## **Annual Report of the Council and Financial Statements for the year ended 31 December 2024**
Registered charity number 1097899
**Energy Institute Report of the Council and Financial Statements 2024**
## **Council, Officers and Committee Chairs**
> _Committees_ **Senior Management**
## **Council and Officers**
**Chief Executive**
## **President**
Dr Nick Wayth CEng FEI FIMechE
_NC_
Andy Brown OBE HonFEI
**Director** – **Technical and Innovation** Martin Maeso CEnv MEI
## **Vice-Presidents**
_NC HR, NC NC, FAC_
Tim Pick MBE FEI Cordi O’Hara OBE FEI Aleida Rios CEng FEI
**Director** - **External Affairs** Nick Turton FEI
**Director - Finance** Ava Longhurst DChA
**Vice-President & Honorary Secretary** Cordi O’Hara OBE FEI Juliet Davenport OBE HonFEI
_NC, HR NC_
**Director – People, Culture and Governance** Zehra Hussain AMEI
_FAC_
**Honorary Treasurer** Simardeep Soor ACA FEI
## **Main Committee Chairs**
_YPC, HR_
## **Young Member Representative**
**Human Resources Committee** _(HR)_ Cordi O’Hara OBE FEI and Michael Howie AMEI
Michael Howie AMEI
**Finance and Audit Committee** _(FAC)_ Simardeep Soor ACA FEI
## **Other Members of Council**
Prof John Currie CEng FEI _EAP_ Prof Robert Gross FEI _EAP_ Laura Hardiman FEI _PDC_ Lisa Rebora FEI _STAC_ Natasha Patel FEI
**Professional Development Committee** _(PDC)_ Laura Hardiman FEI
**Scientific and Technical Advisory Committee** _(STAC)_ Lisa Rebora FEI
**Energy Advisory Panel** _(EAP)_ Prof Robert Gross FEI
**Nominations Committee** _(NC)_ President
**Young Professionals Council** _(YPC)_ Michael Howie AMEI
**Disciplinary Committee**
To be appointed by Council as required
**Appeals Committee** To be appointed by Council as required
## **Other information**
## **Registered Office**
61 New Cavendish Street, London W1G 7AR, UK t: +44 (0) 20 7467 7100
e: info@energyinst.org
www.energyinst.org.
Registered charity number 1097899
Incorporated by Royal Charter 1 July 2003
Licensed by the Engineering Council (UK) to register engineers and technicians
Licensed by the Society for the Environment to register Chartered Environmentalists
## **Bankers**
## **Investment Managers**
Sarasin & Partners LLP Juxon House, 100 St Pauls Churchyard, London EC4M 8BU
## **Solicitors**
Hempsons 40 Villiers Street, London WC2 6NJ
## **Auditor**
HaysMac LLP 10 Queen Street Place, London EC4R 1AG
## **Pensions Adviser**
Morgans Ltd 41 Gay Street, Bath, BA1 2NT
Lloyds TSB Bank Plc, Business banking BX1 1LT
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**Energy Institute Report of the Council and Financial Statements 2024**
## **Council Report for the year ended 31 December 2024**
Council presents its Report and the Financial Statements for the year ended 31 December 2024.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Reference and administrative details**
Legal and administrative information is set out on page 1 and forms part of this report.
## **Establishment and legal structure**
The Energy Institute (EI) was incorporated by Royal Charter on 1 July 2003 and is a registered charity, number 1097899. The EI is governed in accordance with the Royal Charter and Byelaws. The Financial Statements have been prepared in accordance with the requirements of the Royal Charter, the Statement of Recommended Practice ‘Accounting and Reporting by Charities’ (Charities SORP second edition, effective 1st January 2019), and other relevant statutory requirements.
## **Governance**
The Council of the EI is its governing body and consists of elected and appointed members of the EI.
The Council of the EI has the following membership:
- the President, the Honorary Secretary and the Honorary Treasurer
- other such officers as the EI may determine
- up to 6 elected individual members of the EI
- up to 3 individuals co-opted by Council
- up to 3 individual members of the EI, nominated by Branches
The Chief Executive attends meetings of Council in a non-voting capacity. Members are elected or appointed to the Council and remain so until their term of office, determined by Council regulations, concludes. The members of Council at the date of this report are shown on page 1. All served throughout the year with the exceptions of Natasha Patel FEI, Tim Pick MBE FEI, Cordi O’Hara OBE FEI and Laura Hardiman FEI who were appointed to Council at the AGM on 11 July 2024. Joanne Wade OBE FEI, Charles Hendry CBE HonFEI, Andy Hadland AMEI, Emily Spearman CEng FEI, Greg Jackson FEI retired from Council at the AGM on 11 July 2024.
Gender diversity is now 42%:58% male, female respectively. Ethnic diversity is now 25% (2023: 15%) of Council membership.
Members of the Council are also the trustees in accordance with charity law and provide strategic direction for the Charity. Trustees are appointed and elected via various routes and all new members undergo a comprehensive induction and where appropriate external trustee training is also provided.
The Council has the power (under Bye-law 45) to establish, regulate and dissolve committees and delegate its powers and functions (other than the power to make regulations or its non-delegable powers as a body of trustees) to such committees. Three mandatory committees operate and routinely report to Council, namely Finance and Audit, Human Resources and Professional Affairs. The Scientific and Technical Advisory Committee also reports to Council and is directly represented via the co-option of its Chair to Council. Similarly, the Energy Advisory Panel reports to Council and is chaired by a member of Council.
EI is managed on a day-to-day basis by the Chief Executive assisted by staff of appropriate qualification and experience. The Council monitors performance on a quarterly basis.
The EI’s remuneration policy is to ensure the staff and the key management personnel are rewarded in a fair and responsible manner for their contribution to the success of the EI and provided with appropriate incentives to encourage enhanced performance. It is the intention of the EI to reward staff in a way which ensures it attracts and retains the right talent and skills to have the greatest impact in delivering its charitable objectives. In setting an appropriate salary and grading structure the EI takes account of information on movements in prices and salaries in central London; salaries in the charity and commercial sectors; and, the EI’s charitable status and financial position.
The EI consists of individual members and company members, having such qualifications and rights as are determined by the Bye-laws in force.
## **Regional communities and subsidiaries**
The EI provides grants and administrative support and guidance to a number of regional communities that operate autonomously both within the UK and overseas. The officers of these branches are appointed by the regional community memberships of the EI. The EI also owns 3 subsidiary companies in Hong Kong, Nigeria and Singapore. The EI also has a wholly owned UK subsidiary company, limited by shares. The UK subsidiary, EI Services Limited was incorporated on 17 May 2017. The purpose of the UK subsidiary is to administer commercial activities that will contribute to the EI’s charitable activities.
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**Energy Institute Report of the Council and Financial Statements 2024**
## **Major risks**
Council has identified and reviewed the major risks to which the EI is exposed. Council is satisfied that appropriate systems have been implemented to mitigate those risks.
In relation to 2025 planned activities, Council has identified the following priority risks:
Delivering the EI’s 2030 strategy remains a top priority. To manage risks, appropriate financial and other metrics are in place to ensure KPI’s are regularly monitored. Council reviewed 2025 business plans and budget alongside the annual risk assessment to identify associated risk against key objectives. Membership, EI Academy and EI Statistical Review of World Energy are among our top priorities with the Statistical Review of World Energy being the highest risk in terms of gaining sponsorship to ensure we can provide freely accessible data to the industry.
Over the last 3 years the EI has invested in People and Culture (P&C) as part of the strategy. Our P&C strategy aims to re-skill and upskill, has a dedicated Learning and Development resource to ensure training and development needs are met and furthermore enhanced to meet our goal.
Governance and Compliance is an area identified as a key risk, the leadership team worked on renewing its policies and processes throughout the year, tightening internal controls to mitigate its exposure to noncompliance and fraudulent activities.
Recognising our stakeholder relationships are important to the EI’s success, ensuring our increased portfolio of partnerships are well managed is key to mitigating any conflicting interests.
