Money News
Customers and businesses looking to reduce their carbon footprint will be able to easily compare the environmental credentials of green energy deals under proposals by energy regulator, Ofgem. It's advocating that all green tariffs be awarded a rating ranging from 1-5 stars.
Green supply tariffs are contracts into which customers can enter with suppliers to obtain all or part of their electricity from renewable or potentially low carbon/carbon neutral sources of generation. They also include contracts under which suppliers can agree to invest a premium back into renewable energy or other environmental funds, or alternatively take other carbon offsetting actions.
Under Ofgem's proposals for revised guidelines the star rating scheme would apply to green tariffs offered to businesses as well as to domestic customers. The guidelines would also be expanded to cover low-carbon technologies like efficient Combined Heat and Power schemes.
Ofgem says it, along with the EST (Energy Saving Trust), will be working with the energy industry and customer groups to develop their proposals, with the aim of delivering new guidelines by September.
The EST is an independent, non-profit making organisation and acts as a bridge from government to consumers, trade, businesses, local authorities and the energy market. EST provides impartial information and advice.
To make sure the star rating scheme gives customers confidence in green energy tariffs the EST is launching a parallel consultation looking at the issues involved in setting up an independent accreditation scheme.
A key concern of the EST is to ensure that when customers buy green energy they aren't just paying for the amount of renewable energy suppliers are already required by government to buy, but are actually funding additional supplies.
Philip Sellwood, CEO of the Energy Trust, says: "Our research shows that over one third of all households are interested in signing up to a green tariff, once the concept has been explained to them. We need to make sure they get the best impartial advice to make informed choices.
"One in two people now look for our Energy Saving Recommended label when purchasing household appliances. We need to develop the same level of recognition and confidence in green tariffs so that when customers purchase green electricity they can be sure that they are making a difference."
05 June 2007 © Moneyextra.com
Our senior editor Robin Amlôt recommends you should consider taking independent financial advice before acting on any article. Please contact us for help with your individual circumstances if any assistance is required.