only search CAP

Green or renewable tariffs are electricity supply contracts that offer to reduce the environmental impact of electricity production. In 2007 the 'big six' regional energy suppliers offered domestic customers a total of ten green tariff products. However, as our report shows, these tariffs have contributed almost nothing to the building of new renewable generation or to the profitability of installed capacity.

This 'market for lemons' prompted the Government's regulator Ofgem to issue new guidance and a new definition of what it is to be a green tariff. This is the guidance: Ofgem - Final green supply guidelines proposals (February 2009).

Using this guidance the electricity supply industry are currently developing a new accreditation scheme due for release in early-2010. We expect most current green tariffs will be replaced but as the code is voluntary not all will change.

Briefing Report

Green Tariffs: Building Renewables? explores how greater carbon accountability can rebuild trust to provide confidence for future renewable regimes, subsidies and consumer choices. This report is based on draft guideline proposals (Ofgem: Green supply proposals - July 2008). This draft has now been superseded by the final, and significantly improved, guidelines (Ofgem: Final green supply guidelines proposals - February 2009).

Briefing Download >>

Associated links: Good Energy Q&A on briefing

<< back