Government to review energy tariffs amid concerns of 'greenwashing' by suppliers

Date:
Fri, 27 Aug 2021 18:24:05 +0000

Description:
Some energy providers may be exaggerating the eco-friendliness of their 'green' products

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The government is to begin a review into how energy suppliers are marketing green energy tariffs to consumers, as there are concerns some are overstating their environmental benefits.

Around nine million UK households are now using electricity tariffs that have been marketed as green or with 100% renewable energy. However, there have
been claims by some suppliers that consumers dont truly understand what constitutes a green tariff, and ultimately how clean they actually are can be misleading.

As such, the governments review will aim to crack down on this by assessing how clear the current system is for defining green tariffs and whether or not it remains fit for purpose. Reduce your energy bills: See the best deals in your area now How the green tariff system currently works

At present, energy suppliers can offer green tariffs even if some of the energy used in them comes from fossil fuels providing their use is offset against the purchase of certificates called Renewable Energy Guarantees of Origin or REGOs.

REGOs are issued by the energy regulator Ofgem to firms producing renewables for every megawatt hour of electricity they create. But these firms can then sell this clean energy and the REGOs separately for suppliers to then buy up. This means that if theres a surplus of the certificates which can happen
when wholesale energy prices are low - suppliers have free reign to purchase them and further offset their use of fossil fuels on the tariffs they offer
to consumers.

While it can be argued that the purchase of REGOs from producers ultimately does help reduce carbon levels as it supports further green energy
production, the issue here is that the current system allows suppliers to
make tariffs appear almost completely green, even if they still include
fossil fuels. How the system could change

The government says it will explore options with its review to change the system in a number of ways. These include: Making the distribution of REGOs smarter. Making suppliers provide clearer information to households about their green tariffs, including the type of renewable energy used (such as
wind or solar), where the renewable power was generated and when. Introducing a regulatory framework for third-party intermediaries in the retail energy market for the promotion and distribution of green tariffs.

Its hoped this will make it easier for consumers to know for sure that the clean energy theyre paying for is truly coming from renewables and that suppliers are being transparent with them about their deals.

The Minister of State for Energy and Clean Growth, Anne-Marie Trevelyan, commented on this stating: "Millions of UK households are choosing to make
the green switch and more and more of our energy comes from renewables. But I want people to know that when they sign up to a green tariff, they are investing in companies that make a conscious choice to invest in renewable energy.

"Part of that is ensuring companies are being as transparent as possible on where their power comes from. That way, every family in Britain can rest assured their choices are helping to contribute to our world-leading target
of eliminating our contribution to climate change by 2050." What consumers
can do now to get a green tariff

The consultation for the review will close in December 2021, so any new rules or regulations on tariff greenwashing wont come into effect for a while yet. But, there are some things you can do now to help get a new energy tariff
that offers the green credentials you really want.

Firstly, you could simply contact your current provider and ask about their existing tariffs that include renewables, but be sure to get them to explain the fuel mix in full - and if possible which sources they use.

Alternatively, you can run an online energy comparison to review the markets and see what the best energy deals are near you at the moment that include renewable energy. This approach is useful because you can see the different types of green energy deals on offer for you to then review and again check things like the fuel mix.

On top of this, an online energy comparison service can also tell you who the best energy suppliers are right now in terms of other important aspects like customer service. Plus, you can also see how much you could save by switching to a newer deal, which in many cases can be hundreds of pounds, even on green tariffs.

Find the best energy deal for your home

TechRadar has partnered with GoCompare to help you find the best energy deals in your area. Our energy comparison tool takes less than five minutes to use, and could save you hundreds on your energy bills. Save money now



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Link to news story: https://www.techradar.com/news/government-to-review-energy-tariffs-amid-concer ns-of-greenwashing-by-suppliers/


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