BHESCo's purpose is to generate renewable energy, reduce energy consumption and to tackle fuel poverty in their city.
Shares are withdrawable, subject to funds being available and at the discretion of the Members and Board of BHESCo. Shares are neither transferable nor redeemable.
Shares can only be withdrawn after 3 years, subject to approval from directors.
There is no min. fundraise. Some of the projects have been started due to the time sensitivity of securing FiT.
Interest will accrue from the 1st of the month following the issuance of shares and will be paid out annually upon approval of the members at the AGM as long as funds are available.
Over 1,300 tonnes of CO2 will be saved over the the lifetime of the projects.
That’s the same amount of CO2 emissions as:
The minimum number of Shares which can be applied for is 25 . Shares cost £10 each. You may apply as a group to meet the minimum threshold of £250, for example 5 people can contribute £50 to a consortia that has a membership to the Co-operative.
The maximum possible shareholding is £100,000.
The intention is that members keep their money invested in BHESCo for the long term. As BHESCo aspires to become a community-owned utility, the minimum investment term is three years in order to build a solid income flow for investment in future projects. Co-operative members do not have the right to withdraw share capital, although shares are withdrawable at the discretion of the Board of Directors.
In practical terms, the Co-operative buys back the shares. After 3 years, upon approval of the members and assuming there are sufficient funds, BHESCo aims to make available 10% of its capital to repurchase shares. Investors in the Co-operative will earn interest on their investment at an anticipated rate of 5% per annum. The rate of interest will be reviewed by the Board on an annual basis. Investment in energy co-operatives no longer qualifies for EIS tax relief following withdrawal of this benefit by HM Treasury in 2015. Interest will start accruing from the first of the month following the issuance of shares, but will not be paid out until a decision is made to do so by the Co-op’s members at its AGM. If a shareholder withdraws shares, they may repurchase shares at any time should their financial circumstances improve.
Funds permitting, members who keep their investment with BHESCo for 20 years will receive a bonus 1% interest on their investment from years 10 to 20.
You will only receive interest if the Co-operative generates sufficient funds and the Members approve the payment of interest in line with the Rules of the Co-op. Your original investment will not normally change in value, but it can reduce in value if the net asset value of the shares falls below their original value.
This investment is not covered by any government compensation scheme.
At each AGM, the Directors will recommend the level of interest that they hope to pay for the year ahead. The Co-operative will publish accounts each year.
Following completion of this share offer investors will be given access to the Ethex Registry system, where they will be able to download a share certificate for their investment. Any interest payments will be made by Ethex Registrars by bank transfer. Interest payments, including a downloadable tax statement, can also be monitored through the registry system.
Shares are not eligible for EIS tax relief. They will normally be exempt from inheritance tax providing they are held for two years. You should seek further advice from a financial advisor or accountant on tax matters as appropriate.
As a longer-term investment with an increasing return which can span the generations, parents and grandparents can invest in the Co-operative now for their children and grandchildren; or can invest on their own behalf now and give their investment to their children and grandchildren in their will. Interest earned will be paid to the beneficiary named by the investor in their membership application. BHESCo understands that currently shares in the Co-operative will be treated as exempt from Inheritance Tax. Members should seek independent advice on this point for certainty on their personal position.
Anyone over the age of 16 may apply for shares. Co-operatives, community benefit societies, companies and other incorporated associations may also apply for shares.
As of the 29th February this offer is closed.
The Ethex team are here to help from 9am to 5pm
01865 403 304