More power to green electricity

More power to green electricity

Growing numbers of households, concerned about global warming, are considering switching to "green" electricity tariffs offered by a number of energy companies. But will you pay extra for a clear conscience?

There are now a variety of providers which offer renewable energy generated from sources such as wind and water. They range from smaller specialist companies, such as Good Energy and Ecotricity, to biggies such as npower and ScottishPower, which both offer "green tariffs".

However, many people won't be aware that it is possible for consumers to switch to a renewable provider and actually save money on their annual energy bills.

Research carried out for us by internet comparison service SimplySwitch.com found that a typical household in Manchester who are with Powergen could save around £92 a year by switching to ScottishPower's Green Energy H20 tariff, where the company matches the amount of electricity a customer uses with a supply of clean hydro-power into the grid.

Meanwhile, a household in Edinburgh that has never changed supplier could switch to a green tariff from npower, saving more than £160 a year as well as helping the environment.

"Research among our customers revealed that many like the idea of renewable energy, but few felt they had sufficient knowledge to make the switch," says Karen Darby at SimplySwitch.com, which has a "green team" to help householders find the right green energy tariff.

But.....continued below

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... there's always a "but". Some of those who have signed up for green electricity have been shocked to discover they are not immune from the sharp price hikes that have seen millions of conventional electricity customers landed with much higher bills.

During the last few days, Good Energy and Ecotricity have angered some of their customers by announcing significantly higher prices. Customers are bewildered - why should the price of power from wind turbines rise just because the oil price is galloping ahead?

The companies' explanations have left some distinctly unimpressed.

One Good Energy customer emailed us to say that it seems unfair that people like him are being penalised by increases in fossil fuels, when the company states that it supplies "100% renewable energy sourced from the natural energy of wind, sun or running water".

Good Energy has hiked its prices by an average of 17%, while Ecotricity is upping its prices for many householders by 8%-12% from next Saturday.

A spokeswoman for Good Energy, which has more than 16,000 customers, says it is a supply company and it has to buy in electricity. Much of this is bought at green energy auctions.

"As a result, it is treated as a commodity and follows the wholesale market price dictated by gas and oil prices," she adds.

However, Good Energy's parent company owns a wind farm in Cornwall which supplies around a tenth of its customer demand and which hasn't upped its prices. The firm claims this has enabled it to keep its price increase "as low as possible".

Ecotricity, with 12,000 domestic customers, says part of the explanation for its higher bills is simple: it promises to match the price of conventional electricity from the regional supplier in an individual's area.