UK govt to review green energy tariffs
By Frank Prenesti
Date: Monday 11 Jul 2022
(Sharecast News) - The UK government has started a probe into renewable energy tariffs over concerns that providers are overstating environmental benefits.
As more people switch to so-called "green" energy deals, the government said it would review how the sector markets these tariffs to consumers. Nine million households are on contracts branded "100% renewable".
However, industry figures have expressed concerns that claims are exaggerated - known as "greenwashing".
However, firms can advertise tariffs as "green" even if some of the energy they supply comes from fossil fuels, which industry figures have warned risks misleading consumers.
Suppliers can use several ways to achieve green status under the current rules, including through committing to use 100% of the income from their customers to invest in developing renewable energy or by striking a deal with an existing windfarm or solar array to buy the electricity they produce.
Nigel Pocklington, chief executive of Good Energy, said: "We believe this is one of the biggest consumer scandals in history, so to see the government sit up and take notice is gratifying.
"But it is vitally important that we get the crackdown right so that green tariffs actually support renewables in a meaningful way... We cannot tackle the climate crisis if people who think they are doing their part are being misled."
Energy companies are not compelled to reveal how much of their energy is based on the purchase of certificates versus those supplying electricity directly from renewable sources such as wind farms.
Options being explored include looking at whether the system around these certificates needs to be smarter, as well as whether suppliers need to provide clearer information to households about their green tariffs.
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