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The Guardian
03-08-2025
- Business
- The Guardian
Fewer green energy tariffs offered as British households opt for cheaper deals
The number of green energy tariffs available to British households has plummeted during the cost of living crisis as bill payers choose affordability over sustainability, according to industry data. Energy suppliers have pulled tariffs advertised as 'green' from the market since Russia's invasion of Ukraine in February 2022 triggered a global energy crisis that pushed gas and electricity bills to record highs. Green tariffs, which are typically more expensive than standard deals, made up about 85% of the UK's supply market in 2022 as climate-conscious households opted to pay a premium for deals backed by renewable energy. But industry data, commissioned by the Guardian, has revealed that energy suppliers have radically scaled back their green offerings, which now make up about a fifth of the tariffs on the market. William Mann-Belotti, an analyst at Cornwall Insight, an energy consultancy, said demand for tariffs backed by renewable energy had fallen because 'green credentials aren't a higher priority than cost … Amid a cost of living crisis, it becomes difficult to sell pure green tariffs at a premium'. Energy tariffs marketed as green typically promise to supply renewable energy rather than power from a mix of sources provided to the UK's power grids, either by matching each unit of energy sold with a renewable energy certificate bought in an open market, or through a direct deal with a renewable energy generator. The consultancy found that the number of green dual-fuel tariffs has halved in the last year alone. Last month there were 13 dual-fuel green tariffs available to consumers out of 57, compared with last summer when there were 24 green tariffs on offer out of 56 dual-fuel energy deals. All the energy deals now advertised as 'green' on the uSwitch price comparison website, including dual-fuel and separate gas and electricity tariffs, have made up just 18% of the overall total this year, data from the switching service shows. Before Russia's invasion of Ukraine, green energy deals made up 85% of all energy tariffs on offer on the price comparison site, according to uSwitch data. 'Consumer choice plays a strong role in what is offered on the market, so cost concerns might see people switching away from more expensive green tariffs. This would therefore reduce the demand for them,' Mann-Belotti said. 'Also, there are other ways for people to reduce their carbon footprint, with quite the increase in solar PV installations in recent years.' Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion However, the Uswitch data revealed some good news for climate-conscious households. Although there are fewer green tariffs on the market today, the deals available are 'greener' than they used to be. Uswitch grades each tariff marketed as green to help customers avoid greenwashed deals. In 2021, fewer than 15% of tariffs received a gold- or silver-standard rating from the switching service, but last year nine of the 10 green tariffs on its site were ranked at this level, leaving a single tariff ranked bronze. The stronger green credentials behind these tariffs reflect a shift away from using renewable energy certificates to guarantee the origin of the electricity – called 'greenwashing' by consumer groups and investigated by the government. Instead, suppliers are opting to buy clean energy directly from renewable energy projects. Others sell energy that is cheaper when there is more renewable energy across the country as an incentive to use more clean power when it is available.
The Guardian
03-08-2025
- Business
- The Guardian
Fewer green energy tariffs offered as British households opt for cheaper deals
The number of green energy tariffs available to British households has plummeted during the cost of living crisis as bill payers choose affordability over sustainability, according to industry data. Energy suppliers have pulled tariffs advertised as 'green' from the market since Russia's invasion of Ukraine in February 2022 triggered a global energy crisis that pushed gas and electricity bills to record highs. Green tariffs, which are typically more expensive than standard deals, made up about 85% of the UK's supply market in 2022 as climate-conscious households opted to pay a premium for deals backed by renewable energy. But industry data, commissioned by the Guardian, has revealed that energy suppliers have radically scaled back their green offerings, which now make up about a fifth of the tariffs on the market. William Mann-Belotti, an analyst at Cornwall Insight, an energy consultancy, said demand for tariffs backed by renewable energy had fallen because 'green credentials aren't a higher priority than cost … Amid a cost of living crisis, it becomes difficult to sell pure green tariffs at a premium'. Energy tariffs marketed as green typically promise to supply renewable energy rather than power from a mix of sources provided to the UK's power grids, either by matching each unit of energy sold with a renewable energy certificate bought in an open market, or through a direct deal with a renewable energy generator. The consultancy found that the number of green dual-fuel tariffs has halved in the last year alone. Last month there were 13 dual-fuel green tariffs available to consumers out of 57, compared with last summer when there were 24 green tariffs on offer out of 56 dual-fuel energy deals. All the energy deals now advertised as 'green' on the uSwitch price comparison website, including dual-fuel and separate gas and electricity tariffs, have made up just 18% of the overall total this year, data from the switching service shows. Before Russia's invasion of Ukraine, green energy deals made up 85% of all energy tariffs on offer on the price comparison site, according to uSwitch data. 'Consumer choice plays a strong role in what is offered on the market, so cost concerns might see people switching away from more expensive green tariffs. This would therefore reduce the demand for them,' Mann-Belotti said. 'Also, there are other ways for people to reduce their carbon footprint, with quite the increase in solar PV installations in recent years.' Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion However, the Uswitch data revealed some good news for climate-conscious households. Although there are fewer green tariffs on the market today, the deals available are 'greener' than they used to be. Uswitch grades each tariff marketed as green to help customers avoid greenwashed deals. In 2021, fewer than 15% of tariffs received a gold- or silver-standard rating from the switching service, but last year nine of the 10 green tariffs on its site were ranked at this level, leaving a single tariff ranked bronze. The stronger green credentials behind these tariffs reflect a shift away from using renewable energy certificates to guarantee the origin of the electricity – called 'greenwashing' by consumer groups and investigated by the government. Instead, suppliers are opting to buy clean energy directly from renewable energy projects. Others sell energy that is cheaper when there is more renewable energy across the country as an incentive to use more clean power when it is available.
