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Leading the way and leveling the playing field for UK manufacturers to choose green energy supply

Business energy supplier DONG Energy is offering UK manufacturers the opportunity to choose renewable electricity at no additional premium to traditional ‘brown energy’ sources.

The company has announced that it will cover additional costs associated with ‘going green’, so that UK businesses can access renewable electricity and achieve their sustainability ambitions without commercial disadvantage.
“We are taking this bold step because we believe that in a climate where operating costs must be kept to a minimum, manufacturers should have access to renewable electricity supply without paying a premium,” said Jeff Whittingham, managing director of DONG Energy Sales.
“If we are to embrace a truly sustainable future, we will need to take an integrated and forward-thinking approach to energy. One part of this is putting renewable electricity on an equal footing with traditional ‘brown energy’ sources.”
In 2001, the British government introduced the Climate Change Levy, a tax designed to encourage businesses to use less energy. Businesses that purchased renewable electricity could gain exemption from the tax by purchasing Levy Exemption Certificates (LECs). This drove a high demand for renewable supply in the UK and resulted in renewable electricity selling at a similar or lower price to brown electricity. 

Sustainability Choice
Last year the government announced that the exemption would be phased out from August 2015. As a result, demand for renewable electricity has once again become a sustainability choice for businesses.
The Renewable Energy Guarantee of Origin (REGO) certificates, used as evidence for the source of renewable electricity supply, now hold a value in the market and renewable electricity is sold at a premium to brown. Businesses leading in carbon reduction have paid this premium for renewable allowing them to report lower carbon emissions in market-based greenhouse gas (GHG) assessments and therefore receive the reputational benefits of committing to sustainability.
As a leader in the development and operation of offshore wind in the UK, DONG Energy believes that all businesses should have access to renewable electricity supply without incurring additional cost. This move not only underpins the business’s vision to lead the energy transformation, but also demonstrates that it is accompanying its customers on the journey.

Tight Budgets
Whittingham added: “We are making this announcement at a time of tight budgets and fierce competition for manufacturers of all sizes who are under growing pressure to reduce carbon emissions whilst driving down costs.
“At a time when cost is key the additional financial burden of buying renewable energy might be difficult for some companies to justify on a commercial basis.
“We are leading the way to make this move because we believe that by making this investment on behalf of UK companies, we can help to bring businesses one step closer to a sustainable energy future.”
The new scheme forms part of DONG Energy’s integrated approach to sustainability. It complements a range of products designed to support businesses in achieving carbon and cost reduction, through a combination of energy reduction activities, flexibility and demand management solutions and commodity cost management.

About DONG Energy
DONG Energy is one of the leading energy groups in Northern Europe, headquartered in Denmark. Around 6,700 employees are engaged in producing energy from offshore wind farms, bioenergy and thermal heat and power plants, oil and gas fields; as well as providing energy solutions to residential and business customers.
Group revenue was €9.5bn in 2015. 
The company is one of the largest developers and operators of offshore wind, with ownership share of around 43.8 per cent of the offshore wind farms installed in the UK. 

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