SimplySwitch: Ofgem proposes new green energy rating scheme

A new scheme has been proposed by Ofgem that would see energy tariffs given a green rating based on how much carbon they generate.

The energy regulator said that the proposals would work in a similar way to the A to F energy efficiency rating displayed on household appliances. Ratings would also be based on the percentage of energy generated from renewable sources. Ofgem would like to see the certification system up and running by summer 2008.

Karen Darby, founder of the price comparison service, SimplySwitch.com, comments: “Green energy is really a grey area at the moment, so we welcome any move that makes it easier for the public to understand. Lots of energy companies play the ‘green card’ when trying to win customers. An independent rating system is exactly what’s needed to give consumers a more objective view.

“While Britain is very aware of green issues, recent research by SimplySwitch.com shows that ‘green attitudes’ aren’t yet translating into action when it comes to choosing energy providers. While over two thirds of Britons claim that being 'green' is important, only 16% even consider switching to a green energy tariff. Price remains the biggest motivator for switching energy suppliers, with ‘customer service’ in second place.

"The Government has stringent renewable energy targets for power companies. However, until demand for green energy rises above these levels, environmentally friendly tariffs won’t come to the foreground. At the moment, price motivates Britain more than ‘greenness’, so it would be good to see the Government reduce tax on renewable energy in order to increase demand for the product.”