The way in which “inexperienced” electrical energy tariffs are offered to hundreds of thousands of households is to be reviewed by the federal government amid considerations that their environmental advantages could possibly be overstated.
Vitality corporations are capable of market offers on this means even when a number of the vitality they provide comes from fossil fuels – as a result of they offset this by sourcing renewably-sourced energy.
The federal government’s assessment will look into whether or not the system is clear sufficient and whether or not the foundations stay “match for objective”.
It mentioned 9 million UK households had been now on inexperienced tariffs, with greater than half of latest electrical energy offers launched marketed as “100% renewable” or “inexperienced”.
The federal government mentioned there have been “considerations that some are overstating how environmentally pleasant their merchandise are”.
The assessment will take a look at whether or not how a lot so-called “greenwashing” – when corporations declare to be extra environmentally-friendly than they’re – is happening within the sector.
It might imply “smarter” guidelines governing the certificates that vitality suppliers should purchase to point out that they’re sourcing sufficient renewable vitality.
The businesses may also have to provide clearer info to households about the kind of renewable vitality used – akin to wind or photo voltaic – and the place and when it was generated.
Vitality minister Anne-Marie Trevelyan mentioned: “Hundreds of thousands of UK households are selecting to make the inexperienced change and increasingly of our vitality comes from renewables.
“However I would like folks to know that after they signal as much as a inexperienced tariff, they’re investing in corporations that make a aware option to spend money on renewable vitality.”
Sue Davies, head of shopper safety coverage at shopper group Which?, mentioned: “It is good that the federal government is investigating considerations that some suppliers seem like ‘greenwashing’ their vitality tariffs, which might threat deceptive prospects.
“We imagine there must be higher readability on how renewable electrical energy is outlined and marketed.
“If the federal government concludes that companies should not being upfront and clear about their inexperienced credentials, it ought to take motion to make sure folks could make knowledgeable selections about the place to purchase their vitality from.”