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Industry gives thumbs-up to Ofgem green tariff rules

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New rules from energy regulator, Ofgem, have created a stricter hold on energy companies who sell green tariffs, asking them to prove the environmental benefits.

The rules, which went live today, come in response to the worries Ofgem vocalised about the consumer’s difficulty in differentiating between genuine green tariffs and those that are not environmentally friendly.

They were brought in as part of Ofgem’s Retail Market Review, which is aiming to create a fair electricity market for consumers.

Companies now must make it known if their green tariff is actually for a service that is environmentally beneficial  and must provide evidence of the source of electricity through special certificates.

They must also prove that they have invested time and money from the green tariffs into renewables.

Good Energy chief executive Juliet Davenport welcomed the new rules.

She said: “People buy a green tariff because they believe they are making a difference and the company supplying the electricity is really dedicated to renewable energy. The rules should prevent suppliers over-stating their ‘greenness’ or positioning themselves as green when they are getting most of their power from coal or gas. That’s not what the customer has in mind when they choose a green tariff.”

Source: BPVA

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