There’s only one Low Carbon Hub!
Change is afoot at Low Carbon Hub. As many of our supporters know, we have had a somewhat complicated double legal structure. But over the past few months our staff and board, with support from our members, have been working to simplify things.
Previously Low Carbon Hub had operated as two separate organisations working in cooperation – the Low Carbon Hub Industrial and Provident Society (Low Carbon Hub IPS) and the Low Carbon Hub Community Interest Company (Low Carbon Hub CIC). The energy generating assets and investment were held in the IPS. Much of our community benefit work was delivered by the CIC, in part funded by the financial surpluses of the IPS.
The IPS was owned by our investor members. The CIC was part-owned by 41 local community groups.
More than10 years on since our inception and Low Carbon Hub had grown considerably – both in terms of the size of our generation portfolio, and the number and scale of energy programmes we deliver. Operating the two entities has become increasingly complicated and draining of Hub resources and earlier this year it was decided to consolidate to a simpler structure, with all activity taking place in the IPS.
On 31 March 2023 all staff moved from the CIC to the IPS. Our community group members, who originally held a £1 share in the CIC, have been offered the opportunity to exchange this for a share in the IPS.
The benefits of the restructuring means that the IPS now has direct control of key executive functions and the simplification of the Hub administration: eliminating multiple intercompany agreements and transfers means our creative energies can be focussed outwards, rather than being consumed in internal matters.
100% of the IPS’s profits continue to be used for the benefit of the community and the consolidated structure gives us a firm foundation from which to plan for our next ambitious phase of community-led action on climate change.
We are still in the final phases of the consolidation, but very much look forward the point when we can say there is only one Low Carbon Hub.