Climate and student-budget friendly energy: Is it possible?

23rd September 2025

It’s that time of year when students start choosing their energy providers. Most of the time, the choice feels straightforward – just go with whoever is cheapest. But there’s another factor we often overlook: how ethical is the energy we’re paying for?

As students, we can make a real difference to our futures, our children’s futures by tapping a few buttons and changing our energy providers. While it may seem that living in accommodation with bills included exempts you from these concerns, the issue is likely to become increasingly relevant as the climate crisis intensifies. As we transition into adulthood and begin managing our own properties, making informed decisions about energy use and sustainability will become an unavoidable responsibility.

Many energy companies have hidden costs and try to keep quiet about their fuel mixes, so DU Think Tank President, Ollie Sherwood has looked into the most popular, affordable, and sustainable energy companies to see whether students really can find an option that balances cost with climate responsibility.

How much energy do students actually use?

Your average student uses:

• 600 kWh of electricity per year

• 2,000 kWh of gas per year

With British Gas – one of the UK’s biggest (and likely most well-known due to their bizarre advertisements) providers, covering 23.1% of customer accounts – your average student would pay £600.63 per year. While that might not sound too bad (especially compared to Durham rent), British Gas doesn’t score highly on ethics. Only 20% of its energy comes from renewable sources, and its biggest contributor is natural gas (39%), a major driver of carbon emissions. Whilst affordable, it’s not particularly climate-friendly.

Octopus Energy – Affordable and cleaner

Octopus Energy offers students almost the exact same yearly cost as British gas – £604.60 – but the difference in sustainability is huge. Around 84.8% of their energy is renewable, and most of the rest is nuclear power.

While nuclear energy isn’t perfect, it’s still carbon-neutral and far less damaging to the planet than fossil fuels such as gas or coal. In other words, Octopus energy demonstrates that students don’t have to choose between saving money and acting ethically. It seems that a large percentage of the population has noticed this, with Octopus energy being the largest energy provider in the country, providing 23.7% of the country’s energy. However, of the four providers DUTT investigated, this is the most expensive option. Perhaps a price you have to be willing to pay to keep world temperatures down!

OutFox the Market – Cheap, but at what cost?

OutFox the Market certainly lives up to its name, offering one of the cheapest deals for students at just £560.64 per year. On the surface, it looks like a bargain.

But there are a few catches:

• Energy mix: While around 40% of their energy is renewable (double that of British gas), they still rely heavily on natural gas (39.3%), which has serious environmental downsides.

• Hidden fees: OutFox is also known for charging hefty exit fees of up to £150 if you want to leave your contract early, something many final year students may be doing.

  
  

So, while the low price might be tempting, the reliance on fossil fuels and the risk of hidden charges make OutFox the Market a cheap, but flawed choice for students, particularly those going into their final year of study.

Fuse Energy – Green and cheap!

Fuse Energy is a newer company that’s been gaining attention for its commitment to genuine sustainability. Fuse energy have publicly criticised other providers for “greenwashing” – claiming to be 100% renewable while relying on non-renewable energy and just buying certificates to say otherwise.

For students, Fuse is cheaper option at £567.24 per year, which is around £30 less than both British Gas and Octopus- money that can go a long way when put in a Government ISA (more on that in other articles).

Fuse’s approach to sustainability is also different. Instead of relying on questionable certificates (such as REGOs), they invest directly into clean energy infrastructure and green hydrogen projects. As a result, their waste output is incredibly low – just 0.0006 kWh of high-level radioactive waste per unit of energy produced.

Founded in 2022 by former Revolut executives Alan Chang and Charles Orr – executives who successfully implemented ‘RevForest’ (a partnership used to plant trees with the spare funds from rounded up payments) – Fuse has put transparency and climate action at the heart of its mission. For these reasons, DU Think Tank recommends Fuse for students, an ethical, affordable option.

Why green energy

Some of you may have flicked through this article, seen the cheapest price, and decided ‘That’s my provider!’. Despite this, DUTT really encourages you to pick a green energy provider.

The Intergovernmental Panel on Climate Change (IPCC) asserted in its 2022 reports that achieving net-zero CO₂ emissions by 2050 is critical to limiting global warming to 1.5 °C. Exceeding the 1.5 °C threshold risks irreversible harm in the form of: sea-level rise, ecosystem loss (over 1.5°C temperature increase would lead to Coral reefs declining by up to 90%) and crop yields declining, with drought risk increasing dramatically in areas such as Southern Africa and South America if net-zero is not reached.

Environmental scientists stress that every fraction of a degree counts, thus, picking a green energy provider is making an investment in your own future, as well as your friends and your families.  

The bottom line

If you’re choosing an energy provider this year:

• Avoid British Gas – not climate, or bank account friendly.

• Octopus Energy – the most expensive, but the most renewable.

• Outfox The Market – the cheapest, but less green.

• Fuse energy – an affordable provider with a mission for carbon reduction.

Whichever you choose, make sure to lock in a fixed-rate plan soon – the energy price cap rises on 1st October 2025.

— Ollie Sherwood