Ofgem releases controversial green energy guidelines

The UK’s energy regulator has issued guidelines for the marketing of green energy tariffs, following claims that some suppliers are misleading customers over their eco-credentials.

As well as releasing the guidelines, Ofgem called for independent accreditation of green energy tariffs to ‘reduce customer confusion and rebuild trust’.

Under the proposed guidelines, energy providers will only be allowed to sell green tariffs if the electricity sold on the tariffs is extra to the renewable energy that all suppliers are legally obliged to produce.

The ‘big six’ energy suppliers and niche green provider Good Energy, have already pledged support for the guidelines.

Ofgem welcomed their involvement, and issued a statement saying it has “asked them to start work immediately on setting up an accreditation scheme that will enable householders and small business customers to easily compare green offerings based on the carbon emissions they reduce.”

The scheme is set to be up and running by the summer.

However, green energy provider Ecotricity said it will not sign up to the guidelines whilst Ofgem allows carbon offsetting to be counted as part of a green energy tariff.

Ecotricity managing director Dale Vince said: “In these guidelines Ofgem is accrediting everything you can imagine except the thing that really counts – green electricity.

“The UK currently gets less than five per cent of its electricity from renewable sources.

“We need to increase this ten-fold – 50 per cent in the next 20 years.

“Green tariffs and consumer choice of green tariffs – people power – could play a crucial role in helping us reach these targets.”