Beginners Guide to Renewable Energy Guarantees of Origin Scheme (REGO)

The transition to renewables from a rigorous carbon era is well underway. Many large businesses can easily make the necessary adjustments to their business infrastructure to reduce their carbon footprint. However, we know that for SME’s the change may not seem as financially viable as it will be for larger companies.

However, reducing your business’s carbon footprint doesn’t have to cause you stress or be a financial burden looming over you.

One of the simplest ways to reduce your businesses carbon footprint is to procure energy from renewable sources.

Here, businesses can choose a standard Renewable Energy Guarantee of Origin (REGO) backed supply, which is assurance that your supplier will provide your energy produced by renewable sources. A REGO backed supply in the UK is subject to availability. However, other options are available such as a wind-backed supply which guarantees that UK wind sources purely generate your estimated consumption.

What is REGO?

The Renewable Energy Guarantees of Origin Scheme is to provide complete transparency to consumers about the proportion of electricity that is supplied by renewable sources.

For commercial properties, electricity accounts for at least half of your business’s total carbon emissions.

The scheme is administered by Ofgem (the Energy Industry Regulator) who act on behalf of the Department for Business Energy and Industrial Strategy (BEIS).

How does it work?  

Ofgem issue one REGO certificate per megawatt hour (MWh) of renewable production to generators of renewable electricity. The purpose of the certificate is to prove to the consumer that renewable sources produced a share of their energy.

All REGOs issued in a year will be referenced in the Ofgem Renewable and CHP register allocated against the supplier that held them at the end of the financial year.

This gives business owners the confidence that their carbon emission rate of their electricity supply is in fact carbon neutral, meaning improvements to the businesses overall figures.

Benefits of REGO

REGO ensures for you is that you can evidence your purchase of renewable power – this can be crucial if environmental sustainability is part of your overall or CSR strategy.

If you would like more information on REGO and how your business could reduce their carbon footprint, don’t hesitate to get in touch.

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