Star rating scheme should get more consumers to sign up to green energy

Ofgem’s announcement that it will be looking to introduce a star rating system for all green energy plans is warmly welcomed by uSwitch.com, the independent online comparison and switching service.

Consumer take-up of green energy plans has been very low - currently, only 200,000, less than 1% of consumers in the UK, are signed up to one. Lack of clarity and understanding may have played a big role in discouraging people from taking one of the easiest steps in the battle to cut carbon emissions.

Ann Robinson, Consumer Policy Director at uSwitch.com, says: “This is good news and will go some way to helping consumers make the right decisions about how they can join in the battle to reduce emissions. Only three in ten households feel they are doing enough to cut carbon emissions and 79% of people say that they don’t have enough information to become more energy efficient, so a simple rating system that is easy for consumers to understand will be music to their ears.

“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. It has been left up to the consumer to evaluate the relative benefits of the plans themselves.

“The star rating system should be the start of a three-pronged approach to boosting take-up of green energy in the UK. The providers also need to educate their customers about green plans and the Government should remove the 5% VAT from the plans to make them more attractive.

“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. This is all about removing the get-out clause and ensuring that everyone is able to play their part.”