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    What We Do

    At Accounting for Energy, our vision is to build a mutually beneficial, rewarding marketplace
    for landowners who have renewable energy projects on their land.

    That’s why all our services help to increase transparency in this new and largely unregulated
    industry – while equipping and empowering landowners and the other people we help with
    the insights they need to benefit fully from their renewables projects.

     

     

  • Tag Archives: revenue


    How will the interest rate rise affect landowners?

    By Travis Benn – (3 min read)
    The recent interest rate increase has caused a stir among the business community.  Despite being only the second rise in nine years, some feel the move by the Bank of England was ill-judged against the backdrop of an uncertain Brexit. What’s the impact on landowners’ land rent payments? Read on to find out.

    Landowners’ rent payments are generally made up of two fees: Minimum rent which is a flat rate linked to inflation; and turnover rent which is based on energy performance and is affected by interest rates.

    The interest rate rise from 0.5% to 0.75% is expected to have a positive effect on rent payments and landowners can anticipate an increase in their earnings for the following reasons:

    1. There is still an expectation that inflation, as we explained here, will rise as a result of higher wages in the future leading to a rise in minimum rents.

    2. Many landowners receive a fee based on turnover rent which is linked to a percentage of their electricity producer’s sale price. Given that electricity prices are likely to increase based on higher interest rates, landowners should also see an increase in their turnover based rent payments because of this.

    3.Higher interest rates would result in higher interest payments if a future rent audit reveals that any rents are underpaid.

    There is talk of there being another interest rate rise in roughly 12 months, which could be a green shoot of brighter days ahead. However experts warn that we are unlikely to see rates reach the levels that were experienced pre-recession, so even if your payments do increase over time, the hike will be gradual.

    Of course there are many factors to consider that could impact your specific contract, and of course we are still yet to see how Brexit will play out, but at least for now your payments won’t be adversely affected by the recent interest rate rise.

    For further information, please contact:

    Travis Benn

    Co-Founder

    0203 375 6144

    Share

    Renewable energy offers financial opportunities for waste and energy companies

    By Accounting for Energy – (3 min read)

    BEIS figures declared 2017 the greenest year so far, with pre-Christmas figures showing renewable electricity generation up by 5% year-on-year. But what does this mean for investors and operators? And how does the financial case for renewables stack up against traditional fossil fuels?

    In the past, renewables faced two major barriers when it came to investment – appetite, and cost. Many investors were put off by what they perceived to be the uncertainty of renewables projects. Energy storage, and transmission and siting challenges were often listed as problems and, quite simply, backers were more comfortable with the familiarity of fossil fuels. Thankfully, change has come. These days, green finance is not only becoming routine, but research by HSBC shows that 68% of global investors are planning to increase their low carbon investments.

    Capital costs for renewables sometimes seem high. However, the majority of the finance is called for at the build stage and, once up and running, plants are extremely cheap to operate. If costs are assessed over the lifespan of the facility, wind and solar offer one of the most cost-efficient options for energy generation. Add to this the fact that capital costs for hardware such as photovoltaic modules (which dropped by 80% in 10 years) have fallen solidly year on year, and the investment looks much more appealing.

    Where fossil fuel technologies operate within an established array of infrastructure and skill, renewables – which tend to be smaller scale, decentralised operations – are relatively new technologies which also require connecting up to wider infrastructures. A growing army of expertise and rapid advances in equipment are overcoming these challenges and helping to make renewables a viable financial proposition.

    According to a report from the World Economic Forum, solar and wind have already achieved parity with fossil fuels in more than 30 countries. Ten years ago, solar generation cost around $600 per MWh, compared with $100 for coal and natural gas. Today, solar has reduced its costs to $100, with wind at $50 – half the cost of established fossil fuels.

    At some point in the 2020s, newly installed renewable projects are expected to undercut the cost of producing electricity from traditional plants, at which point there is likely to be an even faster swing to clean energy.

    This could be the incentive needed to drive change in the UK which, despite making impressive inroads to carbon reduction, is still falling short of its legally-binding climate change targets.

    To check whether your land rent payments are accurate, get in touch with our specialists auditors today.

    Share

    The new tax year: how your land rent payments are likely to be affected

    By Travis Benn – (4 min read)

    “End of Tax Year” evokes all sorts of emotions in people – for some, the thought of the paperwork and facing their accounts fills them with dread, while for others it’s a motivating factor to finish on a high or start a new cycle with a fresh sheet. This time of year also has an impact on land rent payments, and there are a number of factors to be aware of to ensure you are getting the best negotiation. In this article we outline three situations that could affect your land rent payments in the coming tax year.

    Firstly, it’s important to understand that payments are calculated using a minimum rent fee which is a flat rate, then there is the turnover rent, which is based on energy output and activity.

