56% increase in wind farm income for one of the UK’s largest landowners
By Accounting for Energy – (2 min read)
Renewable energy makes good business sense – it's a great way generate income, create jobs, and have a positive impact on the environment, which is why so many businesses and landowners up and down the country invest in it. However ensuring you are receiving accurate land rent payments for these investments is far from simple, and is a challenge even for the most experienced in-house legal and accounts teams.
This is where AfE come in. We use a wide range of metrics and take it account a host of economic factors, as well as government policy, to iron out the complexities attached to these payments. Our expertise allows us to spot errors that are often overlooked, even when the highest financial diligence has been carried out.
One of our clients – one of the biggest landowners in the UK – saw an annual income rise of 56% after we verified their payments. They had been receiving regular royalty payments since the wind farm’s commissioning date, but the accounts team had no checking the accuracy of these fees.
They have kindly given us an insight into how our work has impacted their organisation. To maintain their confidentiality, the organisation has not been named.
How do you feel about your original lease agreement? On reflection do you feel it was fair?
The management team felt it represented best value at the time. We’re obliged to our stakeholders to obtain best value so the lease would have originally been negotiated with that in mind.
Your revenue doubled after AfE reviewed your lease, were you surprised and what impact has this recalculation had?
We were surprised. Any uplift in value makes a difference and there has been an operational impact on projects that are at the heart of what we do. It’s always good to have things checked.
What were your thoughts on Accounting for Energy when you first heard about them?
To be honest we knew nothing about them. We referred their proposal to our land agent, and they had a look at it and thought it can’t be a bad thing. It’s actually a good thing to have checks and balances and we benefited from what must have been incredibly painstaking work! We asked ourselves if going down this line would be a good use of all our time and resources, and our agent felt that yes, it would be.
Why would you recommend Accounting for Energy?
Their communication was very good and there was a lot of clarity. This wasn’t easy to work through, and a lot of time has gone by and the case has gone through a lot personnel. It’s a case that had to be built up piece by piece so I would recommend Accounting for Energy for their perseverance. You don’t know what you’ll find and what the outcome will be, this could be something that needs more regulating if there are more instances of this happening than people are aware of.
How important is creating a greener environment to your organisation?
We have a commitment to sustainable issues. For example, we’ve had a programme where we’ve put solar panels on lots of our buildings so people can benefit from the cheaper electricity and reduction in the carbon footprint. We are committed to sustainable solutions for the running of the organisation, it is good husbandry, and ties in with our values.
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