Archive for the ‘Eco-fund tariffs’ Category

Green tariffs – An introduction

Tuesday, May 19th, 2009

Buying renewable electricity from an energy supplier

The average UK household now produces more than five tons of carbon dioxide a year just from gas and electricity. Since 2002 however, electricity companies have had to buy a proportion of their electricity from green power sources. As a result most now offer a green tariff, designed to provide as much electricity as possible from renewable or sustainable sources.

Such sources include Wind power and Solar power and Biomass energy, which avoid the harmful emissions associated with burning fossil fuels, or the risks associated with nuclear power. The electricity supply continues to come from the National Grid, using the same cables and meters, so changing to a green tariff is hasslefree.

There are two types of green tariff currently available:

Renewable tariffs

On these tariffs, every unit of electricity bought by the supply company on behalf of the customer is generated by a renewable energy source.

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Eco-fund tariffs

These tariffs involve the customer paying an additional premium which is invested in funds used to finance new renewable energy projects, often based in developing communities.