Energy industry regulator Ofgem has extended the derogation it has given to three renewable energy suppliers in relation to the standard variable tariff (SVT) price cap.
Good Energy, Ecotricity and Green Energy UK were each granted a derogation until 31 March for SVTs where consumers have chosen a tariff that contributes to renewable generation.
Ofgem has since confirmed that all three derogations will now be in effect until 1 September, at which point the companies will need to submit further evidence to the regulator to achieve permanent derogation.
The regulator added that while it had provided the time-limited derogation, it had not assessed whether the tariffs provided good value for customers.
Responding to the extension Juliet Davenport, chief executive of Good Energy, told Utility Week the company was ready to submit its evidence.
Dale Vince, founder of Ecotricity, said:“We would have preferred this was done and dusted by now, but understand Ofgem has a lot on its plate.
“It should be straightforward, it effects a tiny proportion of the market and it’s right that people should be able to choose a genuinely green supplier – the competitive market is after all meant to be about choice.”
Doug Stewart, chief executive of Green Energy UK, added: “It is interesting that the three longest standing independent suppliers, which also happen to be green, all sought and obtained a derogation from the price cap. This indicates that both they and Ofgem recognise the true cost of supplying future energy.
“Interestingly another common thread is the loyalty angle of their customer base. They focus on retention and acquisition by providing high levels of service rather than on loss-making tariffs.
“The support of generation of green electricity and gas outside the mandatory schemes is a real expense, but also a choice that should not be denied to those consumers with green agendas.”
Pure Planet meanwhile was granted temporary directions for “alternative compliance assessment for the default tariff price cap”.
This is on the basis that the company’s non-standard charging structure means that applying the price cap would “not have been in the best interest of most of its consumers”, according to Ofgem.
This derogation will remain in effect until 31 December this year, unless otherwise revoked or amended by Ofgem.