8 March 2007
All companies want to be seen as green these days but several energy suppliers are to be investigated by industry regulator Ofgem, following accusations of misleading potential customers in order to gain new business.
Ofgem told the Independent that it had been shown evidence that customers were being misled about how much they should be paying for their environmentally-friendly energy and that it would launch an investigation into several of Britain's biggest energy companies.
Green tariffs which promote the use of renewable energy sources like wind, solar and wave energy are being sold as a new source of additional power, but companies have been found to be simply "repackaging" the renewable energy supply under the government's Renewable Obligations Order introduced in 2002 - and often at a premium price.
One such tariff is the npower Juice tariff which claims: "As a customer, npower matches every unit of normal electricity that you use and feeds the same amount, generated from renewable sources, into the electricity network."
EDF is another company which states on its website: "EDF pledges to match the electricity you use with the equivalent amount of electricity from renewable sources; wind, landfill gas and small-scale hydro."
Speaking to the Independent, a spokesman for Ofgem said: "Suppliers really must demonstrate that if they are marketing these tariffs they are doing something in addition to the Renewables Obligation.
Making small changes to your gas and electricity use can help save the planet and save you money too. Read tips on how to be more energy efficientRead tips on energy efficiency and see if you can Save by switching your gas and electricity supplier by using uSwitch.com's free and impartial comparison and switching service.