Standard content for Members only
To continue reading this article, please login to your Utility Week account, Start 14 day trial or Become a member.
If your organisation already has a corporate membership and you haven’t activated it simply follow the register link below. Check here.
Good Energy has been granted a lasting exemption from the price cap for its standard variable tariffs (SVTs) for both gas and electricity.
Ofgem said the supplier has successfully justified the derogation on the basis of their green credentials.
The price cap legislation includes an exemption for tariffs which Ofgem deems to “support the production of gas, or the generation of electricity, from renewable sources”.
According to the regulator, tariffs must meet three criteria to be eligible for an enduring derogation:
- Customers have actively chosen the tariff, rather than being moved onto it by default.
- By choosing the tariff, customers make a material difference in the support given to renewable energy.
- The tariff exceeds the level of the price cap due to the costs of supporting renewable energy.
Good Energy had already secured a temporary three-month derogation at the beginning of 2019, which was later extended until 1 September. Ofgem has now granted an exemption on an enduring basis after concluding that the supplier’s SVTs fulfil all three of the necessary criteria.
Commenting on the announcement, Good Energy chief executive Juliet Davenport said: “Good Energy is exempt from the price cap because our tariffs genuinely support the growth of renewables and clean technologies. And because our customers have actively chosen to contribute to that support.
“If we are going to tackle climate breakdown, individuals must be empowered to choose to be part of the solution. We know customers want the ability to make that choice, and recently it has been complicated by energy companies taking shortcuts to offer cheap ‘green’ tariffs.
“When you choose a renewable tariff, you are choosing more than ‘net zero’ or some cheap certificates. You are choosing regeneration — support for the growth of clean energy.
“Ofgem’s decision recognises that Good Energy’s model does precisely this.”
Ofgem has also granted lasting exemptions to Ecotricity for its Green Electricity, Green Electricity + EV and Green Gas tariffs and to Green Energy UK for its Sparkling, Still and Tide tariffs.
Like Good Energy, both suppliers had previously secured temporary derogations.
Please login or Register to leave a comment.