e.on's paper green electricity

 E.on is making a big thing of its renewable electricity tariff in a well-crafted TV commercial which is difficult to get away from. However, e.on's electricity is not quite as green as it appears. Although it has increased its own renewable capacity and also buys directly from renewable generators, the company stll relies on certificates, known as REGOs, to make up the 100% green energy which it claims.

As Which? magazine explains, "Renewable Energy Guarantee of Origins (REGO) A REGO certificate is issued to a generator for every megawatt hour (MWh) of renewable power they put into the grid. A generator can sell them alongside renewable power, or separately. Energy firms buy them to show the proportion of renewable electricity they sell. Some buy them alongside renewable power directly from a generator, while others buy them separately – and after they have bought the electricity for their customers. Energy firms must use them to prove the source of their electricity each year, to energy regulator Ofgem."

That same article, highlights only two suppliers to subscribe to if you want to be confident you’re helping increase the amount of new renewable electricity generated. 

"Ecotricity uses customers’ bills to finance building new sources of renewable energy. Good Energy sets up contracts with small generators (eg farmers with fields of solar panels) who might otherwise struggle to get a good price for their power. Plus its high-tech forecasting ensures it knows exactly how much power its generators are feeding into the grid so it can buy enough to meet customers’ use.

"But tariffs from these suppliers can be among the most expensive. Energy regulator Ofgem recognised this when it gave both firms, plus Green Energy UK, an exemption from the price cap on standard tariffs. It found that their higher prices are directly due to the support they give to generating renewable electricity. 

"But ‘pale green’ firms selling 100% renewable power backed only by REGOs ‘give the illusion of greenness to customers which can be misleading’, says Dale Vince, Ecotricity’s founder. Good Energy’s regulation and compliance manager Tom Seward explained that their tariffs ‘look like something we spend a huge amount of time on [to try to] create a more renewable energy system’. 

"These firms aren’t doing anything wrong according to Ofgem rules, but the rules aren’t clear enough to help customers make an informed decision."