The security of our assets is essential as we evolve our digital transformation. In an age of continuous upgrade of digital systems and websites, cybersecurity, loss of data and unauthorised access to personal information risks are ever present. The digital transformation team have worked hard to ensure our system security is robust and follows cyber security protocol. To manage this risk, the EI has an Incident response team who regularly meets throughout the year and upon any potential security breach incident to assess and agree actions if required. The digital team maintains the cyber essentials certification and routine cyber-penetration testing.
## **PUBLIC BENEFIT**
Members of Council recognise their responsibilities towards public benefit under the requirements of the Charities Act 2011 and have had regard to the guidance from the Charity Commission on public benefit. This requirement is reflected in the Objects of the EI, set out below. The benefits are clear and identifiable. They are available to a wide section of the public who are interested in energy and its implications for society, whilst the broader public benefits derive from the development of safe, secure and a more sustainable supply and use of energy in a way that enables affordable development. These benefits are set out within the appropriate sections of this report.
## **OBJECTS, AIMS, OBJECTIVES AND ACTIVITIES**
The objects of the EI are the promotion for the public benefit of the science of energy and fuels in all applications and uses, including:
- To conduct or promote the conduct of scientific and other research, to publish useful results of such research, and to provide facilities for study, research and education;
- To publish, produce and distribute or assist in the publication, production or distribution of films, recordings, and any form of written, printed or electronic communication and to advertise in any manner;
- To establish and maintain libraries and collections, and provide public access to them, and to collect information whether or not on a basis restricted by agreement with the provider thereof;
- To hold conferences, meetings and seminars and other events and to promote the reading of learned papers;
- To encourage the undertaking of voluntary work in the interests of the EI;
- To develop and promulgate codes of good professional practice, to prescribe standards of education, training and experience in professions or activities related to the objects and to hold examinations and other tests, and to award certificates and diplomas **:** provided that no such certificate or diploma shall purport to be issued by or under government authority, or purport to be a national qualification, without the prior approval of, or accreditation by, the appropriate department of Government and/or the appropriate devolved administration, or the appropriate regulatory body for qualifications;
- To institute, establish and promote educational and training courses, scholarships grants, awards and prizes.
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**Energy Institute Report of the Council and Financial Statements 2024**
In addition to its Royal Charter objects, which define the nature of its activities, the EI Council sets a strategy which aims to direct how it works towards achieving those objects. The EI’s purpose is to create a better energy future for our members and society by accelerating a just global energy transition to net zero.
The EI achieves this through:
- Attracting, developing and equipping the diverse future energy workforce
- Informing energy decision making through convening expertise and advice
- Enabling industry to make energy lower carbon, safer, and more efficient
The Council approves an annual business plan and budget which supports the longer-term strategy and ensures that the organisational resources required are adequate to meet its needs. The EI does not participate in any fundraising activities.
## **Principal activities for the year, achievements and performance**
The energy sector continued to be buffeted by geopolitical events, not least continuing conflict in the Middle East and Ukraine, and the election of the second Trump administration in the US. On top of this, the increasingly visible impacts of climate change across all continents focused minds on multilateral solutions via COP29 at the end of the year in Baku, Azerbaijan.
Alongside this, 2024 has seen further successful efforts to deliver on the EI’s new, clearer strategic purpose, with projects either being delivered or scoped across three strategic themes. Highlights during 2024 included:
## **Attracting, developing and equipping the diverse future energy workforce**
- Introduction of the Executive Leadership in Energy Programme, part of the growing training portfolio of the EI Academy.
- Introduction of the employee membership scheme, opening up complimentary associate membership for employees of company members and technical partners.
- Launch of EI Together, the EI’s new online community platform to improve the ability of members to engage with each other.
- Continued support for and visibility of POWERful Women, focused around the 10[th] anniversary including a celebratory dinner at the Science Museum. Also the Energy Leaders Coalition, TIDE, Pride in Energy and sponsoring the EI Big Bang Climate Change Award.
## **Informing energy decision making through convening expertise and advice**
- International Energy Week 2024: ‘In search of the energy transition’. Speakers included UK Shadow Energy Secretary Ed Miliband. The President’s Award was presented to Dr Nawal Al-Hosany, UAE Permanent Representative to IRENA, alongside a reinvented International Energy Awards.
- Published the second edition of the EI Statistical Review of World Energy, including focus on divergent transitions across regions and new data sets on transition technologies.
- Published Energy Barometer: Power Shift, reflecting on a decade of surveys, and forward on the priorities for the incoming UK administration.
- Continued to build the readership of New Energy World, the EI’s weekly digital and printed quarterly member magazine, providing a window on the energy transition as it unfolds.
- Made an impact at COP29 in Baku, Azerbaijan, with CEO presence on panels in green and blue zones.
- Delivered Energy Fundamentals course to 100s of officials at the new UK Department for Energy Security and Net Zero, over four half-day sessions.
- Played a leading role in sector collaborations including Sustainable Markets Initiative, National Engineering Policy Centre, Methane Guiding Principles.
## **Enabling industry and consumers to make energy lower carbon, safer, and more efficient**
- Technical and Innovation work programme continued to evolve in three key areas to support the transition, with accelerated work on CCUS, power systems and hydrogen.
- Breadth and reach of technical programme reinforced with 72 technical resources published, 22,000 downloads of EI guidelines, and 130,000 separate users of our learning from incidents app, Toolbox.
- Annual incident data published by G+ and SafetyOn for offshore and onshore wind sectors respectively, with new companies joining the collaborations.
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**Energy Institute Report of the Council and Financial Statements 2024**
A significant change to the make-up of Council occurred mid-year when, with Andy Brown OBE FEI replacing Juliet Davenport OBE HonFEI as President and Cordi O’Hara OBE FEI and Tim Pick MBE FEI taking up positions as new Vice Presidents.
## **Investment powers, policy and performance**
The powers of Council to manage investments are specified in Bye-law 44. The Council has delegated the management of the investment portfolio to its Finance and Audit Committee.
Its policies are:
- to employ an active investment management strategy; and
- to hold funds required for the day-to-day running of the Energy Institute in interest-paying bank deposit accounts.
The performance of the Energy Institute portfolio for the calendar year 2024, net of management fees, was 8.7% against a benchmark of 11.7% and compared with the ARC steady growth charity index of 7.51%. The Committee regularly reviews the performance of the investment and deposit portfolio and reports to Council on a quarterly basis. Investments are under management by Sarasin & Partners LLP.
## **FINANCIAL REVIEW**
The financial results for the EI itself are set out in the Statement of Financial Activities on page 10.
During the year the EI’s consolidated results comprised income of £10,561,000 (2023: £9,869,000) and expenditure of £10,641,000 (2023: £9,180,000). Unrestricted income in the year increased by £278,000 to £7,654,000 (2023: £7,376,000).
Unrestricted general reserves, excluding gain on investment, produced an operating deficit of £213,000 (2023: £294,000 surplus). The net gain on investments of £286,000 (2023: £202,000) resulted in net income of £73,000 (2023: £496,000 net expenditure). After taking account of movements on restricted reserves and the designated reserves, this resulted in total net income of £248,000 (2023: £897,000). Actuarial loss of £128,000 (2023: £422,000 gain) on the pension plan contributed to a net surplus in funds of £120,000 (2023: £1,319,000 gain) for the year.
At the end of 2024, the EI group had net assets of £12,205,000 (2023: £12,085,000), analysed in the balance sheet set out on page 12. The primary asset is the long leasehold of the premises at 61 New Cavendish Street.
Listed investments plus cash and bank deposits totalled £5,811,000 (2023: £5,111,000) at the end of 2024, sufficient to meet the EI’s obligations to creditors and restricted funds. There was a decrease of £169,000 (2023: £490,000 increase) in the estimated surplus on the pension plan from 2024, this is reflected in the balance sheet under the Financial Reporting Standard 102 as a pension plan surplus of £1,017,000 (2023: £1,186,000).
## **Operational reserves**
The Energy Institute’s consolidated free reserves at 31 December 2024 totalled £1,295,000 (2023: £1,286,000), representing total unrestricted funds of £8,485,000 (2023: £8,673,000) less those held in tangible fixed assets of £6,101,000 (2023: £6,082,000), those designated for particular projects or purposes of £72,000 (2023: £119,000) and excluding the pension reserve surplus of £1,017,000 (2023: £1,186,000).
