Ofgem has recently launched the ‘Green Energy Certified’ label with the aim of reducing consumer confusion over environmentally friendly energy tariffs. It is hoped that the introduction of this scheme will also enable consumers in making an informed decision in supporting energy companies that go further in reducing their emissions. The addition of this level of clarity will help consumers decide on a suitable supplier when they compare energy prices and look to reduce their carbon footprint.
By providing households and small businesses with a level of reassurance and clarity, regarding the energy tariff that they are on or are about to choose, should help consumers in choosing a tariff that will actually help them to reduce their greenhouse emissions. Although energy providers are accountable as to where their energy sources are from, the new scheme will see that they have to demonstrate that their tariffs are in addition to their existing obligations to a panel of independent experts.
However, not everyone is happy with this new measure, in particular Dale Vince founder of the renewable energy company Ecotricity:
“Ofgem’s new ‘rules’ set an artificial standard of what green electricity really is. If suppliers want to plant trees or look after birds, I’m all for that but not under the guise of green electricity. Consumers just want to be sure of two things: where is my green energy coming from, and what good will my bill bring? And both of these are quick and simple to verify.”
Under current government requirements energy companies must produce 10% of their energy from renewable sources however, a ‘green electricity’ tariff must now mean that energy companies go beyond this target. However, this ‘extra mile’ could potentially mean that energy supplier’s off-set their carbon emissions into community schemes; this could potentially will mislead people into thinking that their own carbon footprint is being reduced, when in actual fact they are simply being passed on elsewhere.
