INVESTING IN pre POWER ONE
An investor invests in pre POWER ONE by pre-purchasing electricity from the Co-op. Investors receive their money back either in cash or in discounted electricity. pre POWER ONE investors currently receive annuities paid monthly and calculated daily. The equivalent return is 10% per annum - adjusted for energy price inflation. These returns compare favourably with other common investments including bank savings accounts, superannuation returns, and indexed stock market returns.
Prepayments are relatively liquid as the cost of selling is low and there are always member customers who wish to use prepayments. The investments are secure as they are backed by panels. The electricity customers are other members of the Co-op and they receive a substantial discount on the cost of fossil fuel and they have panels on their roofs so they are likely to remain customers.
The investments are private as only the individual and the Co-op software has access to individual accounts.
An entity has to be a member to invest in prepayments and the pre POWER ONE members control membership and members share any surplus when it becomes available.
To get an idea of the value of pre POWER ONE investments we can compare them to the average Australian Superannuation fund. The calculator for the following graph is the number of years an investment of $10,000 will last if $1,000 is withdrawn each year. For pre POWER the number of years is 20. For the super fund it is 10 years. Go to this URL to check the calculations.