The Council has reviewed the level of free reserves required by the Institute and considered the following:
- The Institute is budgeting breakeven in 2025 which includes investments made in the last 3 years.
- The overall risk profile of the charity has been assessed, and the most significant cost commitments have been identified and built into the minimum reserve level.
- Cash flow forecasts highlight the cyclical pattern where the Institute has good cash reserves early in the year which is utilised over the course of the year
- The Institute holds around £4m of liquid investments, approximately one third is unrestricted. This core level of investment is unlikely to change significantly in value given amounts utilised are replaced with new income received.
Based on the factors noted above, the Council has set a policy level of free reserves with a minimum level of £800,000 to reduce financial risk.
The current levels and explanations of the purposes for designated funds are described in note 13 to the accounts.
## **FUTURE PLANS**
With new initiatives bedding in, 2025 is set to be another busy year delivering on the EI’s strategic themes. Activities for 2025 will include:
## **Attracting, developing and equipping the diverse future energy workforce**
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**Energy Institute Report of the Council and Financial Statements 2024**
- A continued focus on the ‘member first’ strategy aimed at refining and promoting the member offer, bedding in initiatives launched in 2024 including EI Together, membership for employees.
- Digitalisation of professional membership application process to improve the customer experience.
- Development of the EI Academy through original training content and partnerships, including the second cohort of the Executive Leadership in Energy Programme.
- Alignment of energy management training with Chartered Energy Manager status.
- Leadership and support for POWERful Women, also activities in support of Generation 2050, Pride in Energy, TIDE and others.
## **Informing energy decision making through convening expertise and advice**
- International Energy Week to move to its new home, the QEII Centre in Westminster, allowing for a more dynamic experience and further growth in future years. Former US Secretary of State John Kerry will receive the President’s Award, alongside other big-name speakers.
- The Statistical Review of World Energy and associated materials will be published for the third time by the EI and partners KPMG and Kearney.
- The annual Energy Barometer member survey will be focused on the Asia Pacific region in partnership with local organisations.
- Further deepening of relationships in the UK policy making sphere, building on the Energy Barometer 2024, in particular around the skills required for the clean power 2030 mission.
- Expansion of readership of New Energy World digital weekly through 3 open access months, and promotion of the printed quarterly to increase the number of recipients among professional members.
- Active roles in collaborative initiatives including Sustainable Markets Initiative, National Engineering Policy Centre and Methane Guiding Principles.
## **Enabling industry and consumers to make energy lower carbon, safer, and more efficient**
- Deliver the STAC-approved Technical and Innovation programme, maintaining the publication schedule through the year and bringing in new partners and technical company members, including Petronas.
- Work with stakeholders to review programme scope, including potential new areas in support of the energy transition, including solar and better storage. Also expand engagement with global energy regulators to support safe, efficient and sustainable industry operations.
- Promote greater awareness and use of content through a programme of webinars, more concerted marketing and refreshed presence on the EI website.
## **COUNCIL’S RESPONSIBILITIES FOR THE FINANCIAL STATEMENTS**
Council prepares financial statements for each financial period, which give a true and fair view of the state of affairs of the EI and of the surplus or deficit of the EI for that period. In preparing those financial statements, Council is required to:
- follow applicable accounting standards;
- observe the methods and principles in the Charities SORP;
- select suitable accounting policies and then apply them consistently;
- make judgements and estimates that are reasonable and prudent; and
- prepare the financial statements on a going-concern basis unless it is inappropriate to presume that the EI will continue in business.
Council is responsible for keeping proper accounting records, which disclose with reasonable accuracy at any time the financial position of the EI and to enable it to ensure that the financial statements comply with the Royal Charter and the Charities Acts. Council is also responsible for safeguarding the assets of the EI and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Auditor**
A resolution for the auditor appointment for year ending 31 December 2025 will be proposed at the Annual General Meeting.
**Andy Brown OBE FEI** President 3 April 2025
**Simardeep Soor ACA FEI** Honorary Treasurer
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**Energy Institute Report of the Council and Financial Statements 2024**
## **INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF ENERGY INSTITUTE**
## **Opinion**
We have audited the financial statements of the Energy Institute for the year ended 31 December 2024, which comprise the Consolidated and Charity Statements of Financial Activities, the Consolidated and Charity Balance Sheet, the Consolidated and Charity Cash Flow Statements and the related notes. These financial statements have been prepared under the accounting policies set out therein. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the group’s and the parent charity’s affairs as at 31 December 2024 and of the group’s and the parent charity’s incoming resources and application of resources, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **Basis for opinion**
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group and parent charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The trustees are responsible for the other information. The other information comprises the information included in the Report of the Council. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent charity, or returns adequate for our audit have not been received from branches not visited by us; or
- sufficient accounting records have not been kept; or
- the parent charity financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit.
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**Energy Institute Report of the Council and Financial Statements 2024**
## **Responsibilities of trustees for the financial statements**
As explained more fully in the Statement of Council’s Responsibilities set out in the Report of the Council, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the group’s and the parent charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charity or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Based on our understanding of the parent charity and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to management override, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011.
We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to management override. Audit procedures performed by the engagement team included:
- Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
- Evaluating management’s controls designed to prevent and detect irregularities;
- Identifying and testing journals, in particular journal entries posted with unusual account combinations, postings by unusual users or with unusual descriptions; and
- Challenging assumptions and judgements made by management in their critical accounting estimates, including the provision for bad debts, depreciation of fixed assets and the defined benefit pension scheme liability.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Use of our report**
This report is made solely to the charity’s trustees, as a body, in accordance with Section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an Auditor’s Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
## HaysMac LLP
**HaysMac LLP** Statutory Auditor
10 Queen Street Place, London EC4R 1AG
Date: 07/04/25
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**Energy Institute Report of the Council and Financial Statements 2024**
HaysMac LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.
## **Consolidated Statement of Financial Activities for the year ended 31 December 2024 (Including consolidated income and expenditure)**
|**Note**
**Income:**
_Income from charitable activities:_
Members’ subscriptions
Charitable activities
Other trading activities
3
Investments
**Total income**
**Expenditure:**
Charitable activities
Other trading activities
**Total expenditure**
4
Net gains on investments
9
**Net income/(expenditure)**
Transfers between funds
**Other recognised gains/(losses):**
Actuarial (losses)/gains on Pension Plan
12
**Net movement in funds**
**Reconciliation of funds:**
**Total funds brought forward**
**Total funds carried forward**
13,14|**2024**
**2024**
**2024**
**2024**
**2023**|
|---|---|
||**Unrestricted**
**General**
**Designated**
**Restricted**
**Total**
**Total**
**reserve**
**reserve**
**reserve**
**reserves**
**reserves**
**£’000**
**£’000**
**£’000**
**£’000**
**£’000**|
||2,039
-
-
2,039
1,959|
||5,105
804
2,088
7,997
7,296|
||370
-
-
370
463|
||7,514
804
2,088
10,406
9,718|
|||
||140
-
15
155
151|
||**7,654**
**804**
**2,103**
**10,561**
**9,869**|
||
|
||7,762
937
1,837
10,536
9,048|
||105
-
-
105
132|
||**7,867**
**937**
**1,837**
**10,641**
**9,180**|
|||
||286
-
42
328
208|
||73
(133)
308
248
897|
||(105)
105
-
-
-|
||
|
||(128)
-
-
(128)
422|
||**(160)**
**(28)**
**308**
**120**
**1,319**|
|||
||2,472
6,201
3,412
12,085
10,766|
||**2,312**
**6,173**
**3,720**
**12,205**
**12,085**|
All income and expenditure derive from continuing activities and there are no gains and losses other than those passing through the Statement of Financial Activities.
