Ofgem proposals on Green Tariffs are misleading says the Energy Saving Trust 
The Energy Saving Trust is not supporting Ofgem's expected proposals on Green Tariffs because:
1. They are misleading. Consumers presume that green means that the energy produced comes from a renewable source. A study commissioned by Ofgem shows that for most, 'green' in energy terms means the same thing as renewable energy. The study goes on to say that most expect all of the electricity included in the tariff to be from renewable sources. The Energy Saving Trust's own research shows that over one third of all households were interested in signing up to a green tariff, once the concept had been explained to them. In Ofgem's proposals, green can mean offsetting or giving cash to environmental charities which would not have any impact on energy sources.
2. No increase in energy from a renewable source. If the consumer buys a Green Tariff it does not result in more renewable energy being produced. The energy companies have an obligation to produce 9.1 per cent renewable energy anyway. Consumer demand would have to exceed this obligation for there to be an overall increase. But Ofgem are taking the decision to deny customers the chance to use their buying power to drive more demand for renewable energy in the long term. More customer demand would lead to more investment in renewable energy.
3. No transparency. Ofgem is proposing that the suppliers will not need to provide information about how much renewable energy is included within the individual tariffs they are selling. The suppliers are only required to make public their overall fuel mix eg renewable, nuclear, gas or coal. How can consumers know what they are buying? It is like if a supermarket was selling a range of sandwiches and on the labels for each sandwich was the overall mix of ingredients in all its sandwiches.
4. They are not independently certified. Ofgem has appointed the Energy Retail Association to appoint an independent certifier. The accreditation process should be fully independent from suppliers and overseen by the regulator.
Energy Saving Trust CEO, Philip Sellwood says: "If Ofgem's guidelines progress as proposed then green tariffs cannot make a meaningful contribution towards increased renewable energy supply in the UK. What the public needs is clear and simple information so that they can make informed choices about the energy they use. They'll end up being misled and buy something which will not have a direct impact on their carbon emissions. Welcome to Greenwash."
Sellwood adds: "The world needs to reduce CO2 emissions by up to 80 per cent by 2050 in order to avoid dangerous climate change. Personal carbon emissions - the emissions from homes and travel - account for around 43 per cent of the UK total, or around 235 million tonnes of C02 a year.
A low carbon lifestyle means using energy responsibly and efficiently - it also means choosing energy we do need from renewable, low-carbon sources. A million people each year contact the Energy Saving Trust advice line for practical help in reducing their carbon footprint. The Energy Saving Trust would not be able to advise those people to buy the Ofgem version of green tariffs as these will make no meaningful difference to whether the energy they buy in renewable or not.
Related categories: Eco-friendly Power generation
