IECBS will pay sums annually to IET under the terms of a Deed of Covenant. The amounts payable will be calculated from IECBS profits, i.e. revenues less operating and administrative costs, rent, contribution to shareholder repayment fund, loan interest and repayments, interest to shareholders and tax. The amount paid to IET is deductible from any IECBS corporation tax liability, and is expected to be £60-80,000 p.a.
A ‘Needs Analysis’ in support of IET’s application to the Big Lottery for £180,000 to cover grid upgrade costs was conducted by SKS across the Islay, Jura and Colonsay communities. Its key findings were:
• The three priority areas for funding are: energy efficiency & relief of fuel poverty; supporting local businesses (community not for profit businesses a priority); and older people
• Strong support for IET receiving a proportion of the turbine income to continue the development of renewable energy projects for the benefit of the community
• Significant support for the development of a Community Endowment Fund, which would invest in local economic projects, particularly in the renewable energy sector
To support these priorities, three funding streams are proposed:
1. Community Investment Fund, offering large-scale investment in community owned operations which will generate further income
2. Small Grants fund, directed towards community organisations which meet the needs identified in the community consultation
3. Fund for improving home energy efficiency and relief of fuel poverty, which will offer support for vulnerable clients in accessing government grants and schemes as well as offering grants and emergency payments to eligible applicants
Although the allocation of funds for community benefit will be the responsibility of IET, its Board will take account of recommendations made by an independently appointed Grant Advisory Panel (GAP). Procedures and processes for the distribution of funds, including applications and decision criteria, are currently under discussion.