OVO Energy becomes first mainstream energy company to eradicate dirty coal from fuel mix.
Pioneering gas certificate mechanism paves the way for cost-effective decarbonisation of the industry
The move has been welcomed by Government and green groups as a bold and innovative contribution toward wider efforts to reduce carbon emissions and ultimately force coal out of the UK energy market
Eliminating coal, the most polluting form of power generation, from our fuel mix, sees OVO Energy today announcing a carbon intensity reduction of 34% versus last year
Eschewing the industry status quo, OVO Energy has spent the last 12 months working with Government, the regulator and an independent generator on an innovative market mechanism to dramatically reduce its CO2 emissions and also scrub coal from its fuel mix. OVO has been determined to find a way to provide low carbon energy whilst still offering the best possible deal for customers.
Coal produces twice the carbon emissions of gas, as well as being responsible for a host of devastating environmental and health impacts. Despite this, it still makes up 26.7% of the UK’s electricity mix.
Stephen Fitzpatrick, Founder and CEO, OVO Energy said;
“As an energy supplier, it's our responsibility to make sure we're offering great service, terrific value and responsibly sourced energy. I'm delighted that we've reduced our carbon footprint by 34% whilst still giving our customers value for money.
We're committed to increasing the volume of renewables in our fuel mix and I feel proud to be leading the market in finding smarter ways of doing this.”
How it works
Power stations receive ‘generator certificates’ proving they have produced power. Suppliers use these to certify the type of power used in their fuel mix. Certificates for renewable power also carry a ‘top up’ premium and are tradeable commodities in their own right. OVO is the first supplier to voluntarily add a premium to Gas Generator Certificates.
By paying generators which produce electricity from gas rather than coal as an extra ‘top up payment’, OVO can reward gas and squeeze out coal, without customers paying a penalty for their cleaner energy.
The Rt Hon Amber Rudd MP, Secretary of State for Energy and Climate Change commented:
“We are committed to keeping bills as low as possible for hardworking families and businesses and cutting carbon emissions as cost effectively as possible. Moving from unabated coal to gas is going to be an important part of our transition to a low carbon economy.
“Harnessing the power of consumers to push for such a change shows that the energy market can help deliver a lower carbon economy. We welcome companies like OVO innovating in this way.”
Dr Doug Parr, Policy Director at Greenpeace UK said:
“We’ve long known that coal is the dirtiest way of generating power so it’s good to see a company like OVO Energy getting out of it. It shows that not only is there an environmental case against the climate and air pollution it causes, but also a market case that it's losing any attractiveness it once had. There is a golden opportunity for the UK Government to build on this by setting a coal phase-out date early in the 2020s and telling the rest of the world at the Paris climate talks that ending coal is possible.”
OVO Energy Ltd, registered office 1 Rivergate Temple Quay Bristol, BS1 6ED, company no. 06890795 registered in England and Wales, VAT No. 100119879
Additional terms and conditions
Please see below for full terms and conditions on 33% renewable electricity, 3% interest rewards, exit fees and saving claims.
1Monthly cost - Representative monthly direct debit costs based on a non-economy-7, dual-fuel, medium user (3100 kWhs elec. and 12500 kWhs gas) paying in advance by direct debit, including online discount. All rates correct as of 23/08/16, but may go up or down.
2Weekly cost - Representative weekly costs based on a non-economy-7, dual-fuel, medium user (3100 kWhs elec. and 12500 kWhs gas). All rates correct as of 23/08/16, but may go up or down.
3Pay Monthly Savings are based on the average estimated annual costs for new PAYM OVO customers quoted through the OVO website (based on household and/or consumption information provided by those customers), compared to their current supplier and tariff. Comparisons taken between 01/01/2016 and 11/10/16. Incl VAT. Actual savings may vary according to your current supplier or tariff, individual tariff options, household information, consumption and location.
4Pay As You Go Savings are based on the average estimated annual costs for new PAYG OVO customers quoted through the OVO website (based on household and/or consumption information provided by those customers), compared to their current supplier and tariff. Comparisons taken between 01/01/2016 and 11/10/16. Incl VAT. Actual savings may vary according to your current supplier or tariff, individual tariff options, household information, consumption and location.
We include almost twice as much renewable electricity as the national average: At least 33% of electricity in all of our tariffs comes from renewable sources. The national average, according to Ofgem as at March 2014 was 16.7%. For more information please visit this page.
33% of your electricity comes from renewable sources: 33% renewable electricity as standard as of 1st April 2015. Renewable electricity is generated from wind, solar, geothermal, wave, tidal, hydro, biomass, landfill gas, sewage treatment plant gas and biogas.
3% interest: Calculated at 3% per year, paid monthly based on number of days in credit and the amount left in your account after you’ve paid your bill. OVO Interest Reward is capped at 12 times the amount of the current direct debit amount and is available to customers paying by advance direct debit. Terms apply: http://www.ovoenergy.com/terms/
95% of new customers save when switching to OVO: Based on all new customer signups between 01/02/2016 and 31/07/2016
94% of surveyed customers would recommend us: OVO conducted a survey of their customers in between 1st January 2016 and 15th April 2016. Out of 15,312 customers who responded, over 94% rated OVO 6+ when asked 'how likely would you be to recommend us to a friend and family, on a scale of 1 to 10.
Britain's top rated energy provider: Britain's top rated energy provider in the Which? 2015 satisfaction survey. Survey conducted in October 2015. Awarded in January 2016.