Share Issue

Your Invitation to Invest!

You are invited to invest in Ynni Anafon Energy Cyf. and so to play an active part in the first community-owned hydroelectric generating plant in North Wales. With your help, we will be able to harness the waters of the Afon Anafon in the Carneddau range above the village of Abergwyngregyn to generate renewable electricity, to support local communities and community projects and to provide you, our investors, with a financial return on your investment.

By participating in Ynni Anafon Energy Cyf., you will be helping to promote community renewable energy which has the potential to reduce significantly our reliance on fossil fuels and nuclear generation.

Whether you live locally, further afield in Wales or beyond, you can buy shares in this exciting project for as little as £250 which entitles you to become a voting Member of YAE.

Interest will be paid on your investment after two years from the commissioning of the Anafon Hydro and, if you are a UK taxpayer, you may be able to reclaim a significant proportion of the sum you invest from HMRC (see below).

While your investment in Ynni Anafion Energy Cyf. will never make you rich, you should feel proud to be part of this pioneering community enterprise, of your support for renewable energy and of your contribution to a greener and more sustainable future.

The project depends absolutely on the support of our shareholders.

Your opportunity

The benefits of your participation in YAE will be:

  • The generation of clean, green electricity: The Anafon Hydro is anticipated to generate approximately 957 MWh of green electricity per year. This could provide sufficient electricity to power more than 230 homes and reduce carbon emissions by over 450 tonnes of CO2 each year.
  • Social benefits for the community: The scheme aims to yield an average of between £30,000 and £40,000 a year for distribution to the community during its first 40 years. The actual amount available will vary from year to year according to rainfall, wetter years yielding a larger income than drier years. The distribution of the amount available to the community will also vary according to YAE’s financial obligations. The shortfall between the amount we raise from the share issue and the cost of building the scheme will be met with a commercial loan. This loan will be repaid over the first 15 years of generation and the repayments to the bank at a relatively high rate of interest will reduce the amount available to the community.The more the share issue raises, the more money will be available for community benefit, so it is very important that we raise as much money as we can from our shareholders.
  • A financial return for your support: The scheme will provide you with a better return than you would currently receive if you put your money in a savings account in the bank.
Your investment

As an investor, you can expect a reasonable rate of return on your investment. The level of interest will be set by the Directors of YAE annually at the Society’s AGM. Investment returns offered by Industrial and Provident Societies like YAE are capped by the co-operative legislation. The maximum level of interest is limited to 2% over the Cooperative Bank’s base rate or 5%, whichever is higher.

Based on the assumptions about the likely pre-tax profits, the Directors hope to be able to pay an annual interest on share capital of approximately 4 – 5% (gross) per annum based on current interest rates. Because our primary objective is to benefit local communities, this rate of return is not directly linked to the profits YAE generates.

You must understand that shares in YAE will never increase in value. On the other hand, their value could be reduced to zero if the enterprise fails.

Share offer timetable
  • Offer opens: September 2014
  • Offer closes: November 2014
Who can invest?

Membership of YAE is open to individuals over the age of 16 years, corporate bodies, voluntary organisations and public sector investors.

How much can I invest?

The value of one share in Ynni Anafon Energy Cyf. is £50.00, with a minimum investment of £250 (5 shares) which entitles you to become a voting Member of the Society. The maximum individual investment set by YAE is £50,000. If you would like to invest less than £250, you can do so by joining with others to buy the minimum of five £50 shares. How you can do this will be explained in the Share Offer Document.

What do I receive in return for my investment in addition to a financial return?
  • A vote at the AGM of Ynni Anafon Energy Cyf.: all Members will have one vote each, regardless of how many shares they hold (providing they hold the minimum 5 x £50.00 shares);
  • The right to elect the Ynni Anafon Energy Cyf. Board of Directors according to the Rules of the Society and to participate in the Annual General Meeting deciding on the future and running of the Society;
  • The opportunity to become one of the volunteer Directors of Ynni Anafon Energy.
Will my investment be eligible for tax relief?

As long as you are a UK tax payer, you are eligible for tax relief on your investment subject to HMRC rules on eligibility.

Downloadable Documents

As the date of the share issue draws closer (13th of September 2014), more documents will be available to download.

  • Ynni Anafon Energy Rules

    The village is in Showdonia National Park, at junction 13 of the A55. There is free parking at the bottom of the village and paid parking nearer the falls.


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