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Ecotricity started generation with a 40-metre turbine in 1996, which at the time was the largest in the country. [8] In 2007, Vince ran an advertisement on the back page of The Guardian newspaper inviting Richard Branson to his house to discuss solutions to climate change
In the United Kingdom, suppliers are legally obliged to purchase a proportion of their electricity from renewable sources under the Renewables Obligation and there is a danger that energy suppliers may sell such green electricity under a premium 'green energy' tariff, rather than sourcing additional green electricity supplies. [3]
The pricing or tariffs can also differ depending on the customer-base, typically by residential, commercial, and industrial connections. According to the U.S. Energy Information Administration (EIA), "Electricity prices generally reflect the cost to build, finance, maintain, and operate power plants and the electricity grid."
MSP kWh is the amount of electricity consumed at the 'meter supply point', which is the customer's meter. GSP kWh is obtained by multiplying the MSP kWh by the Line Loss Factor (LLF, a figure > 1) to include the amount of electricity lost when it is conducted through the distribution network, from the 'grid supply point' to the customer's meter.
Interest has increased in recent years due to UK and EU targets for reductions in carbon emissions, and government incentives for renewable electricity such as the Renewable Obligation Certificate scheme (ROCs), feed in tariffs (FITs), and Contracts for Difference as well as for renewable heat such as the Renewable Heat Incentive.
An eco-tariff, also known as an environmental tariff, is a trade barrier for the purpose of reducing pollution and improving the environment. These trade barriers may take the form of import or export taxes on products that have a large carbon footprint or are imported from countries with lax environmental regulations.
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