What’s it all about?

The government has required UK licensed electricity suppliers to obtain a proportion of the electricity they sell from a selection of eligible renewable sources (such as wind and solar power) since April 2002. This is known as the renewable obligation. Each year the percentage rises with the ultimate goal being to achieve 20% by 2020. Energy suppliers have to publish annually their fuel mix data.

The government records the generation of electricity via Renewable Obligation Certificates (ROCs). These store in digital form details of how electricity was generated, who generated it, and who eventually used it. For every 1,000 units (1MWh) of electricity an energy company generates from renewable sources they receive one ROC. A company that generates more than its renewable obligation can sell ROCs to energy suppliers who have failed to meet their target. In theory power companies are financially motivated to invest in renewable energy generation projects.

The price of one ROC is set by the market and reflects the size of the difference between the percentage of renewable energy electricity generated in the UK and the renewable obligation percentage. The bigger the shortfall, the more expensive each ROC and the more green electricity generators are rewarded for their efforts. Some energy companies “retire” ROC’s each year to encourage the price to rise. This should in theory increase the attractiveness of generating energy from renewable sources.

How much CO2 is produced by the different electricity energy sources? 

Have a look at our 'Why does coal need to be cut?' article, where we break down the the different fuel sources (gas, coal, nuclear, renewables...) and calculate the emissions for each. In 2007 coal was responsible for about 60% of electricity emissions.

Why switch to a green tariff?

You’ve probably figured out by now that a “green tariff” relates to the use of renewable sources (wind, solar etc) and a “brown tariff” to the burning of fossil fuels (coal, gas etc).

Sourcing electricity from renewable sources not only helps to reduce your carbon footprint but these sources are also sustainable (provided the wind keeps blowing and the sun keeps shining). By switching from a traditional fossil fuel or “brown tariff” you are also sending a message to your existing supplier about your positive attitude towards sustainable resources.

However…genuinely green tariffs can be more expensive (for a number of reasons) although in time with more windfarms etc is should become more comparable with brown electricity. So if you are not prepared to spend a bit more money on electricity to reduce your carbon emissions and make a statement then you might not want to read on…

 

OK how much CO2 can I save in a year?

Great you’re still with us!

Well to take a simple example of a home with an annual electricity bill of around £250 it is estimated that you can save just under 1 tonne of CO2. That’s roughly 10% of the likely total carbon footprint of the average person in the UK. That’s a great start!

 

So what choices do I have on “green tariffs”?

This is where it get’s fiendishly difficult – so much so that Friends of the Earth have given up on producing a league table of green suppliers.

The problem (and the Advertising Standards Authority are beginning to wield the stick here) is that 100% doesn’t always mean 100%. 

Most electricity suppliers have only a small percentage of renewable energy in their mix. However they may advertise a 100% green tariff. Often this means that the company will match every £1 you spend by investing £1 in renewables or they may buy CO2 offsets in developing countries. But of course we know that these companies have to invest in renewables under the renewable obligation. Even if you stuck to a “brown tariff” the company would in all likelihood still be investing in renewables or buying ROC’s.

However, some companies retire some of their ROC's each year (such as Ecotricity and Good Energy), this means they add extra electricity generation capacity, above the governments yearly obligation. So generally speaking, companies that retire ROC's are better.

If you would like to look at what’s on offer and the mix take a look at the following weblinks:

http://green.energyhelpline.com/energy

http://www.greenelectricity.org/domestic.html

http://www.uswitch.com/gas-electricity/

 

So who do PCAN recommend?

We currently prefer Ecotricity. This is because of their commitment to increase the number of wind turbines producing electricity and the fact that they retire some of their ROCs each year.
Good Energy are another one to consider.

We have adverts on our site for both companies. If you click on the adverts and decide to sign up with one of them, they will pay us some money. So if you want to help us and the environment, you can do both by signing up via the adverts.

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