The best kind of energy?

Hi Guys,
One thing that been niggling me is this. Bulb state from their main page
We supply all our members with 100% renewable electricity and 10% green gas. When you switch to Bulb, we make sure that for every unit of electricity you use, a unit is produced and put on the grid by a renewable source like Llyn Brenig Hydro in North Wales. In addition, 10% of our gas comes from bio-methane. That’s gas produced from organic matter like sewage and manure - which is then re-injected onto the grid (minus the smell). So if this is their source why are the price rises coming in? surely this is not coming from the same market as the big 6 suppliers or am I missing something here

Some background here -


and here -

Hi @Timm those links @198kHz posted have all the details (thanks again :slight_smile: ) but I can give you a brief explanation too if you like.

There are really two bits going on here. The first is that all our electricity is renewable, but only 10% of our gas is renewable, so the rising gas prices affect us quite a lot. The other thing is that, essentially, the cost of electricity in the UK is pretty much the same for each area, regardless of the source of the electricity. The generators sell their electricity to suppliers at a cost per kWh which is either agreed with the supplier a few months in advance (known as a power purchase agreement, where a supplier and a generator agree to buy/sell a certain amount of electricity in a certain time period for a certain price) or it’s bought on the wholesale market at a price which varies day by day, but doesn’t vary depending on the source of the electricity. The generators are guaranteed a price for the electricity they produce for a few years by the government when they’re built, and after that they sell their electricity either through power purchase agreements or on the wholesale market.

So essentially all the electricity (and gas) in the uk is sold to the suppliers at the same price regardless of source. There’s a small additional price that we pay for renewable obligation certificates, to guarantee our electricity (and 10% of our gas) is renewably generated, and we have a few power purchase agreements, but beyond that we’re affected by the rising electricity and gas prices just as much as anyone else.