The directors present their annual report and financial statements for the year ended 31 December 2024.

The principal activity of the company is that of trade of electricity.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

 Overview

The Climate Innovation District 247 (CID247) development was around 3% complete as of 31st December 2024 with 8 homes of the planned 247 homes along Landing Place complete. The utility business plan operates at full efficiency when the development is complete so it’s natural to assume in the early years that deficits will accrue until it reaches a critical mass.

The trading deficit generated from all activities at CID247 in 2024 was £2,586 (£1,337 in 2023). This deficit has been added to the C/F deficit from 2023 which was £1,068, which has resulted in a cumulative deficit position of £3,654.

Electricity.

Similarly to 2023, power was sourced through a connection to CID312 over the river. A cable transfers power that runs within the bridge. This ensured that standing charges of a dedicated supply to CID 247 could be avoided until such a time that capacity requires.

The electricity from CID312 was sourced via a contract with Octopus Energy which commenced 1st February 2022, initially for two months, then for a period of 24 months. This contract expired on 31st March 2024 and stood at a day rate of 31.7p per kWh and a night rate of 21.25p per kWh. This produces an average blended rate of 29.06p per kWh, which is the rate charged to residents of both CID312 and CID247.

An energy contract was then signed with EDF which commenced 1st April 2024 for a period of 24 months. This contract stood at a day rate of 24.51p per kWh and a night rate of 19.95p per kWh. This produces an average blended rate of 23.45p per kWh, which is the rate charged to residents.

From Nov 1st, 2024, it was decided prudent to offer those residents paying by Direct Debit the current electricity tariff of 23.45p per kWh, whilst updating the tariff for those who did not pay by direct debit by 2% in order to cover the payment fees that had been levied onto CID247 Utilities Ltd per transaction, this had been previously absorbed by the CIC.

During 2024 a total of 108,358 kWh of electricity was purchased from CID312, sourced from renewable sources.

The total cost of electricity consumption billed to residents, property management company (Communal meters) and Development company (Site meters) in 2024 was £26,861. The amount purchased by CID247 from CID312 was £25,212. A total cost of £1,068 was charged to residents for standing charges. This resulted in a £2,717 surplus on the Consumption and Standing charges. A large portion of this surplus was due to the Solar generation, listed in more detail below.

Solar Electricity Generation

The total solar production for the 12 months of 2024 was 7,406 kWh (9,127 kWh in 2023). The total amount of electricity consumed by homes in Landing Place, alongside the site construction and communal consumption was 108,358 kWh (75,857 kWh in 2023).

Therefore 7% of all energy used by homes was generated from the onsite solar panels. This resulted in a value generated from solar electricity of £2,042 (£3,630 in 2023).

Data

The income generated from the provision of data was £2,816 verses costs of £1,200. The data connection was provided by Phase 1 (via line of sight) and was recharged at the same rate as it was charged to customers.

Administration

Billing and administration standing charges of £762 were charged to residents against costs of £7,332. The majority of this being the accountancy and bookkeeping costs.

A decision was made at the end of 2024 to reduce some of the Accountancy responsibilities and reporting frequencies in order to reduce the above costs. This is likely to reflect a reduced deficit in 2025. Additionally, as with electricity standing charges, this gap will close due to the fixed element of some of these costs as more residents take occupation throughout the development of the scheme. The resulting deficit has been offset against other surpluses.

Notes*

(1) All prices above quoted exclude VAT.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Climate Innovation District Utilities 247 Ltd for the year ended 31 December 2024 which comprise the income and expenditure account, the balance sheet and the related notes from the company’s accounting records and from information and explanations you have given us.

This report is made solely to the board of directors of Climate Innovation District Utilities 247 Ltd, as a body, in accordance with the terms of our engagement letter dated 20 March 2024. Our work has been undertaken solely to prepare for your approval the financial statements of Climate Innovation District Utilities 247 Ltd and state those matters that we have agreed to state to the board of directors of Climate Innovation District Utilities 247 Ltd, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Climate Innovation District Utilities 247 Ltd and its board of directors as a body, for our work or for this report.

It is your duty to ensure that Climate Innovation District Utilities 247 Ltd has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and result of Climate Innovation District Utilities 247 Ltd. You consider that Climate Innovation District Utilities 247 Ltd is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of Climate Innovation District Utilities 247 Ltd. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

The income and expenditure account has been prepared on the basis that all operations are continuing operations.

For the financial year ended 31 December 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

Climate Innovation District Utilities 247 Ltd is a private company limited by guarantee incorporated in England and Wales. The registered office is Carlton House, Grammar School Street, Bradford, West Yorkshire, BD1 4NS.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

Income and expenses are included in the financial statements as they become receivable or due.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

The company is exempt from corporation tax, it being a company not carrying on a business for the purposes of making a profit.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The average monthly number of persons (including directors) employed by the company during the year was:

The company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up such amounts as may be required not exceeding £1.

As at 31 December 2024, the company was owed £39,976 (2023 £15,560) from CITU Group Ltd.