Why aren't green energy deals cheaper, given that the energy price hike is down to gas prices?

sirob75

Genuinely, I have no idea why those of us who invest in green energy aren't getting a better deal. That should be the incentive for people to move to green - you're no longer beholden to gas prices. I haven't seen any discussion about this on TV or online for some reason. Answers on a postcard.

Chris_English

sirob75 said:

Genuinely, I have no idea why those of us who invest in green energy aren't getting a better deal. That should be the incentive for people to move to green - you're no longer beholden to gas prices. I haven't seen any discussion about this on TV or online for some reason. Answers on a postcard.

For the same reason that no-one cuts off your electricity when the wind isn’t blowing.

[Deleted User]

As the three energy suppliers who are truly green are not subject to the Ofgem cap, then green energy might not be as cheap as people think. All the other suppliers are to some extent guilty of ‘greenwashing’ their supplies.

From the Good Energy website:

At the government’s request, Ofgem has implemented a price cap for energy. The cap is designed to protect customers, particularly those who are on more expensive standard variable tariffs.

It is aimed primarily at the customers of the larger energy suppliers who have often never switched, or who sign up on a fixed tariff, then at the end of that deal see their prices skyrocket. At Good Energy, we do things differently — the vast majority of our customers are on the same variable tariff.

In the process of developing its implementation, the government and Ofgem consulted with the energy industry on the impact the cap might have on renewable suppliers.

That consultation concluded that green suppliers like Good Energy are different. We go above and beyond buying and selling renewable energy, creating a market for the renewable generators, and our customers actively choose to buy energy from us.

As such, Ofgem laid out a route to apply for exemption (or a ‘derogation’) from the price cap for renewable suppliers. We applied for and have been granted a temporary derogation from the cap, as confirmed by Ofgem on its website here.