100% renewable ??

tedwood2

My energy supplier boasts that they only supply 100% renewable electricity as standard.  Therefore, surely the price of oil and gas does not affect their electricity generation costs.  So, why does any supplier boasting 100% renewable electricity generation need to put up their prices so much??

Evan3020

Because its sold in a market, why would anyone buy the expensive energy when they could buy the cheap stuff.
Its how markets work.

El_Torro

Because your energy supplier doesn’t supply 100% renewable electricity. The National Grid doesn’t distinguish where the energy comes from. So some days you might be receiving 100% renewable and other days 0%. I guess it depends on your geographical location too.

Being on a green tariff (or using a green supplier) just encourages the use of renewable energy, it doesn’t change what you actually receive.

So yeah, a good example of greenwashing.

Dogbyte009

The 100% renewable claim is a con. Suppliers buy certificates from companies that generate renewable energy, but the power they supply to you comes from the National Grid so it could be generated from a number of sources.

It's all explained here: https://www.renewableenergyhub.co.uk/blog/does-your-energy-provider-genuinely-supply-100-green-electricity/

tedwood2

Thanks to those who have replied.  Having read up I think that I agree, it is an advertising con.  Perhaps of-gen should look into this too.  Maybe next time Martin meets with minister, suppliers and of-gen he could bring this up as well.

Thanks again.

Evan3020

Technically oil and gas are renewable but on a much larger timescale.

doodling

Hi,

The best analogy I have for renewable electricity supplied to domestic customers is vegetarian stew, made with beef like normal stew but with the lumps of meat removed just before serving - technically there is no meat in it but it would be a very different dish if the beef wasn't involved.

facade

The simple answer is because you are paying what the energy is worth on the open market, not what it costs to produce.

Your supplier doesn't make it, they buy it and resell it to you, therefore they have to pay market prices.

QrizB

tedwood2 said:

Perhaps of-gen should look into this too.

In theory, the governemnt is already doing so.

https://www.gov.uk/government/news/government-to-tighten-rules-to-stop-greenwashing-of-electricity-tariffs

In practice, the ministers seem to be too busy having cheese-and-wine parties and saying rude things about one another on Twitter.

wrf12345

I keep saying this, national grid should be selling directly to customers, save 20-30 percent of the cost... the energy providers are aware of their possible demise and getting everyone to drop their pants and bend over before the end comes.

Evan3020

Where would the competition element be in that?