Green Electricity – FAQ’s
Green Electricity - Impact on the Climate Change Levy
Use Green Electricity to reduce the impact of the Climate Change Levy. Since the overall strategic objective of the Levy is to reduce carbon emissions by taxing the end users that create them, the Levy should not apply to sources of energy which do not produce emissions.
Such sources of electricity are EXEMPT from the Levy. This will mean a SAVING of between 7% and 15% for most businesses.
Back to Top
Isn’t green electricity more expensive?
There has never been a better time to consider Green Energy due to the potential savings you can make on the Climate Change Levy. This form of power is likely to be cheaper than tariff prices and in many circumstances cheaper than competitively purchased alternatives. We recommend that Green purchases are included in the purchasing strategy for many organisations.
Back to Top
Where can I get green electricity?
Just like "brown" electricity, you contract with a supplier. Many suppliers of brown electricity also supply green but there are also a number of specialist suppliers.
In selecting a supplier, you should apply the same criteria as for others. Particularly with specialist, usually smaller, suppliers, issues of Technical Capability and Financial Standing will need careful consideration.
Back to Top
Future Energy accredits some suppliers
Future Energy vets and audits energy offerings so that consumers can be confident about their supplier's claims about renewable energy and you may wish your supplier to carry such accreditation.
Back to Top
Where does green electricity come from?
Sources can most easily be divided as follows:
Deep Green technology relies on truly renewable resources and comprises:
- Wind
- Hydro (excluding above 10 MW, generation)
- Solar
- Wave
Pale Green technologies rely on combustion but they are at least carbon neutral and in many cases significantly reduce emissions. Technologies include
- Landfill
- Waste
- Sewage
- Biomass
These sources provide a relatively cheap and consistent source of power and as such make a valuable contribution to the environment.
In most cases, consumers will have no specific interest in where their power comes from but if this is important to you, you should consider this when sourcing a supply of Green Electricity.
Back to Top
What sort of products do suppliers offer?
Two sorts of offering are made:
Supply
Under this type of arrangement, your supplier will directly contract with a generator of green electricity. Although it is impossible for them to guarantee that the electricity you receive is Green they will ensure that every unit you use is balanced by one supplied by a Green generator.
Fund
With this type of scheme, some of what you pay is contributed to a fund which supports Green technologies.
Back to Top
What Type of Organisations can Benefit?
Historically, Green electricity has only really appealed to two classes of customers:
The first can most easily be categorised as "Virtuous/Ethical" companies. These are few in number and comprise charities and a small number of commercial companies with strong social agendas.
The second are Public Authorities who are obliged to purchase some of their energy requirements from renewable sources as part of the Government's approach to meeting Kyoto targets.
With the savings on Climate Change Levy, others should now consider Green electricity:
In particular, consumers should consider Green sources for "Flagship" sites. The benefits to be gained through the environmental badging should be considered alongside the saving in Climate Change Levy.
Companies with ISO 14001 accreditation may also want to consider Green electricity as part of their overall commitment to reduce their environmental impact.
Back to Top
What paperwork do I have to complete to get the CCL reduction?
Unlike energy intensive users, who must complete extensive paperwork to gain reductions in CCL, customers who buy Green electricity do not have to complete any paperwork to obtain the CCL exemption. Your supplier does all the work.
Back to Top
What about Green Gas or Water?
At the moment, Green offerings only exist in Electricity but it is possible that Green gas or water might be offered in the future.
Back to Top
How can Inenco Help?
Inenco can help you bring Green Electricity into your overall purchasing strategy. We can help you find the right supplier, source of energy and product for you. We can also help you to negotiate for the right price for your green electricity.
Back to Top
|
