Co-operative
Energy
David
Griffiths and Graeme Charles
The
Co-operative Federation of Victoria Ltd and any employees or agents
shall not accept any responsibility for loss or other consequence
which may arise acting or refraining from acting as a result of
material in this article.
Recommended
corrections and additions welcome.Email
comments
Co-operative
Energy Ltd was formed in December 1994 with the aim of developing
a co-operative response to the privatisation of the energy industry.
Co-operative
Energy Ltd. (CE) was formed to promote co-operative
involvement in the newly deregulated electricity industry. It had
a particular focus on small consumers and rural communities. CE
was aware of the hugely significant role fulfilled by electric
co-operatives in delivering electricity to rural Americans.
Electric
co-operatives in the USA are member-owned electric utility businesses,
incorporated under the laws of the states in which they operate,
established to provide at-cost electric service and are governed
by boards of directors elected by members.
· 865
electric distribution and retailing co-operatives serve 36 million
people in 47 states.
· 60 generation & transmission co-operatives are owned by their member
distribution and retailing co-operatives.
· Electric co-operatives serve 12% of the nation's population.
· Electric co-operatives own and maintain nearly 43% of the electric distribution
lines in the USA
.Electric co-operatives employ nearly 60,000 people across the USA
· Electric co-operative assets exceeded $76 billion USA in 2001..
· Co-operatives serve an average of 6.6 consumers per mile of line compared
with 33.5 for investor-owned and 43.7 for publicly owned utilities
Many electric
co-operatives are involved in community development and revitalization
projects e.g.
· Small
business development
· Job creation
· Improvement and/or management of water and sewer systems
· Assistance in the delivery of health care
· Assistance in the delivery of educational services
In 2003
the re were 3143 electric utilities in the USA:
· 930
co-operatively owned
· 213 investor owned
· 2000 publicly owned
The National
Rural Electric Co-operative Association (the national peak body for
electric co-operatives) has been involved in the following formations:
· 1954
National Telephone Cooperative Association
· 1969 National Rural Utilities Cooperative Finance Corporation
· 1986 National Rural Telecommunications Cooperative
· 1987 National Rural Health Network
CE
was formed initially to create interest in the potential role that
co-operatives could fulfill within a privatised electricity industry.
The significant role of electric co-operatives, particularly in rural USA,
chiefly informed this initiative. Generally speaking, most rural
Americans receive their electricity supply via member-owned and controlled
co-operatives. In fact it was the process of developing electric
co-operatives commencing in the 1930's that resulted in rural Americans
gaining access to electricity supply. Prior to this development their
chances of ever being able to enjoy electricity supply did not look
at all promising, as the United States Government had, unsuccessfully,
tried all sorts of inducements to encourage investor-owned electricity
businesses to “connect” rural America.
In
any truly free market small consumers inevitably are at a disadvantage
when it comes to negotiating with suppliers of services. CE firmly
believed, and still does, that successful aggregation of small
consumers was the one self-help tool available.
This philosophy
of aggregation as a means of consumer self-empowerment has been expressed
in the following resolution electric co-operatives in the USA have
adopted on an electric energy consumer bill of rights at the 57th
Annual Meeting of the National Rural Electric Cooperative Association
in March 1999:
o The
right to have access to reliable, affordable and safe electric power.
The availability of reliable, affordable and safe electric power
is a necessity for life issue, as well as an important factor that
drives the country's economic engine. Consumers have a right to expect
reliable, affordable, and safe electric power. Consumers have a right
to expect uniform standards of electric power across the country
as they travel or move. Each sector of the electric utility industry
is different: each is structured differently, financed differently
and, aside from the provision of electric service, organised for
different purposes. All electric utilities receive federal assistance
and the form of federal assistance is different for each sector.
In an era of competition, consumers should expect to have many choices.
However, all energy providers should have the obligation to provide
reliable, affordable and safe electric power. The obligation of lawmakers
is to recognise the differences among electric utilities and to treat
them differently in legislation.
o The right to join together to establish and operate a consumer-owned not-for-profit
electric utility. Current consumer protection depends on government regulation,
local service territories, and voluntary cooperation among thousands of utility
systems are allowed to become huge combines remote from local consumers, and
where energy providers are free to choose the customer class that provides
them the most profit, consumers must have a way to protect themselves. All
electric consumers must have a way to protect themselves. All electric consumers
must have the right to join together to establish and operate a consumer-owned
electric system to provide themselves with electricity according to their own
needs.
