Move to end 'green' tariff confusion Tariffs will have to show environmental benefits
23 July 2008
Power suppliers will soon have to do more to explain why their ‘green’ energy tariffs are environmentally friendly.
Britain’s energy regulator, Ofgem, has proposed new guidelines which it hopes will give consumers more confidence in ‘green’ energy tariffs.
Around 350,000 domestic customers in the UK have already signed up to green supply deals.
But Ofgem says many consumers are sceptical about the environmental claims made by suppliers.
New guidelines
It’s now proposing that power suppliers sign up to a new set of guidelines requiring them to prove the benefits of their green tariffs and to give more details about these tariffs to customers.
It also wants an independent scheme to be set up by the end of this year to accredit green energy deals.
Tariffs would then receive gold, silver or bronze accreditation depending on the environmental benefits they offer, so consumers could easily compare tariffs.
Environmental benefits
Ofgem chief executive Alistair Buchanan said: ‘With our revised guidelines we intend to shine a light onto suppliers’ green offerings to show the customer why a tariff is green.
‘Suppliers must tackle customers’ scepticism by providing much clearer information about their green tariffs to customers, so they can easily understand the extra environmental benefits the tariffs provide – our guidelines will help them to do that.
‘We also urge suppliers to move quickly to establish an independent verification scheme before the end of the year, and will work with them to do that.
‘We want suppliers to stop re-packaging their existing environmental activity as green immediately and to align their marketing with our guidelines by September 2008.’
Although the new guidelines and accreditation scheme are voluntary, Ofgem says it could make them compulsory if energy suppliers don’t sign up to them.
