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Wednesday, June 29, 2022

Energy suppliers face crackdown over misleading green tariff claims

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ENERGY suppliers pushing green tariffs that actually use fossil fuels are facing a crackdown.

Nine million households are on tariffs branded “100 per cent renewable” or “green energy”.

The Government is set to crackdown on energy suppliers pushing green tariffs that actually use fossil fuels

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The Government is set to crackdown on energy suppliers pushing green tariffs that actually use fossil fuelsCredit: Alamy

But there are fears the claims are misleading and there are calls for changes to rules.

Energy minister Anne-Marie Trevelyan has ordered a review.

She said: “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.”

Energy companies can market tariffs as green even if some of the energy they supply is from fossil fuels, which have been linked to climate change.

They do this by buying Renewable Energy Guarantees of Origin certificates, which promise a similar amount of green energy will be produced for every unit of fossil fuel burned.

But it means customers who think they have signed up for an environment-friendly supply could be using dirty electricity.

Energy companies do not have to reveal how much of their energy is based on the purchase of these certificates.

In a recent YouGov poll, nearly two thirds of customers said their tariff choice was influenced by how eco-friendly an energy supply was.

Energy minister Anne-Marie Trevelyan ordered a review as nine million homes are on 'green energy'

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Energy minister Anne-Marie Trevelyan ordered a review as nine million homes are on ‘green energy’Credit: Getty
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