Green Electricity
UK electricity consumers have been able to choose their own supplier since 1998. Although most of the competition has been about who can offer the best price, some people have taken the opportunity to choose the most environmentally friendly electricity supplier. Green supply tariffs are now seen as a useful tool in contributing to the development of renewable generation and in meeting the UK’s carbon emission targets.
The types of tariff available
Opting for a green tariff currently means one of three things:
- ‘Green’ source electricity – this is where an energy supplier will guarantee to buy, from a renewable generator, a percentage of electricity to match every unit of electricity used by the consumer.
- ‘Green’ fund – these tariffs are designed to support the construction of new renewable sources of electricity generation, environmental causes or new research and development projects.
- Carbon offset – these tariffs help reduce or offset the carbon dioxide emissions or ‘carbon footprint’ produced by an average household, for example, by planting trees.
UK Energy Watchdog energywatch has produced a guide to all the green tariffs currently available. The guide does not evaluate a tariff’s "greenness" (there's currently no independent accreditation or audit schemes, but see below for possible changes currently in the pipeline) rather it categorises and gives background information about each tariff to help you make a choice.
If you want to switch to a ‘green’ product there are a number of different tariffs currently offered by suppliers, which energywatch has categorised on their website.
Changes in the pipeline for green tariffs
A study by the National Consumers' Council (NCC) in 2006 has highlighted that there is considerable customer confusion and mistrust regarding the benefits associated with green tariffs. The Advertising Standards Authority has also made rulings in respect of the advertising of green tariffs by a supplier which concluded that the claims made by that supplier could not be substantiated.
Consequently, the Energy Regulator, Ofgem is to publish a revised set of industry guidelines in the autumn to boost consumer confidence and make choosing a green tariff less confusing. It is expected that all green tariffs will be awarded a rating ranging from 1 – 5 stars based on the level of carbon each green tariff uses. The table below is an illustrative example of how any such scheme would work.
| Carbon Emissions Indicator | Environmental Benefits | ||||
|---|---|---|---|---|---|
| Medium | Low | Zero (or close) | Efficiency | Waste | |
| Supply Offering 1 Primary fuel = Wind Turbine |
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| Supply Offering 2 Primary fuel = Good Quality CHP |
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Finally, you should also remember that even if you are buying green electricity, it is important not to waste power by being as energy efficient as possible - a kilowatt not used is the cleanest kilowatt of all!
