Customers ‘confused’ by green claims
If you have chosen a power retailer because you like the idea of the ‘‘green electricity’’ it advertises, you may be in for a nasty surprise.
A power company that promotes itself as the environmentally friendly choice is delivering just the same electricity as any other brand in the market.
It’s something that Steve O’Connor, chief executive of power firm Flick, says many people do not understand.
He said customers were being misled by other providers’ suggestions they could get ‘‘clean, green’’ energy to their doors, brands promoting their ‘‘green’’ credentials and using the word ‘‘renewables’’ to give the impression of clean generation, when some renewable power, such as geothermal, still emitted carbon.
‘‘For too long, Kiwis have been confused that because they are with a company that generates electricity from renewables, that they’re using cleaner electricity at their house,’’ O’Connor said.
‘‘The truth is that our national power supply is like a pot of vegetable soup. You get a mix of whatever is in the pot when you take your serving.
‘‘Being the customer of a ‘green retailer’ does not mean your power consumption is any more sustainable than the next person’s.’’
He said electricity was one of the few industries where it was impossible to check where a single unit went.
During times when renewable power sources were insufficient to generate the power needed, thermal electricity would be added to the mix for all customers, regardless of which retailer they were with.
Jessica Wilson, head of research at Consumer NZ, said 33 per cent of consumers told its surveys they considered a company’s efforts to reduce carbon emissions when they chose a retailer.
‘‘Opting for a company that promotes its renewable energy generation doesn’t mean the electricity you get is any greener than your neighbour’s.
‘‘The mix of power from renewable and non-renewable sources that’s fed into the grid – and that ends up at your house – depends on what’s being generated at any given point. Most of our electricity comes from hydro but non-renewables typically play a bigger role in dry years or if hydro plants are out of action.’’
Julian Smith, chief customer officer of Meridian Energy, the country’s largest generator, said it only generated renewable power.
He said it was unfair to say that people did not understand what made up their power supply.
‘‘The knowledge of a consumer varies depending on their own interest and engagement with their power account,’’ he said.
‘‘Some customers are more engaged than others. Whether you’re looking at your home’s demand profile on your phone and buying your power in advance, or purchasing your power directly from the wholesale market, or if you just ‘set and forget’ with a standard tariff, there’s choice and variety in the market and it shows consumers know and are making choices.
‘‘It is true that you can’t track the green electron to your door, but at any one time consumers do benefit from largely renewable generation given that renewables deliver on average around 85 per cent of our electricity. That’s a pretty credible place to be.’’
He said the firm’s own research showed many customers who chose Meridian did so because they valued its commitment to only generating from wind, water and solar.