So-called green tariffs have been hitting the headlines recently, as a decision is awaited from Ofgem on its consultation Improving Consumer Protection in the Green and Renewable Energy Offers Market.
I think it’s pretty tricky for customers to know if they have found a truly renewable energy supplier. There are a lot of ‘green’ claims out there, with varying degrees of authenticity, but what does green really look like? And for the record, let me tell you that green is not coal, oil or gas. If you’re sufficiently clued up, then individual companies’ fuel mix disclosures, required from suppliers as part of their licence obligations, are a good place to start.
These figures are a matter of public record and interestingly, our research into this data suggests that there aren’t many suppliers who can truly lay claim to offering a 100 per cent renewable electricity fuel mix.
However, you have to be a bit techy to delve this deep into these murky green waters, and we don’t think the onus should be on consumers to do all the legwork. Customers shouldn’t have to put a lot of effort into working out what a green tariff does and does not include.
Working it all out becomes even more challenging if you consider that the data shows some of the bigger generators of renewable electricity are not necessarily the top performers when it comes to overall grams of CO2 per kilowatt hour measurements.
It’s for these reasons that I fully support Ofgem’s final proposals to bring some transparency, consistency and clarity for domestic consumers. We always welcome steps to help make the market simpler and fairer for consumers, and it’s only right that customers should have reassurance that if they are seeking a green tariff, that is exactly what they will get.
This is equally as true for business customers. We know that businesses are looking for ways to reduce their carbon footprints and are exploring the benefits of buying electricity from renewable sources, but they are likely to be faced with some difficulties when it comes to spotting a tariff that’s truly green. We think they deserve the same transparency.
We have always sought to be as open as possible and have been publishing our fuel mix figures and green credentials on our website for a number of years. Our data is verified annually by third party auditors. We think all suppliers should be doing the same.
There’s been some discussion on ‘additionality’ as part of the ‘is it green?’ debate, and it’s important to recognise that this is not just about purchasing certificates or buying carbon offsets. It’s about creating genuine green tariffs, based on electricity generated from renewables. This requires an open, competitive market where these can thrive.
It’s about time all consumers were able to make proper, informed choices and have the reassurance that they are getting a tariff that’s truly green – and does what it says on the tin
Juliet Davenport, chief executive, Good Energy