Co-operative Energy is celebrating its first birthday with a profit share for its customers, giving back a total of £105,000.
The electricity provider announced the dividend payout for its more than 25,000 customers today, following its annual general meeting over the weekend.
As one of two payouts every year by Co-op, customers are given ‘points’ depending on how much they spend on their bills and how much those points are worth is decided at the Annual General Meeting (AGM).
Nigel Mason, Co-operative Energy’s Business Development Manager told ELN: “The points will be converted into monetary value at the AGM – just like shareholders in a PLC. We decided a value of 1.5p per point.”
So for a dual fuel customer who spent £1000, they will get 1000 points, he said – or £15.
Energy co-operatives are big news abroad in places like rural areas of the United States but Mr Mason said the model was well suited to the UK.
“It’s a good model for utilities because the general public don’t really understand the relationship between wholesale costs and retail costs. They generally mistrust energy suppliers because they don’t understand where the profits are made. A co-operative completely addresses that,” he added.