FREQUENTLY ASKED QUESTIONS
Who controls pre POWER ONE?
Pre POWER ONE is a democratic organisation owned and controlled by members. Any person or organisation invited to pay a $10 joining fee becomes a member when they pay their fee.
Why is it called pre POWER ONE Co-op Ltd?
It is ONE because it is the first Co-op of many. It is POWER because the purpose of the Co-op is to generate clean energy or POWER. It is a Co-op Ltd because members are only liable for the money contributed to the Co-op. It is pre because money invested in the Co-op is a prepayment for energy later produced by the Co-op.
Why is there a membership fee?
Members have to contribute in some way to the Co-op for an agreement to exist between members. The Co-op works for the benefit of members. In pre POWER ONE all members contribute with the joining fee. Some members contribute more by consuming energy and paying for it. Other members contribute prepayments to purchase, install and operate panels. Other members contribute by working for the Co-op and getting paid in prepayments.
What happens after I become a member?
If you want panels on your roof the Co-op arranges for an installer to come to your house to discuss what is best for you. You work with the installer to fill out all the required forms. The installer arranges for the tradespeople to come and install the system and supervise the installation. See some sample stories.
Do members have to have a rooftop?
No. Some Pre POWER ONE members contribute money or provide labour.
Can I be a member without buying electricity?
Yes. Members who contribute money are repaid regularly when other members buy electricity for cash.
What reports does a member receive?
All members will have access to real-time information on the financial state of the Co-op through an app available on smart phones and on desktop machines.
Do I remain with my electricity retailer?
Yes. pre POWER ONE is not a retailer and the rules of the National Energy Market require all customers to purchase electricity from the grid through a retailer. You will still need power from the grid and so you will retain your retailer.
How can pre POWER ONE sell electricity at a lower price than fossil fuel energy?
pre POWER ONE is a Not-for-profit member-owned cooperative. Members work for the benefit of other members. Members take responsibility for the financing and operations of the cooperative. pre POWER ONE does not depend on governments nor on corporate sponsorship. Members are not alone to deal with suppliers, regulators, banks, governments and big business. When a community of members take responsibility and work together as one, costs go down. The savings are passed on to members as lower-priced electricity and higher returns on money contributions.
Can money put into pre POWER ONE be retrieved?
Members who put money into pre POWER ONE can sell their prepayments with discounts to any other member.
What is the return on member's money?
The return on money depends on the surplus generated and the Co-op itself. At present, it is equivalent to a fixed 10% annuity over a maximum of 20 years on the money put into the Co-op.
What are the accounting entries for money going into pre POWER ONE?
When you put money into pre POWER ONE you create a long-term unsecured asset. pre POWER ONE records the amount as unearned income. If you use the unsecured asset to buy pre POWER ONE electricity your unsecured asset becomes an expense to you and pre POWER ONE unearned income changes to earned income.
If you receive your money back plus a surplus the surplus is recorded in your books as a Capital Gain. If you sell money in the Co-op to another member it is a transfer of asset and the value of the surplus is a Capital Gain.
Does pre POWER ONE guarantee a regular return of surplus?
The Co-op maintains financial viability because money is only returned to contributors if money comes in from payments for electricity. If there is no consumption of electricity, funds remain in the Co-op and are treated as though a surplus had been generated and the money is distributed internally to contributors of money. Pre POWER ONE is a Not-for-profit Co-op and any surplus must be used for the benefit of members. There are no debts, shareholders or other rentiers who need to be paid so it is highly likely prepayments will be honoured.
Are there transaction fees?
The only fees are bank transfer fees. There are charges to installers of panels, systems, software, and maintenance. It is expected these costs to be around 20% of the value of electricity produced. This contrasts with 50% costs when debt financing is used for financing.