Ovo to end using REGOs

Ovo Energy chief Raman Bhatia is to announce his company will end the use of Renewable Energy Guarantees of Origin (REGO) certificates as part of a drive to end industry greenwashing.

At an event taking place in London later today (18 April) Bhatia will unveil a series of measures, called Path to Zero, that the company believes the UK needs in order to hit its net zero ambitions, with a warning that without significant change, the country is on track to miss its carbon targets.

The use of REGOs has been the subject of much debate in recent years, with questions surrounding the use of the certificates in green tariffs. The subject has been a source of contention in the sector, with some arguing the certificates do not create a demand for renewables.

Ovo said it commissioned Cornwall Insight to investigate the role of REGOs in the renewable energy system.

“The findings were clear. REGOs provide little to no benefit to renewable energy generation, and will instead soon become a drain on customer finances if their use is continued,” the company said.

It added that the cost of the certificates is starting to rise and “nearly £10 billion” could be spent on them by the end of the decade.

As such the company has said it will “immediately end the use of REGOs” and will instead focus on decarbonisation of homes.

Ovo is additionally calling for a new kitemark system for the green tariff market. This would help customers avoid greenwashing practices by clearly identifying the tariffs directly supporting decarbonisation or the generation of renewable energy.

As part of its plan, Ovo is also unveiling a new £10 million Green Skills Academy to help the UK tackle the green skills shortage, creating 15,000 jobs.

The new support package will also include free or heavily discounted low carbon technologies such as smart thermostats, advice to improve home insulation, free tracking and support understanding energy usage, and customers being paid for shifting energy use to greener and cheaper times of day.

In a speech today, Bhatia is expected to say: “I am the CEO of an energy supplier, and I want our customers to use less energy. I want them to pay us less for their heating, lighting, and power each month. And I want us to help get the UK back on track to meet our climate targets, which demand a 78% reduction from 1990 levels by 2035.

“Greenwashing is a luxury no one can afford. By making this change we’ll save consumers money and reinvest in true green energy, and we hope others will follow our lead.”