Understanding REGOs and their
role in Public Sector
Decarbonisation

When it comes to renewable energy, the term REGO often comes up, but what does it actually mean, and why does it matter for schools, councils, NHS trusts, and other public sector organisations?

In this article, we attempt to “de-mystify” REGOs and in simple terms outline their benefits for public sector sustainability reporting.  We will also explain the credentials of the REGO product available via West Mercia Energy to our public sector customers and how providing a high-quality REGO product supports our “Use Cleaner Use Less” campaign.

What is a REGO?

REGO stands for Renewable Energy Guarantees of Origin. A REGO certificate proves that a certain amount of electricity has been generated from renewable sources such as wind, solar, or hydro.

When a supplier buys REGOs to match the electricity used by their customers, it allows those customers to report that their electricity consumption has been backed by renewable generation.

Why Are REGOs Important for the Public Sector?

For public sector organisations working towards net zero targets, REGOs play an important role in sustainability reporting.

• Scope 2 emissions reporting – Under the Greenhouse Gas (GHG) Protocol, organisations must report emissions from purchased electricity. With REGO-backed electricity, these can be reported as zero carbon under the “market-based” method. This also applied to Streamlined Energy Carbon Reports (SECR) as produced by WME.
• Demonstrating commitment – For schools, local authorities, NHS trusts, and blue light services, REGOs show stakeholders, staff, and communities that renewable energy is being prioritised.
• Supporting UK renewables – REGOs help to create demand for renewable electricity, supporting the growth of clean energy generation across the UK.

Not All REGO Products Are the Same

While all REGOs certify renewable generation, the way they are sourced can differ:

• Some suppliers simply purchase REGOs from the wholesale market to badge electricity as renewable. This approach is compliant but can lack transparency about the origin of the electricity.
• At WME, we take a different approach. Through our partnership with npower Business Solutions, our “UK Pure Plus” REGO product is sourced from generators with which npower has a direct contractual relationship, often through a Power Purchase Agreement (PPA).

This means:

• Increased traceability of where your renewable electricity is coming from
• Greater assurance that your REGO-backed electricity genuinely supports UK renewable generation

Even better, the npower scheme is independently accredited, ensuring the scheme is being correctly administered.

The Changing Cost of REGOs

The cost of REGOs has changed significantly over the last five years:

• 2018–2019: REGO prices were relatively low due to oversupply – At this point, 85% of WME customers opted for REGO backed electricity.
• 2020–2021: Prices rose sharply as demand for renewable-backed electricity increased, driven by corporate and public sector net zero commitments.
• 2022–2023: Prices remained elevated during the energy market crisis – WME saw a dramatic drop in the number of customers opting for REGO backed electricity
• 2024 onwards: REGO costs have reduced again, currently sitting at relatively low levels compared to recent highs.

This fluctuation reflects the role REGOs play in supporting renewable generation, creating financial value for generators and helping to fund new projects.

Key Benefits of WME’s REGO Product

For public sector organisations, WME’s REGO-backed electricity offers:

• Zero carbon reporting under Scope 2 (market-based method)
• Compliant, transparent sourcing via npower’s contractual relationships with renewable generators
• Contribution to UK renewable generation, not just certificate trading
• Alignment with public sector sustainability commitments and net zero strategies

In Summary

REGOs are a simple but powerful tool for the public sector to demonstrate renewable energy use and reduce reported emissions. While any REGO-backed supply allows zero carbon Scope 2 reporting, WME’s approach goes further by ensuring REGOs are sourced with traceability and direct links to renewable generators.

By choosing WME, your organisation not only benefits from compliant and transparent procurement but also plays a stronger role in supporting the UK’s renewable energy future.