Daily Record
02-07-2025
- Business
- Daily Record
Martin Lewis urges people to lock in energy fix to avoid overpaying on new price cap
The consumer champion warns two-thirds of homes in Scotland, England and Wales are on the 'Pants Cap'. Martin Lewis is urging people on the price cap to switch to a fixed tariff as they will probably be overpaying on energy bills this summer, despite the seven per cent drop in gas and electricity prices. Writing in the latest edition of the MoneySavingExpert ( newsletter this week, the consumer champion shared a comprehensive guide to lowering your energy bills by a further 10 per cent. He explained that some two-thirds of homes in Scotland, England and Wales are on their energy supplier's 'bog-standard default tariff, which means its price is dictated by the regulator, Ofgem's Price Cap'. Along with comparable fixed tariff deals, the financial guru answers the most common questions and concerns people have about moving off the price cap, something he has dubbed the 'Pants Cap'. Martin wrote: 'The good news is that the Price Cap has been cut by 7 per cent today, meaning for every £100 you were paying, for the same energy use you'll now roughly pay £93. 'Yet that's still 10 per ecnt higher than this time last year, and the current prediction is it won't get much cheaper. So, frankly, the Price Cap still looks like a Pants Cap - if you're on it, you're likely overpaying.' You can work your way through Martin's full step-by-step guide to lowering your energy bills and locking in the best deal on here. Energy bills have fallen for households as latest forecasts predict a further on eper cent drop in October due to easing Middle East tensions. Analyst Cornwall Insight expects the cap to fall to £1,698 a year from the current £1,720 for a typical dual fuel consumer, but stressed 'significant uncertainty' remained with two months until the final figure is announced. The price cap sets the limit on how much firms can charge customers per unit of energy, but does not limit total bills because householders still pay for the amount of energy they consume. The latest cap is £660 (28%) lower than at the height of the energy crisis at the start of 2023 when the UK Government implemented the energy price guarantee. However, prices remain elevated at £152 or 10 per cent higher than the same period last year. Cornwall Insight said its latest forecast reflected wholesale prices falling as military tensions in the Middle East had eased. But it said the cap still remained hundreds of pounds above pre-pandemic prices, even when adjusting for inflation. Furthermore, there was little indication that prices would reduce substantially over the next few years, it warned. It is predicting a further small fall in January, with prices rising slightly in April, but said market volatility, geopolitical risks and potential changes - and additions - to the non-wholesale components of bills meant forecasts remained changeable. Cornwall Insight principal consultant Craig Lowrey said: 'While any reduction in energy bills is welcome, we must not let small fluctuations in the price cap mask the bigger picture. 'Households are still paying far more for their energy than they were before the pandemic, with the current outlook showing little prospect of a meaningful drop over the next few years. 'Our reliance on international energy markets means that while we have a range of supply sources, this brings with it a vulnerability to global events and price shocks – something that was evident in June. If we want to bring real stability and affordability to the energy system, we need to continue, and speed up, our transition to homegrown, renewable power. 'This transition will not happen overnight, and there will be short-term costs along the way. However, in the long-term, building a more self-sufficient energy system is the only way to help shield consumers from international volatility and put us on a more secure and sustainable path for the future.'
