What are REGOs?
The Renewable Energy Guarantees Origin scheme, or REGO, is designed to provide customers with transparency about the proportion of electricity that suppliers source from renewable generators.
Ofgem issue 1 REGO certificate for every 1,000 units (1 Megawatt) of energy produced by a renewable generator – which certifies the energy is generated is from a renewable source. When an energy supplier buys energy directly from a renewable generator they also buy the accompanying REGO certificates.
REGO certificates are submitted annually by energy suppliers to Ofgem. If the number of certificates covers the amount of energy sold – they can claim their energy is 100% green.
Are there any problem with REGOs?
REGO certificates can be traded on a secondary market, separately from where the energy is sourced. This means a supplier can purchase brown energy and then REGO certificates separately to make their energy “100% green”. When Shell bought First Utility in March 2019 their fuel mix went from 3% renewable to 100% green energy - by purchasing the necessary REGO certificates. This is considered “greenwashing” and the Energy regulator has vowed to end this.
What are PPA's?
A PPA is a Power Purchasing Agreement. This is when an energy supplier agrees to buy electricity directly from an energy generator.