9
**Energy Institute Report of the Council and Financial Statements 2024**
## **Charity Statement of Financial Activities for the year ended 31 December 2024 (Including income and expenditure account)**
|**Note**
**Income:**
_Income from charitable activities:_
Members’ subscriptions
Charitable activities
3
Donations
Investments
**Total income**
**Expenditure:**
Charitable activities
**Total expenditure**
4
Net gains on investments
9
**Net income/(expenditure)**
Transfers between funds
**Other recognised gains/(losses):**
Actuarial (losses)/gains on Pension Plan
12
**Net movement in funds**
**Reconciliation of funds:**
**Total funds brought forward**
**Total funds carried forward**
13,14|**2024**
**2024**
**2024**
**2024**
**2023**|
|---|---|
||**Unrestricted**
**General**
**Designated**
**Restricted**
**Total**
**Total**
**reserves**
**reserve**
**reserves**
**reserves**
**reserves**
**£’000**
**£’000**
**£’000**
**£’000**
**£’000**|
||2,036
-
-
2,036
1,954|
||5,011
804
2,088
7,903
7,155|
||7,047
804
2,088
9,939
9,109|
|||
||271
-
-
271
334|
||134
-
15
149
149|
||**7,452**
**804**
**2,103**
**10,359**
**9,592**|
|||
||7,628
937
1,837
10,402
8,897|
||**7,628**
**937**
**1,837**
**10,402**
**8,897**|
|||
||286
-
42
328
208|
||110
(133)
308
285
903|
||(105)
105
-
-
-|
||
|
||(128)
-
-
(128)
422|
||**(123)**
**(28)**
**308**
**157**
**1,325**|
|||
||2,392
6,201
3,412
12,005
10,680|
||**2,269**
**6,173**
**3,720**
**12,162**
**12,005**|
All income and expenditure derive from continuing activities and there are no gains and losses other than those passing through the Statement of Financial Activities.
10
**Energy Institute Report of the Council and Financial Statements 2024**
## **Consolidated and Charity Balance Sheet as at 31 December 2024**
||**Group**
**Group**
**Charity**
**Charity**|
|---|---|
||**2024**
**2023**
**2024**
**2023**|
|**Note**|**£’000**
**£’000**
**£’000**
**£’000**|
|||
|**Fixed assets:**||
|Tangible assets
8|6,101
6,082
6,101
6,082|
|Investments
9|4,438
4,110
4,438
4,110|
|**Total fixed assets**|**10,539**
**10,192**
**10,539**
**10,192**|
|||
|**Current assets:**||
|Debtors
10|2,434
1,812
2,406
2,032|
|Short term deposits|285
13
285
13|
|Bank and cash|1,088
988
642
378|
|**Total current assets**|**3,807**
**2,813**
**3,333**
**2,423**|
|||
|**Liabilities:**||
|Amounts falling due within one year
11|(3,158)
(2,106)
(2,727)
(1,796)|
|**Net current assets**|**649**
**707**
**606**
**627**|
|||
|**Total assets less current liabilities**|**11,188**
**10,899**
**11,145**
**10,819**|
|||
|_Net assets excluding pension liability_|11,188
10,899
11,145
10,819|
|Pension Scheme surplus
12|1,017
1,186
1,017
1,186|
|
**Total net assets**|**12,205**
**12,085**
**12,162**
**12,005**|
|||
|**The funds of the charity:**||
|_Unrestricted reserves_
13||
|General reserve|1,295
1,286
1,252
1,206|
|Pension reserve|1,017
1,186
1,017
1,186|
|Designated reserves|6,173
6,201
6,173
6,201|
||8,485
8,673
8,442
8,593|
|_Restricted reserves_
13|3,720
3,412
3,720
3,412|
|**Total group and charity funds**|**12,205**
**12,085**
**12,162**
**12,005**|
These financial statements were approved and authorised for issue by Council on 3 April 2025 and signed on its behalf by:
**Andy Brown OBE FEI** President Honorary Treasurer
**Simardeep Soor ACA FEI**
11
**Energy Institute Report of the Council and Financial Statements 2024**
|**Cash flow Statement for the year ended 31 December 2024**|**Cash flow Statement for the year ended 31 December 2024**||**Group**|**Group**|**Charity**|**Charity**|
|---|---|---|---|---|---|---|
||||**2024**|**2023**|**2024**|**2023**|
||||**£’000**|**£’000**|**£’000**|**£’000**|
|**Cash flows from operating activities:**|||||||
|Net income for the reporting period (as per the statement of financial
activities)|||248|897|285|903|
|(Gains)/Losses on investments|||(328)|(208)|(328)|(208)|
|Investment income|||(155)|(151)|(149)|(149)|
|Depreciation of tangible fixed assets|||85|79|85|79|
|(Increase)/Decrease in debtors|||(621)|184|(373)|(63)|
|Increase/(Decrease) in creditors|||1,052|(718)|931|(446)|
|Non-cash operating movement in pension scheme asset|||41|(68)|41|(68)|
|**_Net cash used in operating activities_**|||**322**|**15**|**492**|**48**|
|**Cash flows from investing activities:**|||||||
|Investment income|||155|151|149|149|
|Payments to acquire tangible fixed assets|||(105)|(47)|(105)|(47)|
|**_Net cash provided by investing activities_**|||**50**|**104**|**44**|**102**|
|**Cash flows from financing activities:**|||||||
|**_Change in cash and cash equivalents in the year_**|||372|119|536|150|
|Cash and cash equivalents at the beginning of the year|||1,001|882|391|241|
|**_Cash and cash equivalents at the end of the year_**|||**1,373**|**1,001**|**927**|**391**|
|**Analysis of changes in net debt of Group**|**1 January 2024**|||**Cash flow**|**31 December 2024**||
|||**£’000**||**£’000**||**£’000**|
|Cash at bank and in hand||988||100||1,088|
|Short term deposits||13||272||285|
|**Total cash and cash equivalents**||**1,001**||**372**||**1,373**|
|**Analysis of changes in net debt of Charity**|**1 January 2024**|||**Cash flow**|**31 December 2024**||
|||**£’000**||**£’000**||**£’000**|
|Cash at bank and in hand||378||264||642|
|Short term deposits||13||272||285|
|**Total cash and cash equivalents**||**391**||**536**||**927**|
12
**Energy Institute Report of the Council and Financial Statements 2024**
## **Notes on the financial statements**
## **Note 1 - Accounting Policies**
## **a) General information**
The Energy Institute is a body incorporated by Royal Charter and is a charity registered with the Charity Commission (charity registration no. 1097899). The registered office address is 61 New Cavendish Street, London W1G 7AR.
## **b) Basis of preparation**
The financial statements are prepared under the historical cost convention as modified to include the revaluation of investments at market value, and in accordance the Statement of Recommended Practice for Charities (Charities SORP second edition, effective 1st January 2019) and applicable accounting standards (FRS 102).
The Energy Institute meets the definition of a public benefit entity under FRS 102.
## **c) Basis of consolidation**
The consolidated financial statements of the Energy Institute incorporate the accounts of the charity and its subsidiary undertakings. The results of the subsidiary undertakings, as shown in note 7, are consolidated on a line by line basis within the consolidated Statement of Financial Activities (SOFA).
In the parent charity accounts the investment in associates is recognised at cost less provision for impairment. FRS 102 requires associated undertakings to be accounted for under the equity method of accounting where the charity’s share of the associate’s net income or expenditure is recognised in the SOFA and netted off against the carrying amount of the investment in the consolidated accounts.
## **d) Going concern**
The financial outturn in 2024 has maintained free reserves above the minimum level. A strong 2025 operating plan along with tight budgetary control, monitoring of financial risks and flexibility if revenue streams do not meet expectations, provide the trustees with confidence that the Institute remains a going concern. The accounts have been prepared on that basis.
## **e) Income**
All income is recognised on an accruals basis and excludes Value Added Tax.
The Energy Institute generally raises invoices and sends renewals to individuals and companies for the following financial year’s membership fees and other agreed projects before the balance sheet date.
## **f) Expenditure**
Expenditure is included on an accruals basis and excludes the related Value Added Tax (except where the Value Added Tax is not recoverable). Resources expended are analysed according to departmental costs incurred.
Support costs consist of central management, property, administration and governance costs. Governance costs consist of those costs associated with meeting the statutory and compliance requirements of the charity. Support costs are allocated to expenditure on charitable activities in accordance with the proportion of staff involved in each direct activity.
