Evidencing zero carbon renewable energy with energy labels

SmartestEnergy issue our renewable electricity customers with an energy label(s) on an annual basis to evidence their zero-carbon supply. As our Renewables Trading and Marketing teams are working behind the scenes to prepare 2000+ energy labels for our I&C customers, Nathan Dad, Head of I&C Supply Sales explains the verification process undertaken by the Carbon Trust and the importance of the ever-growing need to evidence zero-emissions as corporates accelerate their green plans. 

On the 1st August 2022 Ofgem disclosed the UK’s fuel mix for the reporting period, 1st April 2021 to 31st March 2022 and in the last few weeks, using our unique Emissions Factor Model, we have been allocating one renewable origin certificate to every megawatt hour supplied to our renewable customers. This robust process ensures there is no double-counting or under-allocation of certificates and to provide added confidence, this process is certified by the Carbon Trust. Once the Carbon Trust's annual audit is complete, we publish our annual fuel mix for our conventional and renewable electricity products on our website and create individual energy labels for all our renewable customers, which we distribute mid-end of September for our customers to complete their carbon reporting. 

What is an Energy Label and how can they be used 

Energy labels show the carbon emissions of every megawatt hour of renewable electricity supplied to our customers’ sites during the reporting period (1st April 2021 - 31st March 2022).  

Our Energy Labels include: 

Supply period: the label typically shows the electricity supplied with from 1st April 2021 - 31st March 2022, or a period within this if your supply commenced after 1st April 2021. 

Energy consumption: The megawatt hours consumed across your sites within the reporting period. This may include some conventional supply for customers that switched to one of our 100% renewable products part-way through the period or added any new sites on separate conventional supply contracts. 

Product fuel mix: The sources of electricity that make up the renewable electricity product supplied. For example, our Renewable Standard, Natural or Specific product.  

Scope 2 carbon emissions: All our renewable electricity supply products have zero scope 2 CO2 emissions, in accordance with the GHG Protocol Scope 2 Guidance. Carbon emissions for conventional supply may also be shown on the label.  

This will allow them to demonstrate their commitment to sustainability to their stakeholders and customers by prominently displaying it in their offices and retail locations. Additionally, it can be utilised to promote internal engagement in their net-zero goals and to help their corporate sustainability reporting, PR, and media campaigns. 

Sustainability and net zero have been pushed to the forefront of many business agendas in recent years as the world becomes more sustainability conscious to tackle climate change and achieve net zero goals. Evidencing the purchase of certified renewable electricity has been a priority for many I&C businesses as carbon reporting and carbon offsetting forms a key part of many corporate green plans. Businesses must be aware of the source of their renewable electricity therefore, when the concept of Energy Labels were introduced by the Aldersgate Group in 2014, SmartestEnergy were the first supplier in the UK to embrace this initiative and support our customers on their net zero journeys.