healthy Homes team has difficulty explaining what ECOE and community-owned energy is to residents, including people in fuel poverty. This sector will better under stand the charity status.
7. Partners and residents in areas that Healthy Homes serves outside Exeter tell us that the Exeter name is a barrier. Generally, they assume we only serve Exeter.
8. Partners and residents tell us there is confusion about the link between the Healthy Homes project and our solar projects.

The board of directors, energy advice team and external advisors are continuing to work through all the activities needed to prepare for the transition and decided now was the time to disclose the plan to our membership. We welcome any thoughts. Please email us at info@ecoe.org.uk to tell us what you think.