## **g) Tangible fixed assets and depreciation**
Fixed assets are stated at cost less depreciation. Depreciation is provided on all assets on the straight line method at the following rates calculated to write off over their remaining lives:
Leasehold improvements 1.0% per annum Plant and equipment 5.0% per annum Fixtures and fittings 20.0% per annum ICT assets 33.3% per annum
13
**Energy Institute Report of the Council and Financial Statements 2024**
## **Notes on the financial statements**
## **Note 1 - Accounting Policies (continued)**
## **h) Investments**
Listed investments are stated at market value. Gains and losses arising from changes in market values are included within the SOFA. Unlisted investments are stated at cost less provision for impairment **.**
## **i) Cash at bank and in hand**
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **j) Financial instruments**
The Energy Institute only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments, including trade and other receivables and payables and bank loans are initially recognised at transaction value and subsequently measured at their settlement value.
Debt instruments are subsequently measured at amortised cost, using the effective interest method.
## **k) Creditors and provisions**
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably.
## **l) Pensions**
The Energy Institute operates a defined benefit pension plan which is closed to new entrants. The scheme is funded with the assets held separately from the Energy Institute in separate trustee administered funds.
The asset or liability recognised in the balance sheet is the net of the present value of the pension scheme liabilities and the fair value of the assets held in the scheme. The current service cost of the scheme and net interest costs are charged to staff costs in the SOFA. Actuarial gains and losses are recognised within other recognised gains and losses in the SOFA. The detailed assumptions relating to the valuations of the pension scheme assets and liabilities and movements in the year are included in Note 12.
The Energy Institute also operates stakeholder pension plans for employees for which employer contributions are expensed in the SOFA as payable. On 1 January 2020, the Energy Institute entered into a salary sacrifice scheme agreement with the stakeholder pension scheme members.
## **m) Foreign currency translation**
The Energy Institute’s functional and presentation currency is pound sterling. Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are recognised in the SOFA.
The trading results of overseas subsidiaries are translated into sterling at the average exchange rate for the year. The assets and liabilities of overseas undertakings are translated at the exchange rates ruling at the balance sheet date. Exchange adjustments arising from the retranslation of opening net investments and from the translation of the results at average rates are recognised in the SOFA.
## **n) Fund accounting**
Funds held by the Energy Institute are categorised as:
_Unrestricted general_ – funds which can be used in accordance with the charitable objects of the Institute at the discretion of Council.
_Unrestricted designated_ – funds which have been set aside by the Council for specific purposes.
_Restricted_ – funds that can only be used for particular restricted purposes within the objects of the Charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
14
**Energy Institute Report of the Council and Financial Statements 2024**
## **Notes on the financial statements**
## **Note 2 – Critical accounting judgements and estimates**
In preparing these financial statements, management has made judgements, estimates and assumptions that affect the application of the Energy Institute’s accounting policies and the reported assets, liabilities, income and expenditure and the disclosures made in the financial statements. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Key areas subject to judgement and estimation are as follows:
## **Defined benefit pension scheme liabilities**
The Energy Institute has obligations to pay pension benefits to certain employees. The cost of these benefits and the present value of the obligation depend on a number of factors, including; life expectancy, salary increases, asset valuations and the discount rate on corporate bonds. Management estimates these factors in determining the net pension obligation in the balance sheet as advised by an independent actuarial adviser. The assumptions reflect historical experience and current trends. The FRS 102 valuation has presented a surplus in the fund. The pension plan triennial valuation for the year ended 31 December 2022 resulted in a surplus of £548,000. According to the Trust Deed and Rules, the Principal Company must agree to surplus assets being used to augment members’ benefits and in the event that the Scheme winds up and all liabilities are discharged, any assets then remaining can be paid to the Employer. To recover some of the surplus, the employer and pension trustees have agreed to transfer the annual administration expense obligation to the plan and reduce the employer contributions.
## **Leasehold premises**
Following the completion of the refurbishment works in 2016, it was concluded that no further depreciation expense should be recognised in respect of the leasehold premises as any provision would not be material to the accounts due to its very long useful economic life and high residual value. This has been reviewed and Council have concluded that there have been no changes in circumstances.
## **Note 3 - Incoming resources from charitable and other trading activities**
|Membership subscriptions
Knowledge sharing activities
Professional development activities
Technical activities
Other|**Group**
**Group**
**Charity**
**Charity**
**2024**
**2023**
**2024**
**2023**
**£’000**
**£’000**
**£’000**
**£’000**
2,043
1,963
2,040
1,959
2,405
2,149
2,014
1,685
1,485
1,290
1,412
1,149
4,443
4,276
4,443
4,276
30
40
30
40
**10,406**
**9,718**
**9,939**
**9,109**|
|---|---|
## **Note 4 – 2024 Expenditure on charitable and other trading activities**
|Technical activities
Knowledge sharing activities
Professional development activities
External affairs
Charitable activities
Charitable and other trading expenditure in subsidiaries
Group total|**Direct costs**
**Staff**
**Direct costs**
**Other**
**Support**
**costs**
**2024 Total**
**£’000**
**£’000**
**£’000**
**£’000**
1,833
2,394
595
4,822
887
1,570
794
3,251
774
527
397
1,698
307
126
198
631|
|---|---|
||3,801
4,617
1,984
10,402
-
239
-
239
**3,801**
**4,856**
**1,984**
**10,641**|
15
**Energy Institute Report of the Council and Financial Statements 2024**
## **Notes on the financial statements**
## **Note 4 – 2023 Expenditure on charitable activities and other trading activities**
|Technical activities
Knowledge sharing activities
Professional development activities
External affairs
Charitable activities
Charitable and other trading expenditure in subsidiaries
Group total
**Note 5 – Analysis of support costs**
Support staff costs
Building facilities and services
Management & Human Resources
Finance
Information Technology
Included in support costs are governance costs relating to:
Auditor’s remuneration
Actuarial
Legal and consultancy
Salaries
**Note 6 – Staff costs**
Salaries
Social security
Stakeholder pension
Defined benefit pension service cost
Redundancy
Temporary/sub-contract staff
Other staff related costs|**Direct costs**
**Staff**
**Direct costs**
**Other**
**£’000**
**£’000**
1,749
2,079
855
714
731
578
295
115|**Support**
**costs**
**2023 Total**
**£’000**
**£’000**
534
4,362
713
2,282
356
1,665
178
588|
|---|---|---|
||3,630
3,486
-
283|
1,781
8,897
-
283
**1,781**
**9,180**|
||**3,630**
**3,769**||
|||**2024**
**£’000**
**2023**
**£’000**
1,329
1,106
254
215
106
168
71
84
224
208
**1,984**
**1,781**|
|||**2024**
**£’000**
**2023**
**£’000**
28
28
4
4
23
39
5
5
**60**
**76**|
|||**2024**
**£’000**
**2023**
**£’000**
3,884
3,597
430
400
290
256
107
17
-
24
333
387
87
53
**5,131**
**4,734**|
## **Remuneration of key management personnel**
The key management personnel of the Energy Institute comprises 4 directors and chief executive. Total remuneration, employer’s national insurance contributions and pensions for these key management personnel were £672,000 (2023: £629,000).
16
**Energy Institute Report of the Council and Financial Statements 2024**
## **Notes on the financial statements**
## **Note 6 – Staff costs (continued)**
The average number of employees was 97 (2023: 90).
|The following numbers of staff have salaries above £60,000:|**2024**|**2023**|
|---|---|---|
|Between £60,000
£70,000|2|1|
|Between £70,001
£80,000|3|4|
|Between £80,001
£90,000|3|1|
|Between £90,001
£100,000|1|1|
|Between £100,001
£110,000|-|1|
|Between £110,001
£120,000|1|-|
|Between £180,001-£190,000|-|1|
|Between £190,001-£200,000|1|-|
Pension contributions paid in respect of these individuals totalled £117,000 (2023: £101,000).
## **Trustees’ reimbursed expenses**
Due to the nature of the Energy Institute, most Trustees will be associated with organisations which may have a financial relationship with the Energy Institute. Opportunity is given for disclosure of any financial or other interest prior to any Council discussion. Trustees are allowed to be paid according to the Royal Charter for services provided to the Charity. During the year no trustees were remunerated (2023: no trustees). Trustees’ expenses for travel and accommodation reimbursed during the year amounted to £5,009 (2023: £8,442) in respect of 4 trustees.
