Scottish Power is launching an ethical electricity product, called H20, which will generate funds to support the cause of energy produced from water.
The new product is likely to cost slightly more than the current Scottish Power tariff.
The gas and electricity company already supports energy produced from renewable sources such as wind and water through its Green Energy tariff. However, this will be the first time it has launched a branded green energy product in the market.
Scottish Power’s Green Energy tariff adds a fixed daily contribution of 2.74p to the standard electricity prices, which is then donated to its Green Energy Fund. The fund supports projects such as wind farm installations.
The energy company has not revealed any plans to back the launch with an advertising campaign.
Rival npower launched a similar product two years ago, called Juice. Npower teamed up with environmental lobby Greenpeace to launch Juice (MW August 2, 2001).
Juice was claimed to be the first of its kind, generating electricity from on-shore wind power and hydro-electric sources.
The launch was supported by an international consumer campaign by The Body Shop and Greenpeace to raise awareness of the environmental impact of global warming.