REGO certificates for business electricity

What a REGO certificate is

A Renewable Energy Guarantee of Origin, or REGO, is a certificate showing that one megawatt hour of electricity was generated from an eligible renewable source. Ofgem describes the scheme's purpose as giving consumers transparency about the proportion of electricity that suppliers source from renewable generation.

The key facts, from Ofgem's own scheme pages:

• One REGO per megawatt hour. One certificate is issued for each MWh of eligible renewable output.
• Issued to generators. Renewable generating stations in Great Britain and Northern Ireland apply for accreditation and receive REGOs through Ofgem's Renewable Electricity Register, which replaced the old Renewable and CHP Register.
• Run by Ofgem for government. Ofgem administers the scheme for generation in Great Britain on behalf of the Department for Energy Security and Net Zero, and in Northern Ireland on behalf of the Utility Regulator.
• Used mainly for fuel mix disclosure. Ofgem says the primary use of REGOs in Great Britain and Northern Ireland is supplier Fuel Mix Disclosure.

REGOs relate to electricity only. Green gas is evidenced separately, with biomethane certificates; see our green business energy guide for both, and our sister site's guide to green electricity for business for how green tariffs are set up.

How REGOs move from generator to supplier

REGOs follow a yearly cycle that runs alongside the fuel mix disclosure period of 1 April to 31 March. Based on Ofgem's guidance for generators and suppliers:

1. A renewable generator is accredited under the REGO scheme through the Renewable Electricity Register.
2. The generator submits its output data for generation in the April to March period.
3. REGOs are issued to the generator, one for each megawatt hour of eligible renewable output.
4. Certificates are transferred to suppliers. The register is used to receive and transfer REGOs, and licensed suppliers hold them as evidence for fuel mix disclosure.
5. Ofgem redeems them. REGOs must be in a supplier's register account by midday on 1 July after the disclosure period; at that point Ofgem redeems the REGOs held for that period that have not been retired or revoked.
6. The supplier discloses its fuel mix to customers for that period by 1 October.

For a business customer the practical point is timing: the certificates behind a year's green supply are settled after that year ends. That is why it helps to have the supplier's commitment to your share of REGO-backed electricity written into the contract, rather than relying on a general statement.

REGOs and fuel mix disclosure

Fuel mix disclosure is the rule that makes REGOs matter. Ofgem says the Electricity (Fuel Mix Disclosure) Regulations 2005 require every electricity supplier in Great Britain to tell its customers the mix of fuels (coal, gas, nuclear, renewable and other) used to generate the electricity it supplied over each 1 April to 31 March period, and that this requirement is now standard licence condition 21 of the supply licence.

When a supplier says that a share of its electricity is renewable, the REGOs it holds are the evidence. When it sells your business a REGO-backed contract, it is committing that REGOs matching the agreed share of your consumption back that supply. Asking for the supplier's latest fuel mix disclosure alongside a quote is a simple check that its overall position matches what it is telling you.

REGOs and European Guarantees of Origin

The European Union runs its own version of the scheme, called Guarantees of Origin (GoOs). Since the UK left the EU, the two schemes no longer recognise each other in the way they once did. Ofgem says:

• as of 1 January 2021, the EU no longer recognises UK REGOs
• from the disclosure period beginning 1 April 2023, GoOs are no longer recognised for use in GB fuel mix disclosure (2022-23 was the last period in which suppliers could use EU GoOs that Ofgem had recognised)
• Ofgem does not recognise non-EU GoOs for GB fuel mix disclosure

So for a business supply in Great Britain, REGOs are the certificates to ask about. If a quote describes its green element in terms of guarantees of origin, ask the supplier to confirm whether it means REGOs, and which period they cover.

What REGO-backed means on a business electricity quote

These questions sit alongside the usual checks on unit rates, standing charges, contract length and end-of-term terms covered in our business electricity comparison guide.

How to check a green quote is REGO-backed

You do not need to be an energy specialist to test a green electricity claim. These checks cover most situations:

1. Ask the supplier, in writing, what backs the green element: REGOs, the share of your supply they cover and the disclosure period.
2. Ask for the supplier's fuel mix disclosure for the latest period, and check its renewable share is consistent with what you are being sold.
3. Read the contract and schedules, not just the quote summary, and check the green element is there.
4. Look at Ofgem's Renewable Electricity Register public reports if you want to dig further. Ofgem says the register's public reports are updated daily and cover REGO certificate data.
5. Keep the evidence with your contract, so whoever prepares your reporting can use it later.

Fidelity Energy says REGO-backed electricity lets a business report zero Scope 2 emissions on a market basis under the Greenhouse Gas Protocol Corporate Standard. Whether and how you use that is for whoever prepares your reporting, so ask them what evidence they need before you agree a contract.

What REGOs do not do

REGOs are evidence, not a different kind of electricity, so it helps to be clear about their limits:

• They do not change the physical supply. Your electricity still arrives through the same networks; the certificates show that matching renewable generation took place.
• They do not remove the Climate Change Levy. GOV.UK says the renewable-source exemption only applies to electricity generated before 1 August 2015, so REGO-backed business electricity normally still carries the levy. See VAT and Climate Change Levy.
• They do not cover gas. Green gas uses separate biomethane certificates.
• They are not recognised in the EU. The EU has not recognised UK REGOs since 1 January 2021, which may matter if your group reports in an EU country.

None of this makes REGOs less useful. It means a green electricity contract should be judged on its evidence, its terms and its price, like any other.

How we help with REGO-backed electricity

Forever Communications works as an agent of Fidelity Energy, an independent business energy broker and consultancy. Fidelity Energy can source REGO-backed electricity across its panel of suppliers (it says 24+; that is a broad panel, not every supplier in the market) and prices green options alongside standard ones. We collect your bills and requirements, help you compare the quotes and check that the REGO backing is written into the contract before you decide.

Fidelity Energy is normally paid commission by the supplier you choose, included in your rates (or, if you opt for it at the start, a fee by invoice instead), and Forever Communications receives a share of Fidelity Energy's payment. Suppliers must show broker costs in your contract's principal terms; see energy broker fees. Fidelity Energy is on the Energy Ombudsman's broker register, the approved redress scheme Ofgem requires for brokers paid by suppliers; see energy broker ombudsman. There is no cooling-off period once you agree a business energy contract, so we encourage you to settle the questions above first; see business energy cooling off period.

Contact us with a recent electricity bill and the share of renewable electricity you need, and we can arrange business energy quotes from Fidelity Energy's panel.