Top 5 green energy distributors in the UK

Highlights

  • About 7 out of 10 customers believe that businesses that markets them green energy buy it straight from generators.
  • Which? revealed that only a small number of the 33 energy distributors it surveyed produce their own renewable electricity.

Around seven out of ten customers in the UK believes that businesses which sell green energy to them, buy power straight from generators, but this is not always true, Which? said in its recent report.

The consumer publication revealed that only a small number of the 33 energy distributors it surveyed produced a large amount of their own renewable electricity.   However, most of the energy distributor depended on Renewable Energy Guarantees of Origin (Rego) certificates for renewable electricity that their detractor releases, which enable businesses to declare their energy is green.

Three small distributors have secured top place in the newly released rating of the companies’ green credentials that includes Good Energy, GEUK and Ecotricity, and they were the only distributors that were recognized with an “Eco Provider” badge by the group.    

Good Energy scored 19 out of 20 points in the study to secure the first position. It purchased most of its renewable electricity from the generators and even produces some of its own. 

Although other distributors proclaimed that deploying their own solar panels or wind turbines is unrealistically expensive.

Also read: Can nuclear power help UK meet its energy demands?

Utilita, which was the worst performer with score one out of 20, told the consumer publication that its efforts were aimed at helping households reduce their energy consumption.

The best performers among the large businesses were Scottish Power, Bulb, Octopus and British Gas.   

Scottish Power scored 11.5 out of 20 points. It is one of the leading green energy generators in the country and can tap into its own wind farm to provide electricity to customers.

Customers are now becoming more environmentally conscious and some energy businesses are aiming to invest in the technology that is needed to clean up the grid, purchase it from renewable generators and generate renewable electricity, said the Which? Magazine editor Harry Rose.

He added that some other energy distributors are not upfront and transparent about their green credentials, which make it harder for consumers to make informed decisions.

The Consumer publication said that the distributors should be more clear on how renewable electricity is defined and marketed and it can help customers to better determine what they are buying and about where to buy their energy from.

Also read: How would Contact’s (NZX:CEN) latest deal drive renewable electricity demand?

The Greenest Energy Distributors Score out of 20      

Let us take the look at the FTSE listed stocks that are into renewable energy business.

Good Energy Group Plc (LON: GOOD)

Good energy Group Plc generates and purchases renewable electricity and supplies green electricity and gas to household and corporate sector.  In August, Good Energy announced that it will offer customers solar and battery storage through its partner, Caplor Energy. It also launched a new time of use tariff designed to support electric vehicle drivers.  

Good Energy’s shares are trading at GBX 308.50, up by 4.58% at 9:59 BST and Its current market capitalization stands at £49.10 million. It has given a return of 82.24% in 1 year, as on 22 October 2021.

Centrica Plc (LON: CAN)

Centrica Plc is an innovative energy services and solution company. It operates as the parent company of British Gas, Bord Gais Energy, Centrica Business solutions, Energy Marketing & Trading and Upstream. In September, the company completed construction of British Army’s first solar farm. The company reported an adjusted operating profit from continuing operations at £262 million for H1 2021 (H1 2020: £264 million). Its free cash flow from continuing operations rose by 4% to £524 million in H1 2021.

Centrica Plc’s shares are trading at GBX 59.46, down by 0.03% at 10:53 BST and Its current market capitalization stands at £49.10 million. It has given a return of 82.24% in 1 year, as on 22 October 2021.

Also read: UK energy crisis: Pure Plant, other firms going bust

SSE Plc (LON: SSE)

FTSE 100 constituent SSE Plc is a multinational renewable energy business that operates in UK and Ireland and is one of the leading electricity network companies. In September this year, the company entered into an agreement with Pacifico Energy, a Japan-based renewable energy business, to develop offshore wind projects in Japan. In Scotland, it also announced combining the Berwick Bank with Marr Bank offshore wind projects with capacity of 4.1 GW.

SSE Plc’s shares are trading at GBX 1,627.50, up by 0.62% at 10:53 BST and Its current market capitalization stands at £17,234.40 million. It has given a return of 22.46% in 1 year, as on 22 October 2021.

BP Plc (LON: BP)

FTSE 100 listed BP Plc is a UK-based global energy company with operations in South America, Australasia, Europe, North America, Asia, and Africa. It offers fuel to power industry, transport, energy for heat and light and the petrochemical products. In October, the company has acquired Blueprint Power, a US-based technology business, to transform buildings into a flexible power network by connecting them to energy markets through cloud-based software.

BP Plc’s shares are trading at GBX 356.65, up by 0.13% at 10:53 BST and Its current market capitalization stands at £71,130 million. It has given a return of 78.34% in 1 year, as on 22 October 2021.

Royal Dutch Shell PLC (LON: RDSA)

Royal Dutch Shell Plc completed sale of Western Desert asset in Egypt to Cairn Energy Plc and Cheiron Petroleum Corporation in September and entered into an agreement to sell Permian interest to ConocoPhilips for $9.5 billion. 

Shell’s shares are trading at GBX 1,778, up by 0.32% at 10:53 BST and its current market capitalization stands at £64,509.87 million. It has given a return of 95.80% in 1 year, as on 22 October 2021.

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