Posted on: 17/10/2017
We are now in our second year of issuing Energy Labels to our renewable electricity customers. Mike Shirley, Head of Marketing, discusses their importance in providing our customers transparency and clarity.
Buying renewable electricity for your business is a simple concept but there is a level of complexity involved in proving the origins of that electricity which inhibits take-up by some.
Renewable Energy Guarantee of Origin (REGO) certificates were created to provide clarity for renewable electricity generated in Great Britain, but the sheer volume created and used each year provides a logistical problem.
Suppliers use REGO certificates to ensure that every renewable megawatt hour (MWh) of electricity supplied to a customer is from a renewable source, but there is still a risk of double-counting or under-allocating certificates which it is very difficult for customers to resolve.
To avoid this risk and ensure that our business customers know what they are purchasing, we introduced annual Energy Labels last year. They are modelled on the widely available energy label concept and are produced for every renewable customer.
They demonstrate that every MWh of renewable electricity you purchase from us is backed with an origin certificate that we own. We track and allocate an origin certificate to every MWh of supply within our Emission Factor Model.
The end-to-end process is independently certified by the Carbon Trust to be compliant with the Greenhouse Gas Protocol Scope 2 Guidance and provides customers with an emission factor to be used under the ‘market-based’ reporting method.
We believe this approach should be easy to adopt and we would like to call on other suppliers to use the same approach to give customers true comparability.
Developing trend of corporate renewables
We often hear about leading organisations committing to procure renewable electricity. One indicator of corporate uptake of renewables is the RE100 initiative, which recently announced it has 111 companies signed up.
This year we issued over 500 energy labels to our customers, let’s hope the industry provides many more next year!
Later this month we are launching a report on the adoption of renewable electricity in the supply chain that identifies clear transparent reporting as an important factor to drive growth.
Don’t forget to use #EnergyLabels to show us where you put your Energy Label and help show how useful a tool it is!!