## **Note 7 – Subsidiary undertakings**
Energy Institute has 3 trading international branch subsidiaries and 1 UK trading subsidiary, which are controlled by the Charity.
EI Services Limited was incorporated on 17 May 2017, a wholly owned UK subsidiary company of Energy Institute, limited by shares.
Energy Institute Hong Kong (Branch) Ltd is incorporated in Hong Kong under the Companies Ordinance and limited by shares wholly owned by the EI.
Energy Institute Nigeria is a Company Limited by Guarantee with EI as the sole member. Energy Institute Nigeria is incorporated in Nigeria and registered with the Corporate Affairs Commission.
Energy Institute (EI) Singapore Pte Ltd is incorporated in Singapore as a private limited company and wholly owned by the EI.
|**Trading subsidiaries’ results**
Turnover
Cost of sales
Gross profit
Admin/other costs
Trading profit/(loss)
Grants paid from EI
Net income/ (outgoings)
Amount payable by qualifying
charitable donation to Energy Institute
Retained profit brought forward
Retained profit carried forward and net
assets|**EI Services**
**Ltd**
**Energy**
**Institute**
**Hong Kong**
**(branch)**
**Ltd**
**Energy**
**Institute**
**Nigeria**
**Ltd**
**Energy**
**Institute**
**Singapore**
**Ltd**
**Total**
**2024**
**Total**
**2023**
**£’000**
**£’000**
**£’000**
**£’000**
**£’000**
**£’000**
376
125
26
-
527
626
(98)
(147)
(34)
-
(279)
(273)|
|---|---|
||278
(22)
(8)
-
248
353
(7)
(3)
(26)
(5)
(41)
(23)|
||271
(25)
(34)
(5)
207
330
-
10
-
3
13
3|
||271
(15)
(34)
(2)
220
333
(271)
-
-
-
(271)
(334)|
||-
30
62
2
94
95
**-**
**15**
**28**
**-**
**43**
**94**|
17
**Energy Institute Report of the Council and Financial Statements 2024**
## **Notes on the financial statements**
## **Note 8 - Tangible fixed assets (Group and Charity)**
|**a) Cost**
Cost at 1 January 2024
Additions
**Cost at 31 December 2024**
**b) Depreciation**
Depreciation at 1 January 2024
Charge for the year
**Depreciation at 31 December 2024**
**Net book value at 31 December 2024**
**Net book value at 31 December 2023**|**Leasehold**
**premises**
**Leasehold**
**improvements**
**Plant and**
**equipment**
**ICT, Fixtures**
**and fittings**
**Total**
**£’000**
**£’000**
**£’000**
**£’000**
**£’000**
4,250
2,220
315
567
7,352
-
-
-
105
105|
|---|---|
||4,250
2,220
315
672
7,457|
||462
167
164
478
1,271
-
22
15
48
85|
||462
189
179
526
1,356|
||**3,788**
**2,031**
**136**
**146**
**6,101**
**3,788**
**2,054**
**151**
**89**
**6,082**|
The lease on the premises at 61 New Cavendish Street has 934 years to run until its expiry. On 17 September 2002, Jeremy James & Company, estate agents, provided a valuation report on an open market value basis on the premises at 61 New Cavendish Street and valued the premises at £4,250,000. This was the effective cost of the lease when it was transferred to the Energy Institute on 1 July 2003. In 2016, Council reviewed the categorisation, depreciable amounts and useful economic lives of tangible fixed assets following the completion of the refurbishment works. It was concluded that no further depreciation expense should be recognised in respect of the leasehold premises as any provision would not be material to the accounts due to its very long useful economic life and high residual value. This has been reviewed and Council have concluded that there have been no changes in circumstances.
## **Capital commitments**
There were no capital commitments as at 31 December 2024 (2023: Nil).
## **Note 9 – Investments (Group and Charity)**
|**Sarasin Endowments Fund**
_Long term investments_
**Market values**|**£**
**£’000**
4,110
328|
|---|---|
|01-Jan-24
Net gain on revaluation
**31-Dec-24**
**Historical cost**||
||**4,438**|
||2,852
2,852|
|01-Jan-24
31-Dec-24||
Council is not expecting to require disposal of the long-term investment portfolio in the foreseeable future but may draw upon the medium-term portfolio if required.
## **Unlisted investments**
The Energy Institute has 100 ordinary shares of £1, in EI Services Ltd.
18
**Energy Institute Report of the Council and Financial Statements 2024**
## **Notes on the financial statements**
## **Note 10 – Debtors**
|Trade debtors
Prepayments and accrued income|**Group**
**Group**
**Charity**
**Charity**
**2024**
**2023**
**2024**
**2023**
**£’000**
**£’000**
**£’000**
**£’000**
1,729
1,233
1,715
1,436
705
579
691
596
**2,434**
**1,812**
**2,406**
**2,032**|
|---|---|
## **Note 11 – Creditors**
|**Amounts falling due within one year**
Trade creditors
Taxation and social security
Accruals
Deferred Income|**Group**
**Group**
**Charity**
**Charity**
**2024**
**2023**
**2024**
**2023**
**£’000**
**£’000**
**£’000**
**£’000**
556
301
556
357
150
151
105
131
428
438
365
429
2,024
1,216
1,701
879
**3,158**
**2,106**
**2,727**
**1,796**|
|---|---|
All amounts received in advance and deferred income relate to the subsequent financial year and are released to income in that year.
## **Note 12 - Retirement benefits**
## **Stakeholder contributions**
The Energy Institute operates defined contribution pension arrangements for employees. Employer contributions made during the period in respect of 82 (2023: 75) employees were £302,000 (2023: £256,000). The Energy Institute entered into a salary sacrifice scheme agreement with stakeholder pension scheme members from the 1 January 2020.
## **Defined benefit pension scheme**
The Energy Institute operates a defined benefit pension plan, the Energy Institute Pension and Dependents Benefits Plan which has 5 active members. The plan funds are administered by Trustees and are independent of the Energy Institute's finances. Contributions are paid to the plan in accordance with the recommendations of an independent actuarial adviser. Details in respect of the scheme are provided below. The benefits have been valued by projecting forward the results from the FRS102 disclosures, as at 31 December 2024, making adjustments to reflect benefits paid out of the Plan, additional accrual and differences between the assumptions used at this year-end and those at the previous year-end. The value of the defined benefit liabilities has been measured using the projected unit method. The full actuarial valuation as at 31 December 2022 showed a surplus of £548,000.
The Trustees reviewed and accepted an updated investment strategy in November 2024, which proposed an investment allocation to protect the Plan’s funding position in the medium term, following completion of the valuation as at 31 December 2022. The advice continued the previous protection strategy, with more suitable funds aligned to the liabilities and appropriate hedging against interest rate and inflation movements. This medium-term strategy was implemented, and funds were transferred on 2 December 2024. A Long-term strategy is expected to commence in conjunction with the conclusion of the employer’s long-term review of the Plan in the coming years.
19
**Energy Institute Report of the Council and Financial Statements 2024**
## **Movement in assets during the period**
||**31 December 2024**|**31 December 2024**|**31 December 2024**|**31 December 2023**|**31 December 2023**|
|---|---|---|---|---|---|
|**Principal actuarial assumptions**||**_% a year_**||**_% a year_**||
|Discount rate||5.4%|||4.5%|
|Retail Price Inflation||3.3%|||3.2%|
|Consumer Price Inflation||3.0%|||2.8%|
|Salary growth||2.6%|||2.3%|
|Rate of increases to pensions in payment||||||
|Price inflation (CPI) subject to a maximum of 2.5% p.a.||2.0%|||1.9%|
|Price inflation (CPI) subject to a maximum of 3% p.a.||2.2%|||2.1%|
|Price inflation (CPI) subject to a maximum of 5% p.a.||2.9%|||2.7%|
|Price inflation (CPI) subject to a maximum of 5% p.a.||||||
|and a minimum of 3% p.a.||3.7%|||3.6%|
|**Demographic assumptions**||||||
|Mortality after retirement||||||
|-
Base table|S3PXA series year of|||
S3PXA series year of||
|||birth (YOB) tables||birth (YOB) tables||
|-
Future improvements|CMI_2023_M/F (1%)|||CMI_2022_M/F (1%)||
|Proportion taking tax free cash||100%|||100%|
||**2024**|**2024**||**2023**|**2023**|
|**Assumed life expectancy at aged 65**|**Males**|**Females**||**Males**|**Females**|
|Current pensioners|21.4 years|
23.9 years|21.4 years||
23.8 years|
|Retiring in 20 years|22.3 years|
25.0 years|22.3 years||
25.0 years|
|**Changes in fair value of plan assets**|**31 December 2024**|||**31 December 2023**||
|||**£’000**|||**£’000**|
|Opening fair value of plan assets||7,464|||7,187|
|Employer contributions||66|||89|
|Employee contributions||24|||23|
|Benefits paid||(305)|||(296)|
|Expenses paid||(104)|||-|
|Expected return on scheme assets||329|||341|
|Actuarial gain/ (losses) on assets||(768)|||120|
|Closing fair value of plan assets||6,706|||7,464|
|Actual return on plan assets||(439)|||461|
The plan assets are invested in three Legal and General Investment Management funds.
