With all of the big 6 energy companies and a number of smaller independent companies now selling green electricity how are we supposed to know which tariffs are genuinely encouraging new renewable energy generation in the UK and which are begrudgingly doing the bare minimum?
All electricity retailers in the UK are required to supply a proportion of their electricity from renewable sources (currently 11%). If they don’t they have to pay a ‘buyout’ fee – a bit like a fine. So how do you find out whether your chosen green electricity supplier is being forced into supplying your electricity from renewable sources as part of its legal obligation or whether it is going the extra mile in encouraging new renewable energy because you are paying a green electricity rate?
Each electricity supplier has to provide information to Ofgem on the fuel mix that makes up its supply to domestic customers. This is public information and from this we can ascertain whether companies are doing more than their fair share or less. For example last year Good Energy provided electricity matched from 100% renewable energy sources compared with a UK average of 7.9%. Further Good Energy’s tariff at around 12.9 pence per kWh depending on the area, is competitive with the big 6 electricity prices and in many cases cheaper. By comparison EDF only supplied 3.9% from renewable sources and Scottish Power only 7.6%.
None of the electricity from Good Energy is from nuclear and the company is currently sourcing electricity from a whopping 1000 independent and small scale renewable energy generators. Those independent generators are harnessing wind energy, hydro, solar energy and biomass. For example Good Energy buy solar power from St Aldhelm’s Church in London and housing association Peabody. They even buy electricity from a prototype onshore wave generator on Skye. So before you sign up to a green electricity tariff, check out how much green electricity your company is genuinely supplying and where it is coming from.
