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E.On to switch to ‘renewables-backed’ supply for commercial customers

Image: E.On.

Image: E.On.

E.On is aiming to supply over 100,000 small business customers with 100% renewables-backed electricity over the next year.

The electricity is to be sourced from E.On’s renewable generation assets, supply agreements with independent UK wind generators and the purchase of renewable electricity certificates from the likes of wind, biomass and solar sources, the supplier said.

It follows E.On switching to 100% renewables-backed electricity for its domestic customers in July, which also saw E.On match a portion of its supply with renewable energy sourced externally through methods such as Renewable Energy Guarantees of Origin (REGO) certificates.

Eligible customers, which it defines as SMEs that are fed by a non-half hourly meter and have agreed a Fixed Business Plan directly with E.On, will receive the offer when they renew or agree a new supply contract.

Fellow supplier Shell Energy made a similar pledge in March to go 100% renewable after it rebranded from First Utility.

However, Shell Energy was criticised by Good Energy, which described the use of REGOs as a “loophole”.

Michael Lewis, chief executive of E.On UK, said the climate crisis is the “defining issue of our era” and one that both domestic and commercial energy consumers are “increasingly concerned about”.

“We believe large-scale action can make significant change possible and we’re committed to setting an example for others to follow,” Lewis added.

In November, E.On signed a PPA with RWE Renewables for 892MW of offshore and onshore wind from 20 sites across the UK.

E.On's Q3 2019 results showed a 3% year-on-year drop in income however, as it completed its takeover of npower, with 4,500 jobs cut as part of a major restructuring of npower.

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