o The right of consumer-owned not-for-profit systems to be treated fairly and
recognised as a unique form of business. Electric cooperatives (co-ops) are
independently owned business enterprises incorporated under the laws of the
state in which they operate. Electric cooperatives are owned and controlled
by the consumers they serve. The co-op difference resides in consumer ownership
and control. Thus, for co-ops to be treated fairly by government regulation,
they must be recognised as a unique form of business, different from investor-owned
or community-owned systems. As recognised by the federal courts, since the
consumer owns the cooperative, there is no motive for the cooperative to mislead,
cheat, overcharge or act in any way that is not in the consumer-owners' interests.
o The right to elect representatives to manage their consumer-owned forms of
business to best meet their needs. Electric cooperative consumers (members)
o participate in the operation of the co-op by electing a board of directors
from among its co-op consumers to establish the co-op's basic policies, goals
and strategies, as well as to determine the rates and types of service(s) they
wish to receive. In a competitive environment, consumer-owned and controlled
cooperatives will be a more discipline in the marketplace and a more important
force for innovation as long as local ownership, local control and local autonomy
are not abridged through unnecessary government regulation.
o The individual right to privacy that assures information about consumers
will not be released without their prior express consent. Historically, consumer-owned
cooperatives have advocated levels of information disclosure beyond industry
standards but necessary for judging the performance of utility systems. Recently,
however, discussions on energy policy have included the idea that utility systems
should be required to collect and divulge extraordinary consumer specific information.
Consumers should have the right to determine how information collected about
them is used. Consumer-owned cooperatives should not be required to collect
or to divulge consumer specific information.
o The right to determine the scope of energy services to be furnished through
their consumer-owned not-for-profit utilities. In a competitive environment,
consumer-owned cooperatives, with their local ownership, local control and
local autonomy provide a fast, efficient and flexible way for consumers to
address their needs.
o The right to use consumer-owned not-for-profit utilities to provide additional
services that meet the needs of their consumers and communities. All electric
consumers must have the right to join together to establish and operate a consumer-owned
electric system, if they so choose. In addition, consumers must retain the
right to use their cooperatives as a means to meet their needs and expectations
over time.
o The right to work in cooperation with other consumer-owned entities with
common goals. Consumer-owned cooperatives should be able to work together to
provide a countervailing balance of power in the marketplace to the huge investor-owned
combines that are likely to result from deregulation. Consumer-owned cooperatives
should be able to work together to provide an open window into the operation
of a competitive electric market for all consumers. Consumer-owned, not-for-profit
cooperatives should be able to work together to provide a 'yardstick' by which
all consumers can measure the performance of the market and market participants.
This consumer bill of rights is centered on consumer self-empowerment - not
consumers being protected by the enlightened self-interest of others. Enlightened
self-interest is relevant but not as an alternative to self-empowerment.
Moving
from Theory to Practice
Since
1994 Co-operative Energy Ltd has been advocating the small consumer
energy aggregation option to Government, Opposition and regulators.
Choice
in who provided their electricity supply was phasing-in based on
electricity consumption - commenced in 1994 for large consumers,
in 1998 for customers who used 160 megawatts hour a year or more,
in 2001 for customers who used more than 40 megawatt hours per year
and from 13 January 2002 all remaining customers.
Between
1994 and 2004 Co-operative Energy Ltd has made modest progress despite
a threatened environment and limited resources.
Co-opEnergy
and 160MWh/year Customers
In 1998
Co-operative Energy Ltd organised a purchasing group based on aged
care agencies who had a choice of electricity retailer because their
electricity consumption was at least 160 megawatt hours per year.
This work was facilitated by Aged Care Victoria and the Commission
for Mission, Uniting Church.
Twenty
eight agencies authorised the co-operative to negotiate contracts
on their behalf. There were discussions with a further 12 agencies
who decided not to authorise the co-operative to act on their behalf.
Of the 28 participating agencies:
22 (78.57%)
had contestable sites
6 (21.43%)
had no contestable sites
Co-operative
Energy Ltd sought quotes from six retailers:
Eastern
Energy
Energy 21
ETSA
Great Southern Energy
Powercor
United Energy
Eastern Energy offered not only the lowest price but also value-added services.
Eastern Energy offered a peak price of 2.2c and an off peak price of 1.17c
In addition, Eastern Energy was offering:
A free walk through energy audit.
A Thermal Imaging Survey of mainswitchboards.
A $500
contribution towards the $1000 smart meter for consumers in the Eastern
Energy area and $500 for advertising for those not in the Eastern
Energy distribution area.
