Could a green energy plan save you money?
A number of new ‘green’ tariffs mean you might be able to spend less while doing your bit for the environment
Research from uSwitch has found that the average cost of the six cheapest ‘green’ tariffs is £1,094, 8.4% cheaper than the average tariff across the standard plans on offer by the big six.
In stark contrast, just one year ago the average big six standard plan, cost 2.6% less than the cheapest green tariffs.
This means that homes on a standard contract, could save money, whilst moving to a greener plan. It is, however, worth noting that green plans are not the cheapest on the market. For a run down of the cheapest deals available click here.
Why is green energy cheaper?
Over the past year, the big six energy suppliers have each announced that they would not be offering green energy plans. This is partly down to Ofgem imposing a maximum of four energy tariffs per supplier, in a bid to create a simpler market. As a result, there is now just one plan approved under the Green Energy Certification Scheme.
On the plus side, a number of small suppliers have stepped into this void and are offering relatively cheap green plans.
The cheapest green tariffs available:
|Supplier – plan||Percentage renewable energy||Fixed/variable||Monthly direct debit|
|OVO Energy – Cheaper Energy Fixed||15%||Fixed for 12 months||£1,028.26|
|OVO Energy – Greener Energy Fixed (Online)||100%||Fixed for 12 months||£1,086.36|
|OVO Energy – Better Energy Fixed||15%||Fixed for 12 months||£1,088.26|
|Woodland Trust Energy – Better Energy||15%||Fixed for 12 months||£1,088.26|
|OVO Energy – Cheaper Energy (Fixed to June 2016)||15%||Fixed until 30th June 2016||£1,124.04|
|OVO Energy – Greener Energy Fixed||100%||Fixed for 12 months||£1,146.36|
What is a green plan?
A green energy plan is a tariff which sources some or all of its energy from renewable sources. The percentage of renewable energy used varies depending on the plan.
However, last week, the fall in number of plans approved under the Green Energy Certification Scheme led Ofgem to call for a review into what constitutes a green plan. The energy regulator called for more transparency from suppliers with regards to how a plan is classified as ‘green’.
Speaking on the topic, Director of Consumer Policy at uSwitch, Ann Robinson said: “It’s important that consumers know what they’re buying. Some tariffs are advertised as being green when in fact only a fraction of the energy is renewable.
“These tariffs are often more expensive than the cheapest on the market, so it’s vital that consumers have the right information before making a decision.”