Types of electricity tariffs

Green tariffs
These days more and more people are thinking about going green when they buy their energy. But with a number of different “green tariffs” currently on the market it can be difficult choosing the one that’s right for you.
And what do energy suppliers mean by “green” anyway? For some suppliers it might mean that they supply you with renewable electricity, others invest in building wind turbines, or in projects to offset household carbon emissions. Surprisingly it could also mean that part – or even all – of your electricity may actually come from non-renewable sources.
That’s why 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) rather it categorises and gives background information about each tariff to help you make a choice.
If you want to switch to ‘green’ product there are a number of different tariffs currently offered by suppliers, which energywatch has categorised as follows:
Current Green Tariffs Offered by Suppliers |
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Supplier and Tariff Name |
Green Source |
Green Source |
Green Fund (New Renewables) |
Green Fund (Other Environmental) |
Carbon Offset |
British Gas |
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British Gas |
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British Gas |
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EBICo |
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Ecotricity |
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Ecotricity |
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EDF Energy |
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EDF Energy |
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Good Energy |
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Green Energy UK |
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Green Energy UK |
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Npower |
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Npower |
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E.ON Energy |
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Scottish and Southern Energy better plan |
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Scottish and Southern Energy RSPB Energy |
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ScottishPower |
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ScottishPower |
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Utilita |
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- For every unit of electricity you use, a supplier guarantees to buy a percentage of electricity (from 10% to 100%) from a renewable generator which uses wind, small hydro-electric, biomass, tidal and wave power, geothermal and/or solar.
- These tariffs should be backed by Renewable Electricity Guarantee of Origin (REGOs) certificates.
- This type of electricity generation qualifies for Renewables Obligation Certificates (ROCs) and Levy Exemption Certificates (LECs).
- Depending on the supplier, you may pay more than under a standard tariff.
- For every unit of electricity you use, a supplier guarantees to buy electricity sourced from hydro-electric generation plants (larger than 20 megawatts and built before 1 April 2002).
- These tariffs should be backed by Renewable Electricity Guarantee of Origin (REGOs).
- While the electricity is from a renewable source, this type of generation does not qualify for Renewables Obligation Certificates (ROCs) or Levy Exemption Certificates (LECs).
- These tariffs are designed to support the construction of new renewable generation sources such as wind farms, solar power, etc.
- The energy you use may be from non-renewable sources.
- Depending on the supplier, you may pay more than under a standard tariff.
- Some suppliers offer these tariffs to their dual fuel customers.
Green fund (other environmental)
- These tariffs are designed to support environmental causes or new research and development projects.
- The energy you use may be from non-renewable sources.
- Depending on the supplier, you may pay more than under a standard tariff.
- Some suppliers offer these tariffs to their dual fuel customers.
- This tariff is intended to help reduce or ‘offset’ the impact of your home’s annual carbon dioxide (CO2) emissions.
- The supplier makes a donation to a carbon reduction project in the UK or abroad.
- The energy you use may be from non-renewable sources.
- Depending on the supplier, you may pay more than under a standard tariff.
- Some suppliers offer these tariffs to their dual fuel customers.
Please note: there are no independent accreditation or audit schemes for green energy tariffs to give consumers confidence that suppliers’ claims are true. In light of this, energywatch asked suppliers to give background details about their tariffs and how they provide evidence of ‘greenness’ as well as details of any audit mechanisms used. |