Dong Energy said it will cover additional costs associated with “going green” so that businesses can access renewable electricity and achieve sustainability ambitions.
The move is being made to allow companies to do so without commercial disadvantage.
It comes after the UK Government last year announced the Climate Change Levy (CCL) would be phased out.
Jeff Whittingham, managing director of DONG Energy Sales, said: “We are taking this bold step because we believe that all businesses should have access to renewable electricity supply without paying a premium.
“If we are to embrace a truly sustainable energy future, we will need to take an integrated and forward-thinking approach to energy. One part of this is putting renewable electricity on an equal footing with traditional ‘brown energy’ sources.”
In 2001, the Government introduced the CCL, a tax designed to encourage businesses to use less energy. Businesses that purchased renewable electricity could gain exemption from the tax by purchasing Levy Exemption Certificates (LECs).
This drove a high demand for renewable supply in the UK and resulted in renewable electricity selling at a similar or lower price to brown electricity.
Dong Energy said demand for renewable electricity has once again become a sustainability choice for businesses after the Government’s decision last year to phase out the exemption.
Dong said all business should have access to renewable electricity supply without incurring additional cost.
Whittingham added:”We are making this announcement at a time of tight budgets and fierce competition for businesses of all types and sizes whoa re under growing pressure to reduce carbon emissions and develop a sustainable business.
“It is also a time when cost is key and the additional financial burden of buying renewable energy might be difficult for some companies to justify on a commercial basis.”