The contract
was for a three year period that locked-in prices.
Eighteen
(64.28%) of the 22 agencies agreed to sign with Eastern Energy. These
18 agencies had 22 different sites. The average savings achieved
for the 18 agencies was 32%. This compared favourably with a 1998
survey by the Australian Chamber of Manufactures of 410 large businesses
who were contestable before 1 July 1998 and concluded that there
had been average savings of 26%.
The actual
savings for each agency depended on the network charges of the different
distribution companies, the previous tariffs and the ratio of peak
and off peak use. The highest saving was 57% and the lowest 5%. The
actual savings for each were 57%, 46%, 44%, 40%, 39%, 39%, 39%, 37%,
31%, 31%, 31%, 30%, 30%, 25%, 25%, 28%, 28%, 22%, 21%, 20%, 12%,
10%and 5%. Of the four agencies who did not sign the savings being
offered by Eastern Energy were 36%, 40-45%, 51% and 57%.
Energy
Aggregation Initiative
The Energy
Aggregation Initiative was jointly organized by the Co-operative
Federation of Victoria Ltd and Co-operative Energy Ltd between 31
July and 3 August 2000. The workshop component was co-sponsored by
the Victorian Local Governance Association.
The overriding
objective of the Energy Aggregation Initiative was to advance knowledge
of the energy aggregation for small consumers.
The elements
of the Energy Aggregation Initiative were:
· The
visit to Australia of energy co-operative consultant Robert L. Church.
· A small consumer energy aggregation workshop.
· Meetings with the Energy Industry Ombudsman, the Government, the Opposition,
a TXU seminar and interested parties in North East Victoria
· Publishing of two booklets Group
Buying Power and New Government
New Direction New Energy.
The initiative
was financed by TXU Retail ($5000), Consumer Business Affairs Victoria
($2000), ACCORD that agreed to share the costs of the energy co-operative
consultant and $500 contributed by the Victorian Local Government
Association and a workshop registration fee of $50 for members of
CUSCAL, the Co-operative Federation of Victoria Ltd, the VLGA and
the Australian Institute of Engineers and $100 for others. Co-operative
Energy Ltd contributed $160 cash and $900 labour with additional
funds dependent on final cost requirements.
Due to
Co-operative Energy Ltd's special relationship with the Plumas Sierra
Co-operative in California fees of approximately $5000 were waived.
The Workshop
attendance was disappointing with 44 attendees - after a mailout
to 300 co-operatives, 57 credit unions, 150 VLGA members, 2000 Australian
Institute of Engineers (AIW) members and 150 others. Unfortunately,
the VLGA notification was emailed one week before the workshop and
to a partial list of members instead of the full list of 500 members.
The AIE was also emailed late six days before the seminar. The AIE
contacted us on hearing about the seminar.
Outputs
· At
the workshop EPU (Department of Treasury and Finance) and ORG committed
themselves publicly for the first time to discussing aggregation
of small consumers.
· The
meeting in North East Victoria agreed to form an energy purchasing
co-operative based on a telecommunications co-operative, a regional
credit union and a small business group with public support from
local government.
· Newspaper
articles appeared in The Age and the Border Mail - Energy co-ops
mean savings (Border Mail, 3 August 2000), Push for power unity (Border
Mail, 25 July 2000), Strength in numbers for energy customers (The
Age, 24 July 2000) and Buying power requires numbers (The Age, 7
August 2000). The July/August issue of National Co-op Update published
a front-page story as well as a four-page supplement on the workshop
- sponsored by TXU Retail.
· The
workshop was profitable with income exceeding costs. Budgeted income
was $2000 and actual income was $2812.40
· The
energy co-operative option was exposed to a series of meeting with
numbers in attendance in brackets - Energy Ombudsman Victoria (6),
Parliamentary Secretary Natural Resources and Environment , Office
of the Regulator General, Victoria (10), Together, we have the power
workshop (44), Albury meeting (4) and TXU workshop (17).
· Booklets
distributed - 146 Group Buying Power and 129 New Government New Direction
New Energy between 31 July and 3 August 2000.
In
the short-term, the Energy Aggregation Initiative moved the issue
forward in a very practical way - creating a more favorable climate
for small consumer energy aggregation. The Initiative was an important
contribution to a developmental process undertaken by Co-operative
Energy Ltd since 1994. While understandable, it is regrettable that
this contribution is not necessarily understood and accepted and
that the co-operative was not able to build-on this. Discussions
were initiated, for instance, on the secondment of a USA energy co-operative
executive to Co-operative Energy Ltd on a success-fee basis. This
remained, however a speculative notion.
