At PE we want to offer our clients a range of options. That’s why we offer both normal tariff’s based off a selection of energy inputs to the grid, or green tariffs that use a REGO certificate.
What are Green Tariffs and How do They Work?
When you choose a green tariff, you’re supporting electricity that comes from renewable sources like wind, solar or hydro. But how that works in practice can be confusing, so here’s what you need to know.
All electricity, whether it’s from a wind turbine or a gas plant, gets fed into the same National Grid. That means there’s no way to direct specific electrons from a wind farm straight to your building. Instead, what makes a tariff 'green' is something called a REGO certificate.
REGO stands for Renewable Energy Guarantee of Origin. Every time one megawatt-hour of renewable electricity is generated in the UK, Ofgem issues a REGO certificate to prove it came from a green source. Energy suppliers can buy these certificates to match the electricity their customers use, effectively 'backing' your usage with renewable generation.
This system allows you to choose a tariff that supports renewable energy, without misleading claims about exactly where your power is coming from. At PE, when we offer a green tariff, we make sure that for every unit of electricity you use, there’s a REGO certificate to match it, giving you verified support for the UK’s renewable sector.
What Does this Mean for your business
Choosing a green tariff means the electricity you use is matched with power generated from renewable sources like wind, solar, or hydro. But because all electricity, whether renewable or not, flows into the same National Grid, it’s impossible to send “green” electrons directly to your building.
Instead, what makes a tariff genuinely green is something called a REGO certificate (Renewable Energy Guarantee of Origin). Every time one megawatt-hour of renewable electricity is produced in the UK, Ofgem issues a REGO to prove it came from a clean source.
At PE, we buy these certificates to match the electricity our green tariff customers use. That means for every unit of energy you consume, there’s verified renewable generation behind it - a simple, transparent way to support the UK’s transition to cleaner power.
For many SME's this can
support broader sustainability goals
Carbon Reporting
Electricity backed by REGOs is recognised under Scope 2 emissions reporting frameworks such as the Greenhouse Gas Protocol and RE100.
Credible Action
It shows customers, investors, and stakeholders that you’re taking verified steps to reduce your environmental impact.
Procurement Alignment
Green tariffs are a simple way to align your utilities spend with your values, without needing to install on-site generation or make large upfront investments.
That said, transparency is key. A green tariff doesn’t guarantee that new renewable projects are being built as a direct result of your choice, it supports the existing renewable market rather than actively funding new capacity. It should be noted however, that consequently as the demand for REGO's increases, the investment in renewables does too. There is also the option to buy what is called ‘Deep-Green’ energy. This type of tariff is more expensive, but is directly related to new renewable energy.
For businesses looking for a straightforward and verified way to improve their energy profile, being on a Green tariff whether it is mid or deep green is a strong step in the right direction.
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