However,before entering into an agreement with a supplier,it is important to ask the following questions to ensure that the service you receive meets your business requirements.

What is my renewable supply made up of?

Firstly it is useful to know exactly what your supply is made up of.

It is often assumed that all renewable energy is generated from wind power, when in fact suppliers will regularly use a variety of sustainable energy sources. The energy supplied by npower for example comprises windpower, hydro, biomass, landfill gas,industrial & municipal waste and sewage gas.

Watch out for any company that claims its renewable energy is ‘purer’ or ‘greener’ than others and uses this as an excuse to charge an exceptionally high premium.All energy generated from renewable sources releases virtually zero CO2 emissions to the atmosphere and therefore no form of renewable energy can be better or purer than another.

How much does it cost?

Remember that renewable energy is in short supply and is therefore classed as a premium product. As a result, suppliers generally price

renewable energy slightly higher than the cost of the Climate Change Levy which is anything over 0.43p per kWh.

How will the renewable energy be applied to my electricity bill?

Ask how your supplier applies the green energy to your bill. npower

for example bills the green energy separately which enables you to

relate your green energy consumption to the Climate Change Levy.

Some companies do not provide a comprehensive break down and combine all your energy consumption into one.

What length of contract do I want?

Look at exactly how long you want your green energy contract to last. Most companies enter a 12 month agreement but contracts can be longer if you want.If you do sign up for a longer period,bear in mind that suppliers may insert an indexation within the contract stating that if the Climate Change Levy increases during this time,they will raise the price of their renewable energy accordingly.

How is the renewable energy audited?

All renewable power generators are required to apply for a Levy Exemption Certificate (LEC) to prove the energy comes from a qualifying renewable source. These Certificates are then sold along

with the electricity to a supplier. The supplier will need to use the

Levy Exemption Certificates to demonstrate to Customs & Excise that its electricity has been generated from a qualifying source and is eligible to be sold to customers without having to pay for the Climate Change Levy.

At any one time,suppliers must be able to prove how much renewable energy they have purchased and how much they have sold on to their customers.

This is achieved via a regular auditing process which requires the supplier to log details of each Certificate purchased throughout the year – in effect,it is the Levy Exemption Certificate which acts as the proof that the supplier has bought renewable energy and thus forms the audit trail.

It is important to know this as it is possible for companies to obtain LECs without actually purchasing the green energy that goes with them and they could potentially be supplying you with non- renewable electricity.

Therefore,it is crucial that you ask your supplier exactly how it audits its renewable energy supply.It is rare to find a supplier that does not purchase its energy alongside a Certificate but it is important to check nevertheless.

What about Good Quality Combined Heat and Power?

Renewable energy is in short supply which can make it difficult to meet customer demand.A good clean alternative is CHP.Although electricity generation is generally gas-fired,the waste heat is put to

good use in a process or heating application. Overall efficiency is therefore much higher as there are less CO2 emissions to the atmosphere than if the heating and electricity production was two separate processes.

Do bear in mind the difference between the two types of energy.

Some suppliers may try and package Good Quality CHP as renewable energy and charge a higher premium for it.Good Quality CHP is in much greater supply than renewable energy and therefore is more likely to trade at the same rate as the Climate Change Levy.

Perhaps the best approach when considering the purchase of green energy is to buy as much renewable as possible and then take the balance as Good Quality Combined Heat and Power.

By asking these questions and keeping in close contact with your supplier to remain one step ahead of the renewables market,you can ensure that you always receive the best service for your business needs and do your bit towards combating climate change.

Highlights

The take up of renewable energy is increasing and npower continues to work closely with many local authorities across the UK.Below are some of the more recent highlights which help to underline the work that local authorities are carrying out across the UK:

Brighton and Hove City Council signed a two year contract for 29 GWh of green electricity.The town hall and 22 other sites are now being supplied with 100 per cent green electricity.

Wolverhampton City Council has been working closely with organisations around the region to promote energy efficient practices and purchased 4.9GWh of green electricity.In addition,the Council's Civic Centre has also become the first civic building in Wolverhampton to be supplied with 100 per cent green electricity.

Hull City Council has achieved an impressive milestone by purchasing 35.1 GWh of green electricity.The three-year contract means Hull City Council has become the only nPower customer to be featured in the top twenty of UK Large Users of Green Energy.

As a result of the council's electricity will come from renewable sources such as hydro stations and wind farms.

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