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How green is your power company? How to check and find the best electricity deal for you

Rebekkah Wilde is switching providers after Shell's controversial acquisition of Powershop. (Supplied)

Like many Australians, Rebekkah Wilde has been with the same energy provider for years – one she chose because of its focus on green energy. 

But this year she's switching, and it's not because she found a huge new discount.

The 31-year-old rents with her husband and three children in Cardinia Shire about an hour from Melbourne's CBD.

Their energy provider Powershop is being purchased by fossil fuel and petrochemical giant Shell.

"It's so completely the opposite of what we first signed up to Powershop for," Ms Wilde said.

"We've gone from a smaller local [company] and caring about people and the planet, to now some massive global conglomeration.

"It just doesn't quite gel."

It's a timely reminder for consumers — just like you need to check in to make sure you're getting the best power price, you need to keep tabs on your provider's environmental footprint too.

Rebekkah Wilde said finding a new green energy retailer had been difficult. (Supplied)

What makes an electricity company 'green'?

Electricity providers can claim a few different things to highlight their climate awareness.

Some will advertise that they are actively investing in sustainable energy sources such as wind, solar and hydropower.

Others will allow customers to go carbon neutral (sometimes at no extra cost), by purchasing carbon offsets to cancel out their emissions.

Some also allow consumers to contribute to the federal government's GreenPower initiative, which invests in renewable energy.

Companies can also receive a Climate Active certification from the federal government, which recognises their organisation as having net zero emissions.

What happened with Powershop?

Powershop calls itself "Australia's greenest energy provider" and is known for clean energy credentials such as its Climate Active certification.

Ms Wilde said she initially joined Powershop because the company was focused on being carbon neutral and had invested in renewable energy.

"They were just different to other bigger companies in that they seemed to actually care," she said.

"They had a mission that they were carrying out, and I was really on board with that side of things.

Shell, a major global producer and retailer of oil and gas, announced in November that it was buying Powershop's parent company Meridian Energy Australia Group for an undisclosed price.

This led to allegations of greenwashing, which is when companies mislead consumers about how environmentally friendly they are.

Shell says its move to sell power to Australian households is part of its goal of becoming "a leading provider of clean power-as-a-service".

In Australia, Shell also owns the Gangarri solar plant being built in Queensland's Western Downs region, which it says will power 50,000 homes.

The company announced earlier this month that its acquisition of Powershop had been approved and finalised, and while Shell says the deal will help it deliver "cleaner energy solutions" through access to renewables, some Powershop customers aren't convinced.

Shell says its Gangarri project will save 300,000 tonnes of emissions per year. (Supplied: Shell)

Data given to ABC News shows Powershop likely lost 6,000 customers in the first three weeks following Shell's takeover announcement.

Other energy retailers such as Cooperative Power have flagged a sharp rise in people switching from Powershop.

So how do you find a green energy retailer?

Consumers can do a few things to check if energy providers are backing up their environmental claims, according to Jared Mullane, energy editor at comparison site Canstar Blue.

This includes checking whether the retailer is certified by Climate Active, which works in partnership with the Australian Government.

"Also check, is the company actively investing in sustainable energy sources? If it's owned by a larger parent company, have a look into what their green investments are," he said.

Mr Mullane says consumers should look closely at energy fact sheets provided by retailers, which include details of rates and any green energy or carbon neutral options.

He also says to be wary of the popular misconception that consumers can purchase completely green electricity for their homes.

Wait, you can't buy 100 per cent green energy for your home?

Nope, unless your home is completely off the grid and self-sufficient.

"Because all electricity is fed into the same grid regardless of how it's generated, there's no real way of knowing if the power being supplied to your home comes directly from renewables," Mr Mullane said.

"The real choice you make when you're choosing an energy provider – it's not about where the energy comes from as such, it's more about where your money goes."

The federal government's GreenPower initiative allows consumers to contribute to investments in renewable energy.

This usually comes at an additional cost, but ends up feeding more renewable sources into the grid and helps to reduce overall power prices.

Shell has been accused of greenwashing over its acquisition of Powershop. (Supplied: Shell)

A new Green Electricity Guide is coming

Powershop was one of only two retailers which received a five-star rating in the 2018 edition of Greenpeace's Green Electricity Guide.

The guide ranks the green energy credentials of energy companies using a variety of data, including reporting from Australia's Clean Energy Regulator and public statements and survey responses from the energy retailers themselves.

Greenpeace is preparing to release an updated guide on February 8 and Powershop can expect to lose its perfect rating, according to Greenpeace senior campaigner Glenn Walker.

"It's really clear that consumers care increasingly about greenwashing from companies, and where their money is going," he said.

The 2022 edition of the Green Electricity Guide will also have criteria around the extraction of fossil fuels, including by the parent companies of energy retailers.

"We've gone to great effort to understand the ownership of electricity retailers and provide that information to consumers about whether the company, or the company that owns the retailer, is a heavy climate polluter themselves," Mr Walker said.

Glenn Walker says the Green Electricity Guide is an independent assessment of retailers. (Supplied: Greenpeace)

Consumers hold substantial power

Mr Walker said there was now a "race to the top" among companies to become Australia's cleanest and greenest energy provider, so it was important consumers have the right information.

"Consumers have a lot of power to help change the system and get coal out of our electricity system, so we get a cleaner and greener system with less impact on the environment," he said.

For Ms Wilde, who is switching to a new energy provider, dealing with energy companies remains a daunting but important process.

"The whole industry I think is a mess. It's really hard to get clear, straight information," she said.

"There are way too many retailers out there, and there seems to be a new one being created every other day.

"A lot of places will offer carbon offsetting, but it's not enough to offset the damage you've done, you need to also be reducing the damage in the first place."

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