On Bulb’s help pages it explains that 20% of the power supplier is bought using Power Purchase Agreements i.e. direct from producers. The remaining 80% is bought from the wholesale market and renewable certificates (REGOs) are bought to match the amount of power purchased on a month by month basis*.
REGOs have come in for criticism because the price of the certificate has been (too) cheap. See https://regen.co.uk/we-need-to-talk-about-green-energy-tariffs/
My understanding is that demand for REGOs is low, hence the low price, therefore there’s little incentive to build more renewable capacity in order to sell more REGOs. So does the current matching approach genuinely drive investment in renewables?
- I find the help page at odds with the main ‘Our Energy’ page, which gives the impression that the portion bought from the wholesale market is significantly smaller.