Bristol Energy Cooperative

• This investment is not suitable for those who require a guaranteed income or ready access to capital.
• Interest payments are not guaranteed.
• Descriptions of possible returns are illustrative only. There are variable and uncertain factors associated with any energy project.
• If the Society lacks sufficient cash then it may not be possible to withdraw your Shares. Withdrawal of share capital is entirely at the discretion of the Directors, and investors may not be able to withdraw their capital promptly in the event that projects fail.
• Shares in Bristol Energy Cooperative are unquoted securities and may be considered to be riskier than quoted securities and shares. If the Society is unable to meet its debts and other liabilities, you could lose up to the whole amount held in Shares (but no more than that amount).
• Shareholders have no entitlement to receive a share in any surplus of the Society's assets on dissolution following the repayment to members of the nominal value attributable to their Shares because the Society has a statutory asset lock in its Rules.

1. BEC may be unable to raise enough capital to proceed with installations.

Mitigation: BEC could still proceed with some schemes and consider alternative funding sources, including further share raises, to fund outstanding projects. It is currently exploring the possibility of securing an underwriting facility for the offer with an institutional investor.

2. Capital costs of the installations could be higher than anticipated and operational costs may rise faster than anticipated.

Mitigation: BEC will as far as possible negotiate fixed-price contracts for installation and maintenance. Contingency is built into BEC’s cost predictions.

3. Long term project revenue may be below predicted due to climate change e.g. river flows, solar irradiation; the technical performance of equipment; or adverse changes to energy market conditions.

Mitigation: Wherever possible installations will be performance warranted and innovative power purchase agreements sought to protect against the downsides of wholesale energy price fluctuations. There could however be limits to what mitigation strategies can achieve and in worst case scenarios investment returns could be affected.

4. There may be interruptions to the generation of electricity from the installations once built, caused by damage to or mechanic/electrical failure of equipment.

Mitigation: Installations will be insured for damage, breakdown, and loss of income, though the usual ‘Acts of God’ exceptions apply.

5. Previous investments made by BEC and possible future projects in which it invests could affect its ability to pay interest.

Mitigation: BEC has delivered successful projects and generated its target return to members over the last eight years - annual accounts from previous years are available for inspection. The directors will ensure prudent on-going management practices are used to minimise risk. BEC will only make investments in future projects if they meet the required financial performance criteria.

6. The grant for Bristol Community Hydro Scheme does not materialise resulting in the project becoming financially unviable.

Mitigation: Funds raised in Share Offer 7 would be used to finance other BEC projects which could have the net result of delaying future anticipated BEC share raises and /or reducing the target of future raises. A further fall-back position would be to use some of the raised funds to replace more expensive BEC financing. The latter would not be a preferred option but would have a positive net effect on the BEC business.

The environmental and social benefits delivered by the project depend on the performance of the installations themselves and the performance of community projects supported by Bristol Energy Cooperative. In particular:

• Carbon Dioxide reduction targets for the installations may not be met if green electricity generation or energy efficiency saving is lower than predicted.
• BEC may not generate sufficient profits to be able to provide the level of financial and other support to community-led environmental and social projects.
• Community-led projects supported by BEC may not deliver the expected carbon and environmental savings.