WEEAC
All energy suppliers in Britain are bound by legislation to supply a certain amount of energy from renewable sources to their customers. The percentage of energy supplied is increasing year on year so that by 2015, 15% of all energy will come from renewables. The current rate is 9% and each supplier has to meet this figure as it increases each year. If suppliers meet the criteria they obtain a Renewables Obligation Certificate (ROC). ROC's can be issued if the company either invests in the development of renewable energy or supplies energy sourced from renewables.
Companies who source more than the minimum requirement can sell their ROC‘s to those suppliers who are falling short of the target and so there is a market between energy firms which involves the buying and selling of ROC’s. Currently the UK is only producing just under 5% renewable energy into the overall energy mix so in order for suppliers to meet their targets they inevitably need to buy ROC's.
As a result, all energy companies now offer “green tariffs” to their customers. You will notice that the price per kilowatt hour KwH is generally more expensive than standard tariffs. Renewable energy is currently more expensive than traditional forms of energy and so the price is passed on to customers. However the inflated price also covers the purchase of ROC's so the energy company can meet their 9% renewables targets or for carbon offsetting, charitable donations and renewable energy research and development projects.
As a consumer it is important for you to decide what you want from your green tariff. Green Energy is currently the only supplier in the UK actually supplying 100% renewable energy to consumers. Ecotricity provide a combination along with a few other suppliers but most green tariffs pay for ROC's and investment into renewable technologies, which in itself is still proactively supporting the renewables industry. If your green tariff only goes towards carbon offsetting then remember this will not actually go towards the production of more green energy but only towards the supplier meeting its legal obligations.
If it is more important to you to actually receive energy powered from renewables, Green Energy would be the first place for you to start. Whatever green tariff you decide upon, you are taking a very positive step towards helping the UK become sustainable in energy supply and in promoting and developing the renewables industry.
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