Co-operative Energy is to hand back a share of its profits to its customers of 1.5% of consumer bills.
The ethical gas and electricity provider that has more than 25,000 customers and celebrated its first anniversary this month has voted at its Annual General Meeting held on Saturday May 19th, to pay a 1.5 pence dividend. The decision means that customers will get a payout totalling £105K or around 1.5% of their annual bill. That’s one of two dividend payouts Co-operative Energy customers receive every year as shareholders of the energy supplier.
Co-operative Energy’s Nigel Mason explained: “The profit share is at the heart of the co-operative movement – we’re owned by our customers so when we do well, everyone shares in the profit. There are no greedy investors helping themselves to the profits. We are all in this together, working hard to control the amount people have to spend on energy to light and heat their homes.”
The profit share was decided by members at the AGM of the Mid Counties Co-operative, the co-operative behind Co-operative Energy. The overall profit distribution for Midcounties members for the year ending January 2012 was £3.3 million. The Co-operative Energy share of that total was £105k, based on the energy supplier’s turnover of £7.2m in the year.
Co-operative Energy members vote to decide what share of profits is returned to customers, what share is invested in the local community and what share is reinvested in the business to fund future developments.
The share of profits returned to members is divided up based on how many points they’ve accumulated as customers in the previous accounting period. Points are awarded according to how much money customers have spent, how often they send in meter readings and for introducing new customers to Co-operative Energy through the refer-a-friend scheme.
The payout comes just days after Co-operative Energy emerged triumphant in the Which? Big Switch auction that saw more than 280,000 people join forces to bid for reduced energy prices in the UK’s first large-scale collective buying scheme.
Nigel said: “It really has been a landmark month for Co-operative Energy. We’ve celebrated our first birthday, we’ve exceeded all the industry expectations and now have 25,000 customers, we’ve won all three categories in the Which? Big Switch auction and now we’re returning money back to customers in a healthy profit share that bucks the market trend. It’s proof that Co-operative Energy is working for customers and changing the face of the energy industry as a whole.”
Customers will receive personalised notification of the amount they will receive over the next few weeks. People who signed up through the Which? Big Switch have until 28th May to complete the switch to Co-operative Energy.