The regulator has proposed three key principles that green tariffs should follow after it found “an increasing number of tariffs that make environmental claims are uncertified”.
Under the proposals, suppliers must clearly state if a green tariff does not offer any environmental benefit other than those already paid for through levies or taxation, and must publish an annual report on how the tariffs are providing environmental benefits.
The third principle will be for the suppliers to verify where the electricity comes from.
Sarah Harrison, senior partner for sustainable development at Ofgem, said: “We believe these changes will give consumers confidence to make more informed decisions about buying tariffs based on renewable supply.”
Following consultation, Ofgem aims for the plans to be in place by 1 April 2015.