{"id":147,"date":"2020-10-09T15:58:00","date_gmt":"2020-10-09T14:58:00","guid":{"rendered":"https:\/\/www.goodenergy.co.uk\/businesses\/?p=147"},"modified":"2023-07-27T16:41:19","modified_gmt":"2023-07-27T15:41:19","slug":"big-suppliers-dodge-renewable-energy-support","status":"publish","type":"post","link":"https:\/\/www.goodenergy.co.uk\/business\/insights\/big-suppliers-dodge-renewable-energy-support\/","title":{"rendered":"Some of the biggest suppliers are dodging renewable energy costs"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">We think most people would expect their supplier to use their energy bills to buy renewable energy in the UK.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Last year, Good Energy commissioned a poll which found that 65% of people agreed that \u201cI would choose a green tariff if it supported our move to a new clean energy system\u201d.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We agree, and that\u2019s why we buy our renewable power direct from a community of 1,700 independent, UK-based renewable generators. We also own six solar farms and two wind farms. We\u2019ve done this for 20 years.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, some suppliers take a different view with a very weak commitment, if any, to grow more renewable energy in Britain.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We\u2019ve done&nbsp;<a href=\"https:\/\/www.goodenergy.co.uk\/media\/18730\/renewable-certificates-in-europe-research-note.pdf\">some analysis<\/a>&nbsp;of the energy market to work out how suppliers are justifying their renewable claims.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Our findings show that some of Britain\u2019s biggest energy suppliers are bulk-buying cheap certificates from outside the UK to \u2018prove\u2019 their tariffs are green. What\u2019s more, this practice allows these suppliers to legitimately avoid paying into government-mandated renewable energy schemes at home.<\/p>\n\n\n\n<h2 id=\"how-is-this-possible\" class=\"wp-block-heading\">How is this possible?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">In previous posts, we\u2019ve highlighted the widespread problem of greenwashing in the energy market. Take a look&nbsp;<a href=\"https:\/\/www.goodenergy.co.uk\/blog\/2019\/03\/27\/shell-energy-s-renewable-promise-highlights-the-problem-with-regos\/\">here<\/a>,&nbsp;<a href=\"https:\/\/www.goodenergy.co.uk\/blog\/2019\/07\/15\/eon-is-moving-its-customers-to-a-52-renewable-48-greenwash-tariff\/\">here<\/a>, or&nbsp;<a href=\"https:\/\/www.goodenergy.co.uk\/blog\/2020\/05\/29\/ovo-energy-s-zero-carbon-claims-have-zero-credibility\/\">here<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Recent years have seen a surge in suppliers buying second-hand renewable certificates in the UK without buying any renewable power at all. This is harming the shift to clean energy and holding back the fight against climate change.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Our research has found that some suppliers are very active with this same practice but in other European countries. Last year, the number of European \u2018Guarantees of Origin\u2019 in the UK market reached 57.9 million. This is an increase of 41% from 40.9 million on the previous year.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">British Gas, the UK\u2019s largest energy company, is the largest user &#8211; purchasing 20 million certificates. This is twice as many as anyone else and accounted for 35% of the entire market for the past year. Doing so allows British Gas to say its tariff is renewable, even though they haven\u2019t bought this renewable power in Britain.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>Customers should know what they are buying when they join a green tariff. This is a question of being open and transparent.<\/p><\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">All suppliers have to pay into government schemes to support more renewable energy in the UK. Buying European certificates on the cheap allows suppliers to avoid these costs for reasons which aren\u2019t clear, and hard to justify.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But dodging costs is precisely what they are doing. Last year, collectively, suppliers were able to avoid paying \u00a3126 million towards these schemes, leaving other companies to pick up the tab and reducing the environmental benefit of their own \u2018green\u2019 tariffs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">British Gas alone avoided paying over \u00a348 million into schemes to support renewables in Britain.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/gebusinessstaticprod01.blob.core.windows.net\/images\/blog-posts\/_1122xAUTO_crop_center-center_70_none\/ge20-098-1920-avoided-costs-by-supplier.jpg\" alt=\"Graph showing the costs avoided by energy suppliers relating to renewable power.\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The first point here is about transparency. Customers should know what they are buying when they join a green tariff. And many people would reasonably expect their bill to go towards environmental schemes in Britain \u2013 such as supporting a new wind or solar farm. The regulator, Ofgem, has said that \u201cwe expect suppliers to be transparent about what constitutes a \u2018green tariff\u2019\u201d. This isn\u2019t clear to anyone.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The second issue is to stop suppliers avoiding paying their fair share towards new clean power. While this practice remains within the rules, it\u2019s a classic case of passing the buck; and worse still it weakens the value of their own green tariffs. &nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Please email&nbsp;<a href=\"mailto:greenwash@goodenergy.co.uk\">greenwash@goodenergy.co.uk<\/a>&nbsp;if you think you\u2019ve been mis-sold a green tariff. Tell us your story.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Read our research note on this issue&nbsp;<a href=\"https:\/\/www.goodenergy.co.uk\/media\/18730\/renewable-certificates-in-europe-research-note.pdf\">here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>We think most people would expect their supplier to use their energy bills to buy renewable energy in the UK.&hellip;<\/p>\n","protected":false},"author":12,"featured_media":148,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[13,14,12,11],"class_list":["post-147","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy","category-generation","category-large-business","category-small-business"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How big suppliers dodge renewable energy costs | Good Energy for Business<\/title>\n<meta name=\"description\" content=\"Some of the UK&#039;s biggest energy suppliers are avoiding obligations to support the growth of renewable energy. 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