As little as £1.45 a year is being spent creating renewable power for each customer signed up to a green tariff at some of Britain’s biggest energy suppliers. A report by the consultancy Baringa has found that rather than generating renewable fuel or buying it directly from plants, many companies are buying ultra-cheap certificates that allow them to market their tariffs as green. For example, Bulb, which has more than 1.6 million customers, promises to provide “100 per cent renewable electricity”. However, 96 per cent of its green power is paid for through Renewable Energy Guarantee of Origin certificates, known as Regos. Renewable power plants, such as wind farms, obtain Regos from Ofgem, the energy regulator, as certification that they are generating supply. They are allowed to sell them on to providers separately from the power they certify. Prices are low: the cost of being allowed to market a tariff as “100 per cent green” is about £1.45 per customer per year. Industry experts have called on the government to overhaul the marketing of green tariffs so households understand what they are signing up for.
Times 1st May 2021 read more »