6 June 2007
Energy regulator Ofgem is to introduce a new star rating scheme for all green energy plans to help consumers identify which suppliers genuinely are helping the environment.
Ofgem's move comes in direct response to criticism from the National Consumer Council, which recently suggested that many of the so-called eco-tariffs being offered by some suppliers were significantly lacking in green credentials.
An independent analysis recently showed that most suppliers were doing little more than meeting the legal requirement for sustainable energy and that even the best tariff only cut a typical household's carbon dioxide emissions by around 6%, reports the Guardian.
As well as identifying which is the most environmentally-conscious energy supplier, it is hoped the star rating scheme will encourage suppliers to become more active when it comes to creating green energy in an effort to attract new customers.
The independent price comparison website uSwitch.com welcomed the move, which it predicted would get more consumers to sign up to green energy plans.
Ann Robinson, Consumer Policy Director at uSwitch.com, commented: "At the moment there is a complete lack of clarity over what constitutes 'green energy'.
"Consumers have quickly got to grips with the significance of reducing energy usage and improving the efficiency of their homes, but trying to comprehend why certain electricity tariffs are greener than others is a minefield - there are no benchmarks or standards."
Ms Robinson went on to state that the star rating system was actually the beginning of a "three-pronged approach" by the government to help bolster the numbers of consumers choosing green energy.
The success of green energy tariffs largely depended on whether consumers signed up to them or not, explained Ms Robinson, adding: "Energy companies are obligated to provide a certain amount of renewable energy each year and they will only ever continue to do the bare minimum if consumers continue to snub green plans."