Affordable and sustainable – our future focus

At E.ON, we've played a fundamental role in shaping the future of energy throughout our history - driving the transition to a cleaner, smarter energy system.

Chris Norbury

E.ON UK CEO

01/12/23

When it comes to making energy affordable and sustainable we believe there’s no clash between the two. The future of energy is helping the cleaner choice become the cheaper choice.

As a leader in this rapidly evolving market, we strive to harness our scale and innovation to make an impact that aligns with our values. Our legacy underpins that position at the forefront of the energy transition, from the moment we built our first onshore wind farm on Anglesey more than 30 years ago.

E.ON’s continued investment in the decades that followed effectively drove the UK’s renewable revolution for more than a generation. We are proud of our role in pioneering an industry where renewable power sources now regularly outperform fossil fuels.

The energy industry continues to evolve significantly, and we have changed accordingly. In 2015 we announced plans to divest our large fossil fuel generation fleet and focus instead on renewables and low carbon solutions for customers.

Then in 2019 we launched the next step in our commitment to the UK energy transition by offering 100% renewable electricity¹ tariffs as standard to our domestic customers.

With the introduction of E.ON Next in 2020 we were able to continue to offer 100% renewable electricity¹ to all of our residential and SME customers as standard and at no extra cost. Our aim was to take what was still a niche product into the mainstream. Inspiring millions of people to support the renewable transition by demonstrating that renewable electricity could still be affordable electricity. Ultimately, we wanted to make renewable energy tariffs a mass-market expectation across the industry.

We succeeded, not only by buying the physical power directly from wind farms, solar installations and biomass plants across the country, but also by purchasing Renewable Electricity Guarantee of Origin (REGO) certificates. REGOs are Government backed guarantees that ensure power comes from renewable sources and provide a return on investment to the generator, inspiring them to invest more in new clean energy sources.

This was no small investment. In 2021-22 for example the electricity we sourced from wind, solar and biomass generators around the country was enough to power more than four million average UK homes². That is billions of pounds going to reward investment in British renewable energy on behalf of our customers, all helping to drive a cleaner energy system to benefit our customers and our country.

However, as any industry evolves so do its leading businesses and their purpose, which is why we have decided to continue offering 100% renewable electricity¹ to our fixed tariff customers only.

Investing in REGOs was the right thing to do in 2019. It created a huge spike in their demand and gave buoyancy to a young market which is now thriving. However, in the search for where we can make the greatest impact, the funds we invest in REGOs can be more effectively deployed to directly support customers and the UK’s progress towards net zero.

We’re continuing to offer 100% renewable electricity¹ for all those customers joining one of our fixed tariffs. We’re also offering a range of tariffs that reflect and support people’s priorities and the lives they live, whether that is cheaper rates for overnight EV charging, donating to re-foresting schemes or getting discounts on such as solar panels, heat pumps or electric vehicle charging.

This will include products and services that give customers greater price certainty and additional sustainability, as well as enhanced UK investments into impactful projects and opportunities that increase our energy resilience, give greater opportunities to local communities and create new green collar jobs.

The Power of Progress

From supporting customers and driving the energy transition, to being consistently recognised as one of the UK’s most inclusive employers.

Find out more about who we are and what we do in The Power of Progress report.

There is a huge body of proof to support this latest change from across our business. Not least the impact we’re having around the country through direct community partnerships and investment into net zero transformation. Just take a look at our strategic energy partnership with Coventry City Council: a 15-year agreement to make the city cleaner, fairer and with a better standard of living; or our investment in bringing a geothermal energy source to the Queen’s Medical Centre in Nottingham that makes the hospital a more comfortable place for patients and staff while reducing running costs and carbon emissions across the site.

Other projects include delivering thousands of warmer homes through the GBIS insulation scheme around the country and, of course, developing our own abilities to train some of the tens of thousands of people with the green skills they need to deliver the energy infrastructure of the future – which we are already doing at our net zero skills academy in Kingswinford.

Our focus for the future will be on driving more impactful investment for the people of the UK, whether that is through provision of solar panels, heat pumps, electric vehicle charging or large-scale solar and city-wide heat networks.

To do that, we must invest more, faster, directly into the communities and households that need it most – which is exactly what we will continue to do.

Read our other blogs

11 October 2023 Blog post

How we’re driving for smarter, sustainable homes

Chris Lovatt, Chief Operating Officer of E.ON UK Solutions, shares some of the ways in which E.ON is helping customers improve the sustainability of their homes.

Exterior of E.ON's new training academy including electric van parked outside

15 August 2023 Blog post

Shaping future engineers at our net zero academy

Kingswinford, in the heart of England, plays host to E.ON’s new sustainable training academy. Here, we’re upskilling our colleagues in cleaner, greener energy solutions.

17 October 2022 Blog post

Taking it to the streets

Our buildings, towns and cities contribute significantly to climate change and to reach net zero by 2050, carbon emissions from this crucial sector must be substantially reduced.

^{1. Electricity backed by 100% renewable sources, E.ON's renewable generation assets, generation with UK generators and the purchase of renewable electricity ceritificates. The electricity supplied to your home comes from the National Grid. Fixed term contracts only. Smart meter required, where eligible. Find out more at eonnext.com/renewable}

^{2. Based on Ofgem average domestic electricty consumption of 2,700KWh per year}

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