Friday 27 June 2014

Ofgem calls for clarity over green energy tariffs

Energy regulator Ofgem is calling on suppliers to improve transparency about what green tariffs offer.

It wants power firms to give better evidence they are supplying renewable energy and be clearer about whether or not green energy tariffs provide environmental benefits.

Ofgem developed a voluntary set of Green Supply Guidelines in 2009 and implemented it through a certification scheme. However it believes an increasing number of tariffs are uncertified, “leaving the majority of consumers unable to distinguish between those tariffs with or without environmental benefits”.

Suppliers should publish an annual report on how they are providing environmental benefits or make it clear to consumers if it doesn’t, Ofgem suggests. It is also proposing them to show there are environmental benefits due to a consumer choosing a tariff and not solely as a result of subsidies or supplier obligations.

They must also have evidence on where the electricity supplied in a tariff comes from, the regulator added.

Sarah Harrison, Senior Partner for Sustainable Development at Ofgem said: “We believe these changes will give consumers confidence to make more informed decisions about buying tariffs based on renewable supply.”

Yesterday the watchdog also announced a full investigation into the energy market to ensure there are no barriers to effective competition.