Co-op Energy has launched the first tariff that uses entirely community sourced power, in order to support decentralisation efforts and local schemes it says.
All the power sourced for the tariff, entitled Community Power, will be 100% renewable, and sourced directly from community energy projects around the UK, through a Joint Venture between the Midcounties Co-operative and Octopus Energy.
For £5 more than the company’s standard tariff a month, customers can opt for renewable electricity and carbon offset gas from 90 community suppliers.
This includes power from projects such as Westmill Wind and Solar.
Greg Jackson, CEO of Octopus Energy said: “Being able to buy locally-sourced clean, green energy is a massive jump in the right direction for this country’s ailing power grid and carbon emissions.
"Investing in more local energy infrastructure and getting Britain’s homes run by the sun when it’s shining and the wind when it’s blowing can end our reliance on dirty fossil fuels sooner than we hoped.
“Local people investing in local people means that we can all muck in and put the work in to decarbonise where governments and large companies are slow to."
The tariff will cost on average £88 a month for a typical household, and profits will be reinvested back into the community energy projects.
Phil Ponsonby, chief executive of Midcounties Co-operative, said that the company wanted to “go even further” in support of community power.
“Our Community Power tariff is the UK’s only tariff powered by 100% community-generated electricity and we ensure a fair price is paid to community generators.
“Thanks to the co-operative values of The Midcounties Co-operative and the technological capability of Octopus Energy, the Community Power tariff provides customers award-winning service and access to community generation.”
Co-op Energy powers around 300,000 homes, and formed a strategic partnership with Octopus Energy last year. It was initially rumoured that Octopus would acquire Co-op Energy outright, but instead it took ownership of the customers of all three energy supply brands owned by Midcounties Co-operative, including Co-op Energy, Flow and GB Energy but the Co-op Energy brand remained.
The Midcounties Co-operative has retained responsibility for acquiring new customers under that brand. The launch of the new tariff is one of the company’s first major announcements since the strategic partnership.
Octopus Energy has seen a flurry of announcements recently, including launching of a new energy supplier together with the Mayor of London, entitled London Power.