Energy Guides

Green energy suppliers

Update: Tuesday 7 February, 2012

By Martin Fagan

How do you know which “green” energy supplier is the greenest? This guide looks at the credentials of the UK’s main green energy suppliers.

People throughout Britain are increasingly aware of their impact on the environment and are becoming more concerned about how to reduce their carbon footprint.

As a result, a number of green energy suppliers have appeared on the market, targeting environmentally-aware consumers. But how do you know which offers the greenest energy?

In this guide we assess the green claims made by the four main UK companies who market themselves as being “green”, and find out which is making the biggest difference to the environment.

• Green Energy
• Good Energy
• Ecotricity
• Ovo Energy
• Which green energy supplier is best?

Green Energy

Green Energy currently supplies only electricity, but its electricity is 100% green. Some of this energy is “deep green” and some is “pale green”. It gives customers a choice of two tariffs, as follows:

• Deep Green tariff - 100% of the electricity you use is matched with a supply from renewable power – for example, energy from hydro, solar or wind.
• Pale Green tariff - Instead of renewable sources, your electricity is matched with “green” energy from combined heat and power (CHP) generators. CHP generators produce cleaner, more environmentally friendly energy than conventional power stations as they capture and use the heat released when creating electricity.

The Deep Green tariff is slightly more expensive - Green Energy says it works out at 50p a week extra on the bill - but is more environmentally friendly than the Pale Green tariff, which should cost about the same as a regional electricity company. Customers can then decide what price they’re prepared to pay for being green.

In 2010, Green Energy introduced Green Gas which it currently sources from a “green gasmill” in Holland. Green gas is produced mainly from food waste in a process known as Anaerobic Digestion and after being cleaned up (chiefly removing the CO2 content) is pumped into the grid. Green Energy is in the early stages of building its own green gasmill in the UK.

Good Energy

Good Energy only offers one tariff, which consists of 100% renewable green electricity. It sources this electricity from renewable generators, including wind, hydro and solar, from across the country.

It has over 12,000 independent renewable electricity generators on its books, plus it has its own wind farm down in Delabole, Cornwall.

It also supplies gas, and has more than 25,000 generators in use.

More information on Good Energy

Ecotricity

Ecotricity is investing vast amounts in building new sources of green energy - mainly in the form of wind turbines.

Ecotricity says that because it is run on a “not-for-dividend” model and has no shareholders or investors to keep happy, it’s free to dedicate all profits to its mission of changing the way electricity is made.

Ecotricity offers two tariffs, as follows:

• New Energy - The electricity for this tariff is made up of over 50% Ecotricity’s own-generated green electricity. This percentage has grown significantly over the past few years, from 20% in 2005-2006, and is growing further as the company builds more wind turbines. This is topped up with “brown” energy bought on the wholesale market. Ecotricity’s price promise means the New Energy tariff won’t cost you any more than the standard tariff of your regional supplier.
• New Energy Plus - This tariff is for consumers who want 100% renewable energy. It has the same percentage of Ecotricity’s own-generated green electricity, but is topped up with green energy bought on the wholesale market. It’s around £20 more expensive per year than the New Energy tariff.

Whichever tariff you choose, the money you spend on energy bills will be used by Ecotricity to build more windmills, which the company calls its “Bills into Mills” programme.

More information on Ecotricity

Ovo Energy

The newest entrant into the green energy marketplace is Ovo Energy, founded in 2009 and based in Gloucestershire. As well as supplying green energy, Ovo pledges to treat its customers fairly by offering transparent tariffs and promising that all customers - new and existing - will get the best available deals. Ovo offers just two tariffs: New Energy Plan and Green Energy Plan.

• New Energy Plan - a tariff with 15% renewable electricity (the standard UK average is 7.9%)
• Green Energy Plan - a tariff where 100% of the electricity supplied is from renewable sources

Regardless of the tariff you choose, Ovo offers a price fix guarantee that the price per unit will not change during a 12-month fixed contract, and paperless email billing will save you £20 a year. Direct debit payments are reviewed regularly to ensure accurate billing but if your account is in credit, Ovo Energy will pay you 3% interest on the surplus balance.

Which green energy supplier is best?

All four of these green energy suppliers allow customers to receive electricity from 100% renewable sources. Opting for any of the green tariffs outlined above will help you reduce your carbon footprint and do your bit for the environment.

There are other factors to weigh up - not least price - and we would strongly recommend you do an accurate energy comparison to find the most suitable green deal for you.