Blog Post

Value of Renewable Energy Guarantee of Origin (REGO) Certificates has soared by 50% since January

Richard Simmonds • Jun 09, 2021

The price of REGO certificates has jumped by 50% since January according to a new poll released by Cornwall Insight and prices are set to continue to rise throughout the remainder of the year.

What are REGOs?

The REGO scheme allows energy suppliers to demonstrate to consumers that the electricity they supply is from renewable sources such as from solar and wind farms. The energy regulator Ofgem oversees the scheme on behalf of the Department for Business Energy and Industrial Strategy (BEIS).

With demand for clean energy rising rapidly as the governments of the world press their green agendas, energy suppliers are increasingly utilising them in an attempt to demonstrate that they are reducing their carbon emissions.

Clean energy is becoming an ever-increasing focus for consumers too and energy suppliers use REGOs to show them that they are doing their part in an attempt to attract new customers.

Demand from large corporate power buyers has surged in recent months to send prices of REGOS soaring with Cornwall Insight’s Green Certificates survey for Fuel Mix Disclosure prices have risen by 50% since the start of 2021.

“Demand outlook was also positive among participants, with 64% reporting increased demand for REGO backed supply products in the past three months. As well as citing end-of-year supplier buying, uncertainty surrounding the future acceptance of European Guarantees of Origins (GoOs) and greater climate ambition from businesses as bullish demand drivers,” said a Cornwall Insight’s analyst.

Also read: Ofgem to increase monitoring of Renewable Energy Guarantees of Origin' (Rego) certificates following Times Investigation

Easing of Covid restrictions raising costs

One of the major drivers for the rise in REGO values was the easing of restrictions imposed during the Covid-19 pandemic. Large corporations and industry are getting back to normal as they seek to make up for lost time.

Electricity prices had fallen to record lows during the first UK lockdown resulting in falling wholesale energy prices, now as the industry gets back on its feet prices are forecast to return to pre-pandemic levels by the end of the year.

Also read: How should Energy Suppliers explain Energy Bill Increases?

REGO Controversy

Several energy suppliers including Good Energy, Scottish Power and British Gas have called on Ofgem to better regulate the REGO scheme as they say it promotes a false market and allows suppliers to claim they are providing clean energy when in reality they aren’t.

The suppliers have asked for greater transparency to the scheme and have called for no REGOs to be assigned to any volume of electricity unless there is direct authentication that it was genuinely generated via clean methods.

According to Cornwall Insight, despite market participants calling for REGO market reform, 74% said that they had seen no improvements since January.

Also read: ‘Green’ Tariffs to come under increased government scrutiny over growing ‘Greenwashing’ concerns

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