    Inflation

    It’s expected that inflation will go up at some point in the year which will mean rent payments are likely to be static. The normal expectation is that rent payments go up by about five percent with inflation, but if there is an increase, the most likely scenario is that payments will freeze, and for those who do see an increase, it’ll only be by a percent or two. This is because the minimum rent payment is linked to inflation and increases at a slower rate when interest rates rise, and turnover rent is affected by energy prices which would go down, so the money being made from the energy source would be less.

    Brexit

    Brexit could actually have a positive effect on both rent payments, especially if we get a hard Brexit. As the value of the pound decreases and the price of imports increase, the cost of electricity will see a hike, as will the cost of living which will in turn affect inflation and minimum rents.

    We currently import electricity from the Internal Energy Market and once our relationship with the EU changes, this may need to be renegotiated. We could find ourselves in a position where there is more demand in the UK for wind energy and electricity, which will increase turnover rents

    The Budget

    Based on the 2017 Autumn Budget announcement farmers will keep more of their money in the new tax year. The Personal Allowance will go up by £350, while the basic rate of income tax goes up by £1,000 to £34,500. In addition, self-employed workers who pay Class Four National Insurance will be able to keep £1,350 more of their money before falling into the higher earnings threshold.

    Here’s an example of how the budget might affect farmers:

    Scenario One

    A farmer whose wind farm produces £11,850* will get an extra £88.20**:

    – This year they keep £11,300.06.
    – Next year they keep £11,388.26.

    Scenario Two

    A farmer whose wind farm produces £46,350* will get an extra £263.70**:

    – This year they keep £35,619.50.
    – Next year they keep £35,883.26.

    It’s hard to assess what these factors combined will mean for land owners, but given that rent payments increase annually, landowners will be affected in some way at different times. Ensuring you are receiving accurate returns from your renewables investment can be a challenge as it is – we identify underpayments in 75% of our royal audit reviews – and this coupled with the any of the above factors can add another level of inaccuracy. If your rent payments contracts are due for review soon it’s worth considering whether you can renegotiate a better deal.

    * Assumes no other income. Applies to those who are self-employed but not in receipt of married or blind persons allowance.
    ** These figures are estimates.

    For further information, please contact:

    Travis Benn

    Co-Founder

    0203 375 6144

    Share
  • Testimonials

    • “We found your report informative and easy to read, it was good to see how the wind farm is performing
      and we were pleased with the results of the audit”

       

      Mark Charles,

      Exeter

      Share
    • Sara James,

      Durham

      Share
    • Martin Roberts,

      Peterborough

      Share
    • Tracy Maria,

      Cumbria

      Share
    • David Terrence,

      Devon

      Share
    • “In every instance Accounting for Energy have identified and recovered shortfalls in rent for my clients. Not only do the landowners receive back payments but they are also keen to show developers that they are being held to account.”

       

      Chris Thyer MRICS FAAV

      Land Agent, GSC Grays

      Share
    • “We don’t have comparable leases in renewable energy meaning there are few examples to draw from, so it’s always good to have checks and balances in place. We would recommend Accounting for Energy for their diligence.”

       

      Ali Walker

      Property Co-ordinator, Bath and Wells Diocese, Church of England

      Share
    • “The information provided by the turbine owner seemed to be comprehensive. The issue comes with knowing if all the data is complete and the audit was able to identify areas that we should have been receiving royalties on.”

       

      Ben Ardern

      Financial Controller, Dewlay Cheesemakers

      Share
    • “I worked with Travis on a set of arbitral proceedings to recover unpaid royalties on behalf of the landowners of a large renewable energy site. I was very inspired by his passion for his industry and his tireless commitment to getting the best results.”

       

      Sarah Bishop,

      Commercial Disputes Solicitor

      Share
    • “Travis is the go-to person for renewable energy landowner royalty payments. He gets into the details of a case, and is very tenacious in identifying and recovering any monies owed to landowners.”

       

      Grant Jones,

      Chartered accountant, solicitor and practicing arbitrator

      Share
    • “I would recommend Accounting for Energy because they are clearly experts in this area, and they were good to work with. It was an easy
      decision to get them on board because we really didn’t have the expertise or the time to be trawling through the lease and power purchase agreement.”

       

      Nick Kenyon,

      CEO, Dewlay Cheesemakers

      Share
  •  

    Before Accounting for Energy, Freccia was a successful entrepreneur in the healthcare space. When Travis told her about the challenges in the renewables sector, she was convinced that they could use their combined expertise to help landowners.

    Fuelled by her passion for business and making a difference to landowners, Freccia then developed her ideas for Accounting for Energy’s services, strategy and pricing in a way that would best serve their clients.

