Why Green Tariffs are misleading, and why it’s time for change
At Utilita, we believe in transparency and fairness for energy consumers. That’s why we’re calling for a rethink of the green tariffs, which are predominantly backed by Renewable Energy Guarantees of Origin (REGO) and Power Purchase Agreement (PPA) system – a mechanism that is being exploited to mislead customers into thinking they are supporting green energy when – in many cases – they are not.
Greenwashing, enabled by REGOs and PPAs, undermines trust and confuses consumers about their environmental impact. Here’s why we think it’s time for change and why we need your voice to make it happen.
The truth about your “Green” Tariff
Unless your electricity comes direct from a renewable source such as solar panels, your energy comes from the National Grid. Suppliers have no control over how the energy available from the National Grid is generated – this is decided by government policy. Right now, around half of the electricity we use is still generated by fossil fuels.
What that means is there’s really no such thing as a ‘green’ energy tariff or ‘100% renewable energy tariff. When energy suppliers claim to provide “100% renewable” electricity, they’re often relying on REGOs to make that claim. A REGO certificate is issued for every unit of renewable electricity generated, allowing suppliers to buy these certificates and label their energy as green.
The problem? Most REGOs come from subsidised renewable electricity – electricity you’re already paying for through government levies in your energy bill. These subsidies mean about 50% of the electricity supplied by the National Grid is already net zero by default. Yet suppliers use REGOs to claim their tariffs are fully green, misleading customers and creating a false sense of impact. This is known as greenwashing – making claims that their product or service is greener than it really is.
Slightly better than bog standard REGOs, but still enabling greenwashing are Power Purchase Agreements (PPAs) and ‘time-matched REGO programmes. Why? Neither support any new renewable energy generation, meaning they lack any ‘additionality’ – see below:
PPAs
Businesses buy PPAs which are long-term energy purchasing agreements between a business and an energy supplier. This contract locks the business in to purchasing electricity from one electricity supplier and allows the business to make renewable energy claims. This provides no additional renewable energy to the National Grid.
Time-matched REGO programmes
Time-matched certificate programmes are an improvement on REGOs, but without being linked to a location, they provide limited additionality as they cannot be traced back to a renewable source. Utilita’s Live Carbon Dashboard presents time and location, as this enables consumers to understand the carbon content of the energy they are consuming every half hour of every day.
The cost of greenwashing
Greenwashing isn’t just immoral – it’s having a negative impact on our environment:
- Misleading Consumers
Many households on so-called “100% renewable tariffs” believe they’re making a significant difference. What’s even worse is that our research shows that 30% of these consumers feel less guilty about wasting energy because they don’t think it’s having an impact on the environment. - Unrealistic Claims
Suppliers buying enough REGOs to match their customers’ energy use aren’t actually increasing the amount of renewable electricity on the grid – they’re simply buying certificates for power that’s already subsidised. This stalls the UK’s progress towards net zero and prevents genuine decarbonisation from happening. - Stalling Progress
Greenwashing allows companies to appear to be environmentally responsible without doing the real work of supporting additional renewable energy development or reducing their reliance on fossil fuels.
A better way forward
At Utilita, we believe in calling things what they are. That’s why we’re advocating for:
- Renaming Green Tariffs
Only tariffs which are time and location matched that deliver renewable electricity directly to customers when they’re using it should be labelled as 100% renewable. - Stricter Regulation
Suppliers must be held accountable for their net-zero claims, ensuring they are reporting emissions effectively and transparently. - Ending REGO Reliance for Subsidised Power
Suppliers should not need to pay for REGOs tied to already subsidised renewable electricity. Instead, the industry should focus on investing in unsubsidised renewables and ensuring consumers see the benefits of their contributions to subsidies.
Join us in calling for change
The current green tariff system enables greenwashing and fails to encourage real progress toward a sustainable energy future. It’s time to demand transparency, fairness, and integrity from energy suppliers.
At Utilita, we’re proud to lead by example. We were the first UK energy supplier to reject REGOs and we are the first energy supplier to launch a fully transparent live carbon reporting dashboard to show our carbon emissions. This also allows our customers to see the environmental impact the energy we supply to them is having on the planet.
If you are a consumer who wants to see better transparency across the market, please do join us in putting pressure on the energy regulator to reform the green tariff system and create a more honest and impactful approach to renewable energy.
Together, we can ensure that every household’s contribution to a greener planet is recognised—and that the transition to net zero energy is both fair and transparent.
Click here to generate an informative letter to your local MP: utilita.co.uk/REGO-reform