Businesses and consumers paying a premium for green electricity may be increasing supply company profits rather than renewable generating capacity, the UK government has admitted. Under the Renewables Obligation, suppliers have to produce a percentage of their electricity from renewable sources anyway. Some of them have been selling it on the more expensive green tariff, which is supposed to help fund more renewable generation, not that already required by law. BSj first reported this anomaly two years ago (04/06). In an announcement last month, Environment Secretary Hilary Benn said it was "increasingly diffi- cult to demonstrate that buying a renewable electricity tariff is offering additional carbon reductions compared with what suppliers are required to source to meet the Renewables Obligation".
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