Working
Within
The co-operative
has been involved in the following working groups of the Office of
the Regulator-General, Victoria (now the Essential Services Commission):
· Contestability
Reference Group (Electricity)
· Minimum Standards Working Group (Electricity)
· Minimum Retail Standards Working Group (Gas)
The co-operative
has made the following submissions to ORG's distribution pricing
review and minimum retail standards review:
· Capital
Consultation, Submission to Distribution Pricing Review Consultation
Paper No 4, 4 June 1999
· Competition Standards, March 2000
· Consumer Aggregation, Prepared for Gateway BEET Inc, 1999-2000
· Contestability Benefits & Costly Risks, Submission to Distribution
Pricing Review Consultation Paper No 2, 10 February 1999
· Co-op Power is Community Power, Prepared for North East Victoria Energy
Purchasing Group, 1999-2000
· Group Buying Power Bibliography, February 2000
· Small Consumer Empowerment (Revised) 2000
· The Energy Trade Off, February 2000
· The Form of Price Control and Consultation, Submission to Distribution
Pricing Review Consultation Paper No 3, 22 January 1999
· 2001 Electricity Distribution Price Review Framework and Approach, Submission
to Distribution Pricing Review, 13 July 1998
· 2001 Electricity Distribution Price Review Framework and Approach, Submission
to Distribution Pricing Review, 27 July 1998
By the
end of 2000, however, Co-operative Energy Ltd reviewed its participation
in the processes of the Office of the Regulator-General, Victoria,
and concluded that there was a limited effectiveness primarily due
to two factors (a) the Victoria Government was not facilitating a
focus on aggregation and (b) the consumer representatives involved
in the decision-making processes were not interested in the potential
of aggregation. It was decided, therefore, to withdraw from active
participation.
The co-operative
has also published the following reports:
· Consumer
Aggregation, Prepared for Gateway BEET Inc, 1999 - 2000
· Co-op Power is Community Power, Prepared for North East Victoria Energy
Purchasing Group, 1999 - 2000
· Group Buying Power Bibliography, February 2000
· Regional Energy Options, North East Victoria Energy Purchasing Group,
2000
· Small Consumer Empowerment, 1999
· Union Energy: Empowering Small Consumers, Union Energy Project, 2000
The co-operative
is a member of the Co-operative Federation of Victoria Ltd
and was a member of the National Rural Electric Cooperative Association (USA)
and the Victorian Local Governance Association
The
North East Project
The formation of OUR ENERGY Inc. (OE) in February, 2002 was preceded by several
years of work by Co-operative Energy Ltd. (CE)
CE
foundation chairman Graeme Charles, was resident in North East
Victoria.
In
the latter part of 1998, with the date for Full Retail Contestability
(FRC) set-down for January 2001, CE began a series of approaches
to local government across NE Victoria.
CE suggested that they (local government) could play an important
facilitating role in assisting their constituents to aggregate
in order to effectively compete in the new electricity market-place.
The suggested rationale being firstly, as an economic development
exercise, and secondly, as a service to residents.
In
1999 CE was engaged by a group of North East Victorian councils
to prepare a report on the likely outcomes of successful aggregation
of electricity consumers across that region. Eventually, in March
1999, CE presented a formal proposal re the formation of a North
East Victorian Energy Users Co-operative to the Cities of Wodonga, Wangaratta,
and Delatite Shire Council.. The cost of this proposal was $24,000.
CE had by this time received an offer of $12,000 funding to assist
the establishment of an energy purchasing co-operative in North
East Victoria via the Uniting Church, Hotham Parish Mission. CE offered
to use the $12,000 from the Uniting Church,
Hotham Parish Mission to match a similar contribution from the
Councils.
In
May 1999, CE and the Councils entered into a Heads of Agreement
(see Attachment 1) whereby CE was engaged as consultant to undertake
Phase One of the development of a North East Energy Purchasing
Group. (The participating
Councils were subsequently joined in the Project by the Alpine,
Indigo and Towong Shires.)
The
tasks set out in the Phase One Heads of Agreement were:
1.
Investigate and identify options for structuring
the Energy Users body.
2.
Development of appropriate membership recruitment
campaigns:
·
Domestic customers
·
Small business (less than
160 mWh per annum consumption)
·
Large customers
3.
Implementation of recruitment campaign for
larger customers.
4.
Conduct preliminary discussions with potential
suppliers. Consider the two most obvious options.