|**Asset Allocation**|**31 December 2024**|**31 December 2023**|
|---|---|---|
|Self Sufficiency (credit) funds|89.2%|-|
|Global Equity fund|10.8%|-|
|Diversified Growth Fund||14.-%|
|Bonds||23.3%|
|Gilts||62.7%|
20
**Energy Institute Report of the Council and Financial Statements 2024**
## **Movement in assets during the period**
|**Changes in present value of defined benefit obligation**
Opening defined benefit obligation
Current service cost
Employee contributions
Interest cost
Benefits paid
Remeasurement loss/(gain) on defined benefit obligation:
-
Impact of experience
-
Impact of amended financial assumptions
-
Impact of amended mortality assumptions
Closing defined benefit obligation
**Pension expense**
Analysis of the amount charged to income and expenditure
Current service cost
Expenses
Interest on net liability|**31 December 2024**
**£’000**
**31 December 2023**
**£’000**
6,278
6,491
55
55
24
23
277
307
(305)
(296)
(21)
(479)
(613)
290
(6)
(113)|
|---|---|
||5,689
6,278|
||**31 December 2024**
**£’000**
**31 December 2023**
**£’000**
(55)
(55)
(104)
-
52
34|
||(107)
(21)|
The Scheme is closed to new entrants. As a result, the age profile of the active members will tend to rise and under the projected unit method the current service cost will tend to increase with time.
|**Other comprehensive income**
Actual less expected return on plan assets
Experience gains on liabilities
Change in assumptions
Actuarial (loss)/gain recognised in OCI
**Balance sheet position**
Present value of defined benefit obligation
Fair value of plan assets
Net defined benefit pension asset|**31 December 2024**
**£’000**
**31 December 2023**
**£’000**
(768)
120
21
479
619
(177)|
|---|---|
||(128)
422|
||**31 December 2024**
**£’000**
**31 December 2023**
**£’000**
(5,689)
(6,278)
6,706
7,464|
||1,017
1,186|
21
**Energy Institute Report of the Council and Financial Statements 2024**
## **Notes on the financial statements**
## **Note 13 – 2024 Group Reserves**
|**Unrestricted reserves**
_General reserves_
_Pension reserve_
_Designated reserves_
Powerful Women reserve
UK WPC reserve
Statistical Review reserve
Fixed asset reserve
**Total unrestricted reserves**
**Restricted reserves**
Partner technical projects
Shell hearts and minds
General prize fund
Benevolent fund
**Total restricted reserves**
**Total Reserves**
**ote 13 – 2024 Charity Reserves**
**Unrestricted reserves**
_General reserves_
_Pension reserve_
_Designated reserves_
Powerful Women reserve
UK WPC reserve
Statistical Review reserve
Fixed asset reserve
**Total unrestricted reserves**
**Restricted reserves**
Partner technical projects
Shell hearts and minds
General prize fund
Benevolent fund
**Total restricted reserves**
**Total Reserves**|**1 January**
**2024**
**Incoming**
**resources**
**Resources**
**expended**
**Transfers and**
**other**
**gains/(losses)**
**31 December**
**2024**
**£’000**
**£’000**
**£’000**
**£’000**
**£’000**
1,286
7,654
(7,826)
181
1,295
1,186
-
(41)
(128)
1,017|
|---|---|
||2,472
7,654
(7,867)
53
2,312|
||90
468
(498)
-
60
8
11
(7)
-
12
21
325
(346)
-
-
6,082
-
(86)
105
6,101|
||6,201
804
(937)
105
6,173|
||8,673
8,458
(8,804)
158
8,485|
||2,439
2,053
(1,824)
-
2,668
453
31
(1)
-
483
5
-
-
-
5
515
19
(12)
42
564|
||3,412
2,103
(1,837)
42
3,720
12,085
10,561
(10,641)
200
12,205|
||**1 January**
**2024**
**Incoming**
**resources**
**Resources**
**expended**
**Transfers and**
**other**
**gains/(losses)**
**31 December**
**2024**
**£’000**
**£’000**
**£’000**
**£’000**
**£’000**
1,206
7,452
(7,587)
181
1,252
1,186
-
(41)
(128)
1,017|
||2,392
7,452
(7,628)
53
2,269|
||90
468
(498)
-
60
8
11
(7)
-
12
21
325
(346)
-
-
6,082
-
(86)
105
6,101|
||6,201
804
(937)
105
6,173|
||8,593
8,256
(8,565)
158
8,442|
||2,439
2,053
(1,824)
-
2,668
453
31
(1)
-
483
5
-
-
-
5
515
19
(12)
42
564|
||3,412
2,103
(1,837)
42
3,720
12,005
10,359
(10,402)
200
12,162|
## **Note 13 – 2024 Charity Reserves**
22
**Energy Institute Report of the Council and Financial Statements 2024**
## **Notes on the financial statements**
## **Note 13 – 2023 Group Reserves**
|**Unrestricted reserves**
_General reserves_
_Pension reserve_
_Designated reserves_
Powerful Women reserve
UK WPC reserve
Statistical Review reserve
Fixed asset reserve
**Total unrestricted reserves**
**Restricted reserves**
Partner technical projects
Shell hearts and minds
General prize fund
Benevolent fund
**Total restricted reserves**
**Total Reserves**|**1 January**
**2023**
**Incoming**
**resources**
**Resources**
**expended**
**Transfers and**
**other**
**gains/(losses)**
**31 December**
**2023**
**£’000**
**£’000**
**£’000**
**£’000**
**£’000**
905
7,376
(7,150)
155
1,286
696
-
68
422
1,186|
|---|---|
||1,601
7,376
(7,082)
577
2,472|
||65
395
(370)
-
90
16
-
(8)
-
8
-
150
(129)
-
21
6,114
-
(79)
47
6,082|
||6,195
545
(586)
47
6,201|
||7,796
7,921
(7,668)
624
8,673|
||2,034
1,900
(1,495)
-
2,439
427
29
(3)
-
453
6
-
(1)
-
5
503
19
(13)
6
515|
||2,970
1,948
(1,512)
6
3,412
10,766
9,869
(9,180)
630
12,085|
## **Note 13 – 2023 Charity Reserves**
|**Unrestricted reserves**
_General reserves_
_Pension reserve_
_Designated reserves_
Powerful Women reserve
UK WPC reserve
Statistical Review reserve
Fixed asset reserve
**Total unrestricted reserves**
**Restricted reserves**
Partner technical projects
Shell hearts and minds
General prize fund
Benevolent fund
**Total restricted reserves**
**Total Reserves**|**1 January**
**2023**
**Incoming**
**resources**
**Resources**
**expended**
**Transfers and**
**other**
**gains/(losses)**
**31 December**
**2023**
**£’000**
**£’000**
**£’000**
**£’000**
**£’000**
819
7,099
(6,867)
155
1,206
696
-
68
422
1,186|
|---|---|
||1,515
7,099
(6,799)
577
2,392|
||65
395
(370)
-
90
16
-
(8)
-
8
-
150
(129)
-
21
6,114
-
(79)
47
6,082|
||6,195
545
(586)
47
6,201|
||7,710
7,644
(7,385)
624
8,593|
||2,034
1,900
(1,495)
-
2,439
427
29
(3)
-
453
6
-
(1)
-
5
503
19
(13)
6
515|
||2,970
1,948
(1,512)
6
3,412
10,680
9,592
(8,397)
630
12,005|
23
**Energy Institute Report of the Council and Financial Statements 2024**
## **Notes on the financial statements**
## **Designated reserves**
_UK WPC:_ Some income generated from UK WPC activities is allocated to build reserves which can support participation in the WPC Youth Committee and other WPC or UK WPC activities.
