As many as nine million British households are on green tariffs, with more than half of all new deals launched by energy providers now claimed to come with environmental benefits.
However, firms are currently able to advertise their tariffs as “green” even if some of the energy they supply comes from fossil fuels, which industry figures have warned risks misleading consumers.
Suppliers can use several ways to achieve green status under the current rules, including committing to use 100% of the income from their customers to invest in developing renewable energy or by striking a deal with an existing wind farm or solar array to buy the electricity they produce.
Under a government scheme, energy firms buy certificates known as Renewable Energy Guarantees of Origin, which are designed to show consumers how much of the electricity they sell has been acquired from clean sources.
When a supplier claims that its 100% renewable energy tariff is backed in this way, it means it will match each megawatt of electricity its customers use with certificates representing the same amount of renewable energy.
However, experts have warned the system is open loopholes that risk “double counting” the UK’s renewable energy supply use or even claiming foreign renewables as its own.
The company Good Energy is one of those that has been a vocal critic of greenwash tariffs. In April this year it said energy suppliers had for some time been able to “mislead” customers who were trying to do the right thing in choosing green.
Richard Neudegg, the head of regulation at Uswitch.com, the comparison service, said: “More and more people are purchasing green tariffs but it’s been difficult for bill payers to know exactly what’s under the hood of these deals."
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