Income from the Anafon Hydro

For the first 8 years of operation, gross revenue (turnover) from the sale of electricity and our Feed-in-Tariff ranged between £128,573 in 2015-16 and £347,337 in 2022-33. However, in 2023-24, gross revenue increase to £871,974. This was an exceptional year in that we were able to sign a Power Purchase Agreement for approximately 5 times the price we were paid for our electricity in 2022-2023. For 2024-2025, the price has returned to the previous level of approximately £100 per KWh.

Since 2017-18, profits have ranged between £33,659 and £103,518 p.a. (in the exceptional year 2023-24 - see above). After servicing our bank loan and the deduction of running costs, profits generated during the first two years of operation were allocated to building up reserves in accordance with the conditions of our bank loan and to cover emergencies. From the third year (2017-18), YAE commenced payment of interest to our shareholders and transferred disposable profits to the charity, Dŵr Anafon, for distribution for community benefit. Since then, the interest paid to our shareholders has remained at 5% p.a. and in 2018-2019 and subsequent years, we have been able to transfer a minimum of £30,000 p.a. to Dŵr Anafon for distribution for community benefit. 

In 2018, the Ynni Anafon Energy Cyf. Board decided to allocate a variable proportion of our annual profits to capital repayments of our Charity Bank loan. As a result, we were able to repay the whole of our Charity Bank loan in 2022, 8 years earlier than projected. This released a further £56,100 p. a. – the cost of servicing the loan – for community benefit.  In the five years 2031-35, as a condition of our lease of land for the weir and the upper section of the pipeline from the National Trust, we agree to make an index-linked donation of £25,000 p.a. to the Trust specifically for conservation work in the Carneddau massif in which the hydro is located. As our Feed in Tariff is also index linked, this donation will be affordable while maintaining our donations to Dŵr Anafon.  

In 2023-24, a Memorandum of Understanding was signed with Dŵr Anafon under the terms of which additional profits resulting from the elevated Power Purchase Agreement income (see above) have been transferred to the charity to be held in a ring-fenced capital reserve fund.  This fund will be accessible to ARC subject to the approval of the Trustees of the charity for any expenditure of this reserve proposed by ARC.

After Year 20 (2035) when the Feed in Tariff ends, income will depend solely on the income obtained from the sale of electricity.