Option 1.
Enter into an early agreement with a preferred
supplier, who would have a vested interest in assisting with the
recruitment of members.
Option 2.
Consolidate the membership before entering
into any firm arrangements with suppliers.
Identify likely financial rewards on offer
from potential suppliers.
5.
Develop strategic alliances that could strengthen
the Project. E.g. Uniting Church,
local Credit Union, Other local government
and Statutory Authorities.
6.
Advocacy and lobbying on behalf of members.
7.
Explore possible sources of external funding
for the Project.
8.
Monthly meetings with Reference Group overseeing
the Project.
Subsequently, a
series of reports were prepared for the councils. The reports demonstrated
a significant positive economic effect for the region if enough
consumers could be aggregated and as a result of that, electricity
tariff reductions of as little as 5% could be successfully negotiated.
In
July 1999 – Phase One –Stage
One Report to Councils included
A. Financial Estimates and Modelling.
B.
Potential Price Reductions/Savings Achievable
through Aggregation.
C.
Potential Consumer Membership of the Energy
Purchasing Organisation.
D.
Likely Costs of the Project.
E.
Potential Sources of Funding re Estimated Costs.
In
August 1999: Report to North East Victorian Councils on Recommended
Structure for an Energy Users Purchasing Organisation.
In
February 2000: Regional Energy Options prepared for North East
Victoria Energy Purchasing Project.
In
July 2000: North East Energy Purchasing Project – Phase One
Final Report to Councils recommended that the participating
Councils together with identified non-local government organisations
proceed with Phase 2 the formation of an energy-users co-operative. The
co-operative would not, certainly initially, become involved itself
in either purchasing or selling electricity.
Following
a meeting with some of the Councils in September 2000, CE agreed
to undertake the preliminary work required for the incorporation
of a co-operative and to provide an Action Plan by the end of October.
It was agreed at that meeting that something like $1000 capital
per founding member together with the balance of funds remaining
from Phase One ought to be sufficient to move the co-operative
forward beyond its formation stage for a period of between three
to six months. It was envisaged that the founding members would
most likely be CE, the five participating NE Vic councils and the
WAW Credit Union.
In
October 2000: North East Energy Purchasing Project – Phase
Two Proposal was presented. An Action Plan was presented
early November 2000. The plan proposed amongst other things that
a Co-operative Formation Meeting would be held in December 2000.
A
co-operative formation meeting was held on 8th December
2000 at the Indigo Shire Offices and attended by representatives
from three of the five participating councils, WAW Credit Union
and CE.
It
soon became apparent that most councils were reluctant to become
members of the proposed co-operative. The provisions of Sec.193
of the Local Government Act 1989 were put forward as presenting
a major hurdle that none of them was interested in attempting to
jump for the purpose of this exercise.
Whilst
remaining supportive, the councils were reluctant to become directly
involved in the formation of an energy aggregation vehicle, mainly
because of the provision of certain sections of the Local Government
Act. However CE had in the meantime held discussions with WAW Credit
Union which has a member and branch network across NE
Victoria. They agreed to support the initiative to
provide a vehicle through which electricity consumers could aggregate
their electricity purchasing and negotiate as a group with retailers.
Subsequently
the outcome of the meeting was:
·
It was unanimously agreed
that Councils would prefer not to become members of a newly formed
energy purchasing co-operative.
·
It was further agreed that
WAW Credit Union would proceed with the project and that councils would
continue to support its development in a number of ways.
·
Councils would place their
energy purchasing with the WAW sponsored co-operative. Including currently
contestable sites as they become available, and all other sites as
they become contestable.
·
Councils will when and where
appropriate, publicly support the co-operative, and announce their
commitment to the above.
·
Councils will make their normal
ratepayer communication channels available to the co-operative.
·
The balance of funds from
Phase one will be transferred to the WAW Credit Union as “sponsor” of
Phase two, and each council would contribute an additional $1000 to
advance the Project.
·
A percentage of any earnings
derived by the co-operative would be allocated to some form of community
development trust, which councils could be involved in as trustees.
In
May 2000 discussions had commenced with the WAW Credit Union
which had a branch network that extended across the target region
of the Project and into the Albury, NSW region of New
South Wales. WAW membership itself was
around 20,000 and Graeme Charles had identified WAW as being
potentially crucial to the success or otherwise of the Project.The
various councils contributed a total of $19,000 and the WAW Credit
Union provided in-kind support to OE estimated to at least having
matched the councils contribution.
