Energy Saving Trust channels
Top shortcut links
Main navigation starts here
You are here:
Where does our electricity come from?
The majority of the UK's electricity comes from burning fossil fuels (e.g. coal, oil and gas) which is a major contributor to climate change. Carbon-free sources, including nuclear and renewables, account for around one quarter of total electricity production. Renewable, or 'green' electricity, accounts for just 5.5% at present, but is set to grow over the coming years through policies such as the Renewables Obligation (RO). This requires electricity suppliers to source an increasing proportion of their electricity from renewable sources of power such as wind energy. The Government wants at least 30% of our electricity to come from renewable sources by 2020.
Most energy suppliers offer 'green' electricity tariffs. These seek to support renewable energy. The two main types of offering are green supply tariffs and green funds.
A green supply tariff means that some or all of the electricity you buy is 'matched' by purchases of renewable energy that your energy supplier makes on your behalf. These could come from a variety of renewable energy sources such as a wind farm or hydroelectric power station. Your supplier should let you know what sources are included in the mix, and also what proportion of your supply is renewable. We advise people to look carefully at whether the renewable energy they are purchasing is “additional” i.e. it is above and beyond what suppliers are required to produce under the RO. Many green tariffs state that your supply is renewable but they simply assign some of the renewable energy they are already required to supply to you, whilst reducing the amount of renewable energy they provide to other customers. This does not therefore, increase the amount of renewables in the overall energy mix.
A green fund usually involves paying a premium to contribute to a fund that will be used to support new renewable energy developments. The cost of generating electricity from renewable energy sources can be slightly higher. Under this option, the existing electricity supply continues as normal, but your involvement could help to alter the mix of energy sources in future toward renewable sources (depending on the type of tariff).
Green Energy Supply Certification Scheme
In February 2010, the Green Energy Supply Certification Scheme was launched. This scheme was set up to reduce customer confusion and mis-selling in this marketplace. These tariffs have been independently checked, and meet the energy regulator Ofgem’s Green Energy Supply Guidelines. However, whilst these are required to demonstrate real carbon savings, it is important to note that they do not ensure that the electricity you buy is 100% renewable or that it creates additional renewable energy generation.
In order to comply with the scheme, suppliers must do the following:
1. “Match” all the energy you use with Renewable Energy Guarantees of Origin (REGOs). REGOs are certificates attached to electricity produced from renewable sources. These can be bought from any EU member state. In particular it is important to be aware that the claim of “matching” the energy you buy with renewable energy does not necessarily mean that you are increasing the amount of renewable energy produced in the UK or abroad. The supplier only has to show that they have purchased enough renewable energy to supply it to all their customers who have signed up to their Green Tariff. Suppliers would are obliged to supply a certain amount of renewable energy through the RO regardless of whether you sign up to a green tariff.
2. In addition, the supplier must do at least one of the following:
a. Carbon offsetting so long as it is certified under either DECC’s Quality Assurance Scheme for Carbon Offsetting (QAS) or the Gold Standard for regulated credits. This could include for example the provision of fuel efficient stoves abroad. If offsetting is done through the QAS, 1.8 tonnes of CO2 must be offset. If offsetting is done through the Gold Standard 1 tonne of CO2 must be offset.
b. “Additional activities”. These could include energy efficiency measures such as cavity wall and loft insulation, and advice (as long as these savings are measurable and not being claimed for under other schemes which place obligations on electricity suppliers). At least 50kg of CO2 per customer per year must be saved through this method.
c. Green Fund. This could be used to invest in measures such as renewables on community buildings. At least 50kg of CO2 per customer per year must be saved through this method.
d. Other activities accepted by the assessment panel.
This is a voluntary scheme and not all suppliers or tariffs are required to use it. However, all suppliers who have joined the scheme can no longer market other, non-certified tariffs, as “Green”. Click to see a list of tariffs currently certified under the scheme.
We advise all customers considering buying a green tariff to look carefully at what suppliers are offering to ensure that it meets their personal definition of “green”. Signing up to one may not actually reduce your carbon footprint or UK carbon emissions. If you are interested in reducing your carbon footprint, the first and most important thing to do is to reduce your energy consumption – you will find lots of information on how to do this on our website.
There are many green offerings on the market. Some questions you might like to consider before choosing a green offering are:
The Energy Saving Trust does not recommend specific suppliers of green tariffs. However, you may find the following websites useful as a guide:
Average rating - 3 OK
For regular email updates please submit your email address below.
Call 0800 512 012 for free, independent and local energy saving advice
Click here to request a call back from your local advice centre.
Latest News