_Powerful Women:_ Some income generated from Powerful Women activities is allocated to build reserves which can support participation in the activity.
Statistical Review reserve: Some income generated from the Statistical Review of World Energy is allocated to build reserves which can support the activity. Resource has been provided in kind from the partner companies and has been accounted for within the designated reserve.
_Fixed asset reserve:_ represents the funds which are invested in the Institute’s fixed assets and therefore not readily available to be spent.
## **Restricted reserves**
_Partner technical projects:_ Funds provided specifically for projects advancing scientific and technical knowledge relating to health, safety, environment and standards relating to the energy industry.
_Shell hearts and minds:_ The Energy Institute sells the Hearts and Minds toolkit on behalf of Shell Exploration and Production Ltd, any surplus is held for future investment in the development of the toolkit and related Human Factors projects.
_General prize fund;_ The objects include:
The furtherance of education in the field of the science of energy and fuels by the award of prizes, the provision of grants, the funding of exhibitions and seminars, the provision of continuing professional education and the provision of scholarships.
_Benevolent fund_ : The fund provides assistance for the benefit of deserving members of the Energy Institute and their dependants to improve quality of life and provide educational opportunities.
## **Note 14 – 2024 Group Net assets by fund**
The various group reserves are represented by the Energy Institute’s assets and liabilities as summarised below:
|Unrestricted reserves
Pension reserve
Designated reserves
Restricted reserves
Total|**Tangible**
**fixed &**
**investment**
**assets**
**Net**
**current**
**assets**
**Pension**
**reserve**
**31-Dec-24**
**£’000**
**£’000**
**£’000**
**£’000**
1,250
45
-
1,295
-
-
1,017
1,017
6,101
72
-
6,173|
|---|---|
||7,351
117
1,017
8,485
3,188
532
-
3,720
10,539
649
1,017
12,205|
## **Note 14 – 2024 Charity Net assets by fund**
The various charity reserves are represented by the Energy Institute’s assets and liabilities as summarised below:
|Unrestricted reserves
Pension reserve
Designated reserves
Restricted reserves
Total|**Tangible**
**fixed &**
**investment**
**assets**
**Net**
**current**
**assets**
**Pension**
**reserve**
**31-Dec-24**
**£’000**
**£’000**
**£’000**
**£’000**
1,250
2
-
1,252
-
-
1,017
1,017
6,101
72
-
6,173|
|---|---|
||7,351
74
1,017
8,442
3,188
532
-
3,720
10,539
606
1,017
12,162|
24
**Energy Institute Report of the Council and Financial Statements 2024**
## **Notes on the financial statements**
## **Note 14 – 2023 Group Net assets by fund**
The various group reserves are represented by the Energy Institute’s assets and liabilities as summarised below:
|Unrestricted reserves
Pension reserve
Designated reserves
Restricted reserves
Total|**Tangible**
**fixed &**
**investment**
**assets**
**Net**
**current**
**assets**
**Pension**
**reserve**
**31-Dec-23**
**£’000**
**£’000**
**£’000**
**£’000**
1,118
168
-
1,286
-
-
1,186
1,186
6,082
119
-
6,201|
|---|---|
||7,200
287
1,186
8,673
2,992
420
-
3,412|
||10,192
707
1,186
12,085|
## **Note 14 – 2023 Charity Net assets by fund**
The various charity reserves are represented by the Energy Institute’s assets and liabilities as summarised below:
|Unrestricted reserves
Pension reserve
Designated reserves
Restricted reserves
Total|**Tangible**
**fixed &**
**investment**
**assets**
**Net**
**current**
**assets /**
**(liabilities)**
**Pension**
**reserve**
**31-Dec-23**
**£’000**
**£’000**
**£’000**
**£’000**
1,118
88
-
1,206
-
-
1,186
1,186
6,082
119
-
6,201|
|---|---|
||7,200
207
1,186
8,593
2,992
420
-
3,412|
||10,192
627
1,186
12,005|
## **Note 15 – Related party transactions**
Transactions during the year with EI services Ltd, resulted in an amount due to the Energy Institute totalling £196,000 (2023: due to EI £380,000). Energy Institute raised invoices to EI Services Ltd totalling £95,000 (2023: £115,000) in respect of recharged costs. There are no other related party transactions that require disclosure.
25
**Energy Institute Report of the Council and Financial Statements 2024**
## **Notes on the financial statements**
## **Note 16 – Comparative Statement of Financial Activities**
## **Consolidated Statement of Financial Activities for the year ended 31 December 2023 (Including consolidated income and expenditure)**
|**Note**
**Income:**
_Income from charitable activities:_
Members’ subscriptions
Charitable activities
Other trading activities
3
Government grants
Investments
**Total income**
**Expenditure:**
Charitable activities
Other trading activities
**Total expenditure**
4
Net gains on investments
9
**Net (expenditure)/income**
Transfers between funds
**Other recognised gains/(losses):**
Actuarial gains on Pension Plan
12
**Net movement in funds**
**Reconciliation of funds:**
**Total funds brought forward**
**Total funds carried forward**
14|**2023**
**2023**
**2023**
**2023**|
|---|---|
||**Unrestricted**
**General**
**Designated**
**Restricted**
**Total**
**reserve**
**reserve**
**reserve**
**reserve**
**£’000**
**£’000**
**£’000**
**£’000**|
||1,959
-
-
1,959|
||4,817
545
1,934
7,296|
||463
-
-
463|
||7,239
545
1,934
9,718|
|||
||-
-
-
-|
||137
-
14
151|
||**7,376**
**545**
**1,948**
**9,869**|
||
|
||6,950
586
1,512
9,048|
||132
-
-
132|
||**7,082**
**586**
**1,512**
**9,180**|
|||
||202
-
6
208|
||496
(41)
442
897|
||(47)
47
-
-|
||
|
||422
-
-
422|
||**871**
**6**
**442**
**1,319**|
||
|
||1,601
6,195
2,970
10,766|
||**2,472**
**6,201**
**3,412**
**12,085**|
26
**Energy Institute Report of the Council and Financial Statements 2024**
## **Notes on the financial statements**
## **Note 16 – Comparative Statement of Financial Activities (Continued)**
## **Charity Statement of Financial Activities for the year ended 31 December 2023 (Including income and expenditure account)**
|**Note**
**Income:**
_Income from charitable activities:_
Members’ subscriptions
Charitable activities
3
Government grants
Donations
Investments
**Total income**
**Expenditure:**
Charitable activities
**Total expenditure**
4
Net gains on investments
9
**Net (expenditure)/income**
Transfers between funds
**Other recognised gains/(losses):**
Actuarial gains on Pension Plan
12
**Net movement in funds**
**Reconciliation of funds:**
**Total funds brought forward**
**Total funds carried forward**
14|**2023**
**2023**
**2023**
**2023**|
|---|---|
||**Unrestricted**
**General**
**Designated**
**Restricted**
**Total**
**reserves**
**reserves**
**reserve**
**reserves**
**£’000**
**£’000**
**£’000**
**£’000**|
||1,954
-
-
1,954|
||4,676
545
1,934
7,155|
||6,630
545
1,934
9,109|
|||
||-
-
-
-|
||334
-
-
334|
||135
-
14
149|
||**7,099**
**545**
**1,948**
**9,592**|
|||
||6,799
586
1,512
8,897|
||**6,799**
**586**
**1,512**
**8,897**|
|||
||202
-
6
208|
||502
(41)
442
903|
||(47)
47
-
-|
|||
||422
-
-
422|
||**877**
**6**
**442**
**1,325**|
|||
||1,515
6,195
2,970
10,680|
||**2,392**
**6,201**
**3,412**
**12,005**|
27