By
the end of April 2001 all participating councils with the exception
of the Delatite Shire had formally confirmed their continued
support for the Project as outlined above. Delatite Shire Council
advised that they had been approached by their local credit union,
North East Credit Union proposing the development of a similar
energy purchasing co-operative in the Shires of Delatite, Murrundindi
and Strathbogie. As a result they could not commit themselves
to moving forward with the North East Energy Purchasing Project
at that time. Delatite Shire never rejoined the Project and nothing
ever eventuated from the approach that had been made by the North
East Credit Union.
Graeme
Charles, Chairman of CE was engaged on a part-time basis to project
manager the aggregation effort. OE was incorporated as an association
and launched in February 2002, consumers were invited to complete
a form authorising OE to negotiate on their behalf with retailers.
On the basis of earlier informal discussions with retailers, it was
decided that OE's target would be 5000 signings. If the target were
not reached within a three to six month period, the future of OE
would be reviewed. By August 2002 the aggregation had grown to include
some 465 businesses, 300 farms and 2800 residential consumers. To
these numbers could be added the loads of the various councils.
In
September 2002 a formal Request for Proposals (RFP), was sent to
all electricity retailers licenced to operate in Victoria No
response that complied with, or even addressed the majority of
issues contained in the RFP was received. Numerous attempts to
generate serious negotiation with retailers all failed. No retailer
was prepared to discuss our request and in essence we were after
many months of trying, reluctantly forced to conclude that we were “flogging
a dead horse”.
This
experience needs to be set in the context of customer switching
overall. According to the Essential Services Commission, there
are more than 2.2 million electricity consumers in Victoria -
2.1 million (95%) are small consumers using less than 160 MWh
per year. In Special Investigation: Review of the Effectiveness
of Full Retail Competition for Electricity - Final Report (September
2002), the Essential Services Commission reported that between
13 January and September 2002 39,461 (1.9%) of domestic and small
business customers had switched retailers and that 18,059 were
waiting to be switched (0.8%.
As
a result of this monumental display of retailer inertia, OE can
only offer its own suggestions as to why having aggregated thousands
of consumers, it could not elicit any offers from retailers. Probably
the most significant comment to make is that the sort of initiative
undertaken by OE has not been a true “aggregation”.
True aggregation can only occur when an aggregator can negotiate
on behalf of its constituents whilst being in a position to guarantee
that those constituents will take up the resultant negotiated outcome.
This is not the case currently and is a matter that requires the
serious and urgent attention of industry regulators and consumer
representatives.
To
what extent the role of regulators in the market place e.g. price-capping,
Net System Load Profiling is influencing retailer responses to
aggregation efforts OE can only ponder. In the meantime would-be
aggregators are caught in “no-mans land”, operating
within a system that is neither a tightly regulated monopoly, in
which case there would be no need for aggregation, nor a true open
market-place. If any future aggregation efforts are to be successful,
electric industry regulations and legislation will have to include
remedies that address the many existing aggregation barriers.
Conclusion
Over
a ten year period Co-operative Energy Ltd has persisted and the
survival of this persistence has been an achievement in itself. It
was noted at the beginning that Co-operative Energy Ltd. (CE)
was formed to promote co-operative involvement in
the newly deregulated electricity industry with a particular
focus on small consumers and rural communities. CE was aware
of the hugely significant role fulfilled by electric co-operatives
in delivering electricity to rural Americans.
The
analysis, however, has revealed primarily a history of incremental
ad hoc achievements. There have been a number of useful but limited
initiatives. The most important achievement of Co-operative Energy
Ltd was the contribution to the development of Our Energy.
Since
2000 the focus of Co-operative Energy Ltd was to facilitate the
development of Our Energy and the co-operative did not become
involved in any substantial energy initiative outside of Our
Energy. It abandoned its attempts to influence the Essential
Services Commission which was perceived to be a captive of the
industry and professional consumer groups. The principals of
Co-operative Energy Ltd - the Chairman (Graeme Charles) and Secretary
(David Griffiths) became actively involved and variously involved
with the Co-operative Federation of Victoria Ltd and their co-operative
efforts refocussed on the Federation to the detriment of Co-operative
Energy Ltd. A hope that co-operation between Co-operative Energy
and the Federation would stimulate the co-operative movement
to become involved in the energy aggregation initiative was never
realised. Some co-operatives were variously interested in the
possibility but this interest was not sustained and both Griffiths
and Charles' work with the Federation has focussed on the development
of australia.coop and co-operative education.
First
published: April 2001
Last updated: 08-Aug-2005
