A group of major UK businesses has asked for changes to the Renewable Energy Guarantees of Origin (REGO) scheme.
The businesses, including BT Group, British Land, Coca-Cola Europacific Partners, and others, want the government to make the REGO system more effective in promoting renewable energy investment.
Signatories also include EnergyTag, Good Energy, Google, Pearson, Unilever, Unite Students, Virgin Media O2 and Vodafone UK.
The REGO scheme helps consumers understand how much of their electricity comes from renewable sources and allows companies to show their use of green power.
However, the scheme’s current structure does not sufficiently encourage new renewable projects or provide clear pricing, the group has said.
The Climate Group has proposed three main changes.
First, they want more transparency in REGO pricing to help businesses better understand market value.
In the past two years, prices have ranged from £0.2/MWh to £25/MWh.
Second, they suggest matching electricity more accurately and frequently to improve data quality.
Third, they call for a system that supports more investment in new renewable energy projects.
The group believes these changes could make the REGO scheme a stronger tool for achieving a zero-carbon grid by 2030.
Sam Kimmins, Director of Energy, Climate Group said: “Reform is urgently needed to ensure our energy certification system is fit for purpose, incentivising and enabling businesses to invest even more in the UK’s renewable future.”
Rich Marsh, Sustainability Director, BT Group commented: “The recent volatility in the REGO market underscores the urgent need for reform to ensure greater transparency and certainty for businesses who want to accelerate the transition to net zero.
“We recognise the role that businesses must play in this process, and we urge the government to work with industry to create a more predictable and effective system that supports long term investments in renewable energy and decarbonises the UK grid.”
