Under Ofgem’s proposals, green tariffs offered to both businesses and domestic customers would be awarded a rating ranging between one and five stars. The guidelines would also be expanded to cover low-carbon technologies, like efficient combined heat and power schemes.
Ofgem said that, in conjunction with the Energy Savings Trust (EST), it will work alongside the energy industry and consumer groups to develop the proposals, with the aim of delivering new guidelines by September 2007.
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.
Ofgem said that one of the EST’s key concerns is ensuring that when customers buy green energy they are not just paying for the amount of renewable energy suppliers are already required by government to buy, but are actually funding additional supplies.
Philip Sellwood, chief executive of the EST, said: Our research shows that over one third of all households are interested in signing up to a green tariff, once the concept had been explained to them. We need to make sure they get the best impartial advice to make informed choices.
Ofgem’s chief executive, Alistair Buchanan, added: A star rating scheme will make it much easier for customers to make informed choices when shopping around for an electricity deal which will help cut their carbon footprint. By expanding the guidelines to businesses, which consume two thirds of the UK’s electricity, we are making it easier for firms to become carbon neutral.
Ian Pearson, the minister of state for climate change and environment, is supporting the proposals, as are price comparison website uSwitch.com and UK consumer group Energywatch.