The Independent
01-07-2025
- Business
- The Independent
Energy bills fall as price cap predicted to drop further in October
Energy bills have fallen for households as latest forecasts predict a further 1% drop in October due to easing Middle East tensions. Analyst Cornwall Insight expects the cap to fall to £1,698 a year from the current £1,720 for a typical dual fuel consumer, but stressed 'significant uncertainty' remained with two months until the final figure is announced. The latest forecast comes on the day Ofgem's latest price cap adjustment – a fall of 7%, or £129 – takes effect for households who have still not signed up to a fixed tariff. The cap sets the limit on how much firms can charge customers per unit of energy, but does not limit total bills because householders still pay for the amount of energy they consume. The latest cap is £660 (28%) lower than at the height of the energy crisis at the start of 2023 when the Government implemented the energy price guarantee. However, prices remain elevated at £152 or 10% higher than the same period last year. Cornwall Insight said its latest forecast reflected wholesale prices falling as military tensions in the Middle East had eased. But it said the cap still remained hundreds of pounds above pre-pandemic prices, even when adjusting for inflation. Furthermore, there was little indication that prices would reduce substantially over the next few years, it warned. It is predicting a further small fall in January, with prices rising slightly in April, but said market volatility, geopolitical risks and potential changes – and additions – to the non-wholesale components of bills meant forecasts remained changeable. The latest prediction comes as Ofgem announced the go-ahead to an initial £24 billion of investment to upgrade UK energy infrastructure, but revealed the move will push up network charges on household bills by more than £100. Cornwall Insight principal consultant Craig Lowrey said: 'While any reduction in energy bills is welcome, we must not let small fluctuations in the price cap mask the bigger picture. ' Households are still paying far more for their energy than they were before the pandemic, with the current outlook showing little prospect of a meaningful drop over the next few years. 'Our reliance on international energy markets means that while we have a range of supply sources, this brings with it a vulnerability to global events and price shocks – something that was evident in June. If we want to bring real stability and affordability to the energy system, we need to continue, and speed up, our transition to homegrown, renewable power. 'This transition will not happen overnight, and there will be short-term costs along the way. However, in the long-term, building a more self-sufficient energy system is the only way to help shield consumers from international volatility and put us on a more secure and sustainable path for the future.' The fall in energy costs will come as a relief for households, who suffered through an 'awful April' of bill rises, including Ofgem's previous 6.4% price cap increase. Under-pressure households have also been hit with the biggest increase to water bills since at least February 1988, alongside steep rises across bills for council tax, mobile and broadband tariffs, as well as road tax.
Yahoo
01-07-2025
- Business
- Yahoo
£122 boost for British Gas, EDF, EON, Ovo, Octopus customers kicks in today
Energy prices have plummeted today (1st July) for millions of households, as the new price cap comes into effect. Ofgem's new price cap is here, bringing charges down by 7%, though the amount you pay will still be largely determined by the amount of gas and energy you're using. The average household paying by direct debit will see their yearly bill reduced from £1,849 to £1,720. Read more: New PIP rules will see 'millions plunged into hardship' For a typical household, this will reduce their energy bills by £11 a month or £122 a year. This is 10% (£152) per year higher than the price cap set for the same period last year, from 1st July to 30th September 2024 (£1,568). Additionally, analysts at energy consultancy Cornwall Insight have forecast a further drop of 1% to £1,698 a year from this October. Cornwall Insight's principal consultant, Dr Craig Lowrey, said: "Prices are falling, but not by enough for the numerous households struggling under the weight of a cost-of-living crisis. "As such, there remains a risk that energy will remain unaffordable for many. "If prices can go down, they can bounce back up, especially with the unsettled global economic and political landscape we are experiencing. This is not the moment for complacency." He added that the continued growth of domestically produced renewable energy is "a positive step forward". This cause for optimism as it helps protect against global energy price shocks and improves energy security, Mr Lowrey added. He explained: "That progress needs to continue at pace, not just for the net zero transition, but to help build a more stable and secure energy future for all." Join our dedicated BirminghamLive WhatsApp community for the latest updates sent straight to your phone as they happen. You can also sign up to our Money Saving Newsletter which is sent out daily via email with all the updates you need to know on the cost of living, including DWP and HMRC changes, benefits, payments, banks, bills and shopping discounts. Get the top stories in your inbox to browse through at a time that suits you.
