Out of the blue

Green energy - costs a bit more but saves your conscience

Some of the 20 or so companies which supply us with electricity now offer what they call ‘green’ tariffs. These encourage, in one way or another, the use of environmentally friendly ways of generating electricity.

Most power in the UK is generated by burning coal or gas, using the heat to boil water, and using the steam to drive turbines which generate electricity. It’s a method that has not changed for a hundred years. And it is dirty, pumping carbon dioxide and other pollutants into the atmosphere.

Of course, there are cleaner ways of generating electricity. The best known ‘green’ alternatives are wind, tides, and sunlight itself. But there is also ‘bio-fuel’ which includes burning the gas produced in sewage or landfill sites, burning household waste – controversial to some – and of course using damned up rivers to drive hydroelectric plants.

But all these alternatives only account for less than 5% of the electricity we use. The Government wants to boost this amount as part of a long-term commitment to reduce the greenhouse gases emitted by the UK. Most ‘green’ power sources do not pollute – though you would get an argument about burning household waste from some environmentalists! By choosing a ‘green’ tariff, you can encourage the power companies to buy more electricity from these so-called ‘renewable’ sources. In other words, they do not use up parts of the Earth we can never replace.

Of course, all the electricity you get will still come through the national grid – and it cannot deliver power from ‘renewable’ resources direct to your address. But some companies do the next best thing. They measure the power you use during the year and then guarantee to buy that much extra electricity from green generators. So you do ensure the amount of electricity you use is generated in an environmentally friendly way. This method of producing a ‘green’ tariff is called ‘match buying’ – they buy enough green energy to match what you use. But check the schemes carefully. Some do include burning household waste and hydroelectric power. Not everyone will like that.

Some schemes support the environment less directly. Instead of match buying, they use the extra money you pay through your green tariff to support renewable energy projects or research. That is not so direct, but may be better in the long-term.

Unfortunately, none of this comes cheap. Green tariffs are generally more expensive than other ways of buying electricity. A survey by Consumer’s Association found they were around £35 a year more than the cheapest tariffs available locally, and often £10 to £20 cheaper than the standard tariffs of the companies which offer them. But if you are currently paying the full rate for your power from your local supplier, you could switch to a green tariff and still save some money. And some green tariffs do not come at a premium.

The table lists the eight schemes which offer match buying (or a degree of it) in the UK. Only three of these are available nationally. It also lists the four tariffs – two national, two local – which support a green fund.

Autumn 2000

e-mail Paul Lewis on paul@paullewis.co.uk