A presentation given by Ross Brown (Green Party Councillor and associate of Bryson Energy) on how Energy Brokering (community oil buying clubs) works and the benefits that it brings to its members.

1. Energy Brokering
SETTING UP AN OIL BUYING CLUB

2. NI Fuel Poverty & Oil Dependence
• Oil dependence is one of the key reasons why NI has the highest
incidence of Fuel Poverty in NI
• ~63% NI households use oil as the main source of fuel
• Costs of heating an average 3 bedroom house with oil approx 30%
more than with natural gas
• £1,573 - non condensing oil boiler or £1,093 – condensing gas
boiler*
• A typical 3 bedroom semi-detached house will take around 2,000 -
2,700 litres of oil a year to heat the house adequately (depending on
oil boiler) *
• Many households under use fuel because they cannot afford it
* Sutherland Heat Cost Tables October 2013

3. How An Oil Club Works
• An order is made for the total amount of oil.
• Payment for oil does not go through the oil club – people continue
to pay their supplier as before and can pay using oil savings stamps
if they wish.
• The club gives members collective bargaining power to negotiate
with the oil delivery suppliers for the cheapest price based on the
total oil order.
• Oil suppliers benefit from fewer goods vehicle movements - a full
tanker can get as little as 8 miles per gallon. If deliveries are
organised so that a tanker delivers to several customers in the same
area, the tanker’s fuel consumption is reduced.

4. How An Oil Club Works
• Oil Clubs work best when it has members who can afford to place
larger orders (e.g. 900 litres) as well as those members who can
only afford smaller orders (e.g. 300 litres).
• Everyone gets the oil at the same price per litre regardless of the
size of their order.
• Usually oil clubs will place an order once a month and will set a
deadline for members to get their orders to the co-ordinator.
• Since the establishment of East Belfast/Cregagh Oil Club in
September 2013, over 200 members have joined: 7 bulk orders
have been placed for 156 households: Group savings of £2,411.21;
Average savings of £15.46 per order.

5. How To Start up An Oil Club
• Arrange a public meeting about the advantages of setting up an oil
buying club
• Agree membership Terms & Conditions
• Elect Chairperson, Treasurer and Secretary & Volunteers
• Create memberships forms and promote club
• Set the buy date – usually at the end of every month
• Set a deadline for members to get their orders to the co-ordinator.
• Collate the total amount of orders
• Research oil prices prior to the bulk buy
• Negotiate the cheapest price possible for the bulk order

6. How To Start up An Oil Club
• Confirm to all those members who ordered, the name of the
successful oil supplier and the price per litre that was negotiated
• Email the order list spreadsheet to the successful oil supplier
• Oil supplier will contact the members on the spreadsheet to
arrange payment and deliveries
• Inform the members / local paper of the total oil club buy and the
money that was saved – to help promote the club
• Keep accurate records of all monthly oil club buys etc on a
spreadsheet and keep a back up copy as a safety measure.
• Alert the members to the number of days to the next big oil buy
then repeat process

7. Statistics
• 1st Oil buy was on Friday the 20th September 2013
• 214 community oil club buying members joined (165 East
Belfast + 49 North Belfast)
• 111,775 litres of oil ordered through the club (20,300 in North
Belfast + 91,475 in East Belfast)
91,475
20,300
111,775 litres of Oil Ordered
East Belfast
North Belfast

8. Statistics
• 226 Households got cheaper oil prices through 8 oil club bulk
buys (27 in North Belfast + 199 in East Belfast)
199
27
226 Households
East Belfast
North Belfast

9. Statistics
• 40 Households got cheaper oil prices through individual
brokering (9 in North Belfast + 31 in East Belfast)
• Members savings to date: £3,962.56 (Average - £14.90)
• Average savings to date: 4.57p per litre
£3,435.41
£527.15
£3,962.56 Savings
East Belfast
North
Belfast