Ofgem to rate 'green' utilities products
Published On 21 November 2007
Ofgem has announced that it is planning to give energy tariffs a green rating along similar lines to the A to F energy efficiency ratings now given to household appliances.The energy regulator claims that the ratings will be based upon how much carbon energy tariffs use and will provide consumers with an indicator of how much energy they are consuming, along with the environmental benefits of various energy packages.
According to Ofgem, the voluntary system of utilities tariffs will see deals rated based on the percentage of energy that is generated from renewable sources, with those claiming to be 'low carbon' required to provide evidence of their credentials.
Alistair Buchanan, Ofgem chief executive, said: "By cutting green confusion we are giving consumers more confidence when shopping around for an electricity deal to help cut their carbon footprint. Currently, customers find it difficult to compare the environmental benefits of the various energy deals on offer."
Mr Buchanan suggests that the new scheme will "eliminate confusion and encourage customers to seek deals that best meet their needs", boosting innovation in the utilities market and leading to a greater selection of tariffs and products.
Scheduled to launch by summer 2008, the new rating scheme has been criticised by consumer groups, who are concerned that the proposed certification system will lead to yet more confusion and are calling for independent accreditation of schemes that make 'low carbon' claims.