    She is now responsible for all the business’ operational activities and client services, and her passion for helping landowners in the UK continues to drive her work.

     

     

    “With the threat of climate change to our planet looming, my mission is to develop a business that helps build the infrastructure of the renewable energy market. I also want to make sure those who are invested in it receive fair returns. As this is still a new industry, we are able to help to avoid the pitfalls of other more established industries and by doing so, help the wider green economy.”

     

    Freccia Benn
    Co-Founder

     

    0203 876 0324

     

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  • Our Clients

    Our Clients

    • “We found your report informative and easy to read, it was good to see how the wind farm is performing
      and we were pleased with the results of the audit”

       

      Mark Charles,

      Exeter

    • “Job well done”

       

      Sara James,

      Durham

    • “Early non-payment discovered so very happy with outcome”

       

      Martin Roberts,

      Peterborough

    • “Excellent service. The review has given me peace of mind”

       

      Tracy Maria,

      Cumbria

    • “We found the report very thorough and really interesting and were pleased
      that the payments have been corrected and appreciate your help with this very much”

       

      David Terrence,

      Devon

    • “In every instance Accounting for Energy have identified and recovered shortfalls in rent for my clients. Not only do the landowners receive back payments but they are also keen to show developers that they are being held to account.”

       

      Chris Thyer MRICS FAAV

      Land Agent, GSC Grays

    • “We don’t have comparable leases in renewable energy meaning there are few examples to draw from, so it’s always good to have checks and balances in place. We would recommend Accounting for Energy for their diligence.”

       

      Ali Walker

      Property Co-ordinator, Bath and Wells Diocese, Church of England

    • “The information provided by the turbine owner seemed to be comprehensive. The issue comes with knowing if all the data is complete and the audit was able to identify areas that we should have been receiving royalties on.”

       

      Ben Ardern

      Financial Controller, Dewlay Cheesemakers

    • “I worked with Travis on a set of arbitral proceedings to recover unpaid royalties on behalf of the landowners of a large renewable energy site. I was very inspired by his passion for his industry and his tireless commitment to getting the best results.”

       

      Sarah Bishop,

      Commercial Disputes Solicitor

    • “Travis is the go-to person for renewable energy landowner royalty payments. He gets into the details of a case, and is very tenacious in identifying and recovering any monies owed to landowners.”

       

      Grant Jones,

      Chartered accountant, solicitor and practising arbitrator

    • ““I would recommend Accounting for Energy because they are clearly experts in this area, and they were good to work with. It was an easy
      decision to get them on board because we really didn’t have the expertise or the time to be trawling through the lease and power purchase agreement.”

       

      Nick Kenyon,

      CEO, Dewlay Cheesemakers


  • Testimonial with bg

    • “We found your report informative and easy to read, it was good to see how the wind farm is performing
      and we were pleased with the results of the audit”

       

      Mark Charles,

      Exeter

      Share
    • Sara James,

      Durham

      Share
    • Martin Roberts,

      Peterborough

      Share
    • Tracy Maria,

      Cumbria

      Share
    • David Terrence,

      Devon

      Share
    • “In every instance Accounting for Energy have identified and recovered shortfalls in rent for my clients. Not only do the landowners receive back payments but they are also keen to show developers that they are being held to account.”

       

      Chris Thyer MRICS FAAV

      Land Agent, GSC Grays

      Share
    • “We don’t have comparable leases in renewable energy meaning there are few examples to draw from, so it’s always good to have checks and balances in place. We would recommend Accounting for Energy for their diligence.”

       

      Ali Walker

      Property Co-ordinator, Bath and Wells Diocese, Church of England

      Share
    • “The information provided by the turbine owner seemed to be comprehensive. The issue comes with knowing if all the data is complete and the audit was able to identify areas that we should have been receiving royalties on.”

       

      Ben Ardern

      Financial Controller, Dewlay Cheesemakers

      Share
    • “I worked with Travis on a set of arbitral proceedings to recover unpaid royalties on behalf of the landowners of a large renewable energy site. I was very inspired by his passion for his industry and his tireless commitment to getting the best results.”

       

      Sarah Bishop,

      Commercial Disputes Solicitor

      Share
    • “Travis is the go-to person for renewable energy landowner royalty payments. He gets into the details of a case, and is very tenacious in identifying and recovering any monies owed to landowners.”

       

      Grant Jones,

      Chartered accountant, solicitor and practicing arbitrator

      Share
    • “I would recommend Accounting for Energy because they are clearly experts in this area, and they were good to work with. It was an easy
      decision to get them on board because we really didn’t have the expertise or the time to be trawling through the lease and power purchase agreement.”

       

      Nick Kenyon,

      CEO, Dewlay Cheesemakers

      Share

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