Good Energy is exempt from the price cap because we do much more to support growth in renewables and clean technologies than others. And because our customers have actively chosen our tariffs to contribute to that support.
Is your energy truly green? If you care about the answer to that question, it is because you want to support the fight against the climate crisis.
It is why our first few customers chose Good Energy when it was founded 20 years ago, as the UK’s first supplier to only offer 100% renewable electricity, in a system that was only 2% renewable and when choice was limited. It is also why many of those customers chose to invest in Good Energy in our first crowdfunding round in 2002.
But more recently, we have seen an explosion in energy companies claiming to have a similar offering. These companies are taking shortcuts to offer low cost ‘green’ tariffs which mislead customers into thinking they are choosing to support the growth of renewables, when really they are just paying for fossil fuel power and some cheap certificates.
Today the energy regulator Ofgem has acknowledged that the way Good Energy does business is materially different. When the energy price cap was introduced at the start of this year, we were given a temporary exemption, while the regulator further examined the market and the ways that our tariffs support renewable generation.
In its guidance, Ofgem was clear that green exemption from the price cap would only be possible for tariffs that do more to support renewable generation than what is obligated. This guidance made clear that on their own, REGOs do not provide a meaningful amount of support for renewable generation, as the costs are ‘immaterial’, which is precisely our argument against this ‘green’ loophole.
Read more: Good Energy Blog