When deregulation began, environmentalists feared the result would be negative for the environment. Competition supposedly means cheaper prices, and cheaper prices would surely encourage higher consumption and the production of more greenhouse gases. In practice, the opposite seems to be happening. Energy efficiency and renewable energy are playing a key marketing role for energy companies anxious to appeal to every consumer, and green power is being given the hard sell. For the first time consumers are being offered a choice between 'conventional energy' and 'green energy'.
Green energy is generated without burning fossil fuels such as coal, oil or natural gas.
It comes from hydro plants, solar panels, wind power or tapping the methane from waste dumps. It allows consumers to contribute directly and painlessly to supporting renewable energy production through their electricity bills. To be SEDA-accredited, a Green Power retail product must support the supply of electricity from renewable energy sources to the national grid. Three quarters of Australia's population now has access to Green Power products. The program was originally confined to eight retailers in NSW and Victoria but attracted so much interest that it was recently expanded to retailers from other states.