We should all help to protect the environment by using renewable energy in our home and business. In 1998, the British Government introduced competition into the electricity supply chain, by de-regulating the industry which gave us the choice to buy our electricity from a variety of sources.

What is Green Energy?

Green energy means energy produced from renewable or sustainable sources which do not cause impacts upon the environment. The cleanest energy sources are those which utilise the natural energy flows of the Earth. These are usually known as renewable energy sources, because they will never run out.

These renewable sources include wind farms, hydroelectric dams, landfill gas, biomass schemes (chicken litter, farm biogas, energy crops etc) along with small-scale solar, wind and hydro systems, etc. These sources do not produce carbon dioxide when they are used to generate electricity and will therefore help in reducing climate change.

Although many forms of green energy generation are being developed, in the UK today we basically generate green energy for domestic use from two mains sources, wind power and hydro-power.

If you want to help protect the environment, one of the best things you can do is to change the electricity tariff of your home or business to a ‘Green Tariff’. This means that your electricity supplier will buy enough electricity from renewable sources to offset any electricity consumed in your home/business.

Since April 2002 all electricity suppliers must obtain at least 3% from renewable resources (which will rise to 10% by 2010). The more people who request electricity generated in this way the more pressure is put on suppliers to buy from and/or fund renewable sources.

If you were to switch to a renewable energy tariff, the electricity you receive will arrive through the same cables and wires, but for every unit of electricity you use your supplier will plough an equal amount of green energy into the National Grid.

What are green tariffs?

Many energy companies can now offer special green tariffs. There are two main types of green tariff:

1. Renewable Tariff - This one ensures that for every unit of electricity you buy, the company buys a unit of energy from a renewable source;

2. Eco-Funds Tariff – This tariff charges you a little more for your electricity and gives the extra amount to a green energy fund.

Some green electricity suppliers are much ‘greener’ than others i.e. voluntarily obtain a greater proportion of their electricity from a renewable source and are more careful where they buy their non-green electricity. However, any ‘green’ tariff is better than a ‘non-green’ one. Prices will also vary, so it is worthwhile shopping around. Some companies’ green tariffs cost the same as non-green but, in general, most green tariffs are slightly more expensive but even then this is unlikely to add up to more than £1 per week extra to your electricity bills. If you are a business and use larger amounts of electricity, a ‘green tariff’ also saves you money in that you would be exempt from the Climate Change Levy.

If you generate electricity from renewable sources, you can sell electricity to the national grid via one of the electricity providers. In addition, you can also sell the Renewable Obligation Certificates (ROCs), which certify that your electricity comes from renewable sources. As with buying electricity, the price you receive will vary between providers.

Locally, Merseytravel negotiated a new contract for energy supply, so that since April 2002 the energy supply for Paradise Street and Queen’s Square bus stations and their
headquarters at Hatton Garden come directly from a “green source”.

The MREI cannot recommend a specific green energy scheme for Merseyside residents or businesses, but would suggest you contact your energy company and ask for details of their green tariff.

If they don’t offer one check out www.uswitch.com supported by Friends of the Earth, where you can compare your current bill with other supplier options, including green tariffs and find guidance on switching.