The Rise of Greenwashing Energy Tariffs

The push for renewable energy has grown rapidly in recent years, with more and more people looking for ways to reduce their carbon footprint and support a cleaner, greener future. As a result, energy suppliers in the UK have started offering green tariffs, which claim to provide renewable energy to households and businesses. However, as the demand for green energy has increased, so has the prevalence of greenwashing energy tariffs.

What is Greenwashing?

Greenwashing is a marketing tactic where companies make misleading or false claims about the environmental benefits of their products or services. This can involve exaggerating the environmental benefits of a product, promoting unverified claims, or using vague language that is open to interpretation. The purpose of greenwashing is to create a positive image of a company’s environmental performance, without actually improving their practices.

Greenwashing energy tariffs occur when suppliers claim to offer renewable energy but do not deliver on their promises. This can take different forms, such as suppliers claiming to offer renewable energy but using REGO certificates to meet their obligations. Renewable Energy Guarantee of Origin (REGO) certificates are issued to renewable energy generators and confirm that the energy generated is from a renewable source. Using REGO certificates allows suppliers to claim that they are providing renewable energy, even if they are not actually purchasing it.

Another form of greenwashing occurs when suppliers use a small amount of renewable energy in their fuel mix but still market their tariffs as “green.” This practice can mislead consumers into believing that they are using 100% renewable energy, when in fact, only a small percentage of their energy comes from renewable sources.

What are Green Energy Tariffs?

Green energy tariffs are electricity tariffs that claim to offer 100% renewable energy to customers. Renewable energy refers to energy generated from sources that do not deplete over time, such as wind, solar, hydro, and geothermal power. When a supplier offers a green or clean energy tariff, they claim that the energy they provide comes entirely from renewable sources, which means that they are reducing the amount of carbon emissions produced from the electricity that they supply.

Green tariffs are often marketed as a way for customers to reduce their carbon footprint and support renewable energy. They typically cost slightly more than standard tariffs but are seen as a way for consumers to make a positive impact on the environment. However, the rise of greenwashing energy tariffs has created confusion and uncertainty for consumers who are trying to make informed decisions about their energy use.

The Rise of Greenwashing Energy Tariffs

The rise of green energy tariffs has been significant in recent years. According to Ofgem, the energy regulator in the UK, over half of all new electricity tariffs offered by suppliers are now green tariffs. This means that suppliers are responding to the growing demand for renewable energy from consumers who are concerned about the environment.

However, the increase in green energy tariffs has also led to a rise in greenwashing. In a recent report by the environmental charity, Good Energy, it was found that many of the UK’s energy suppliers were offering green tariffs that did not actually deliver renewable energy. Good Energy discovered that many suppliers were using REGO certificates to meet their obligations, rather than investing in new renewable generation. This meant that suppliers were not genuinely reducing their carbon footprint or supporting new renewable energy projects.

In a move towards promoting genuinely green energy deals and combating industry-wide “greenwashing,” energy supplier OVO Energy has proposed a new kitemark system. OVO also intends to cease the use of Renewable Energy Guarantee of Origin (REGO) certificates that offer little to no benefits to renewable energy generation. An investigation by consultancy Cornwall Insight supports this decision.

OVO’s new plan focuses on decarbonizing homes and investing in renewable energy to achieve the UK’s net-zero carbon emissions target. Raman Bhatia, the CEO of OVO, argues that the current energy industry practices need reform, and both the industry and government must take bolder and faster actions. Bhatia encourages energy suppliers to improve the energy efficiency of UK homes and incentivize customers to use energy more efficiently.

How do you find legitimately green energy tariffs?

Finding legitimately green energy tariffs can be challenging, but there are some steps you can take to help identify them:

1. Look for “100% renewable” or “100% green” energy tariffs: Some energy suppliers offer tariffs that are entirely powered by renewable energy sources. Check the tariff’s description carefully to ensure that it is entirely renewable and not a mix of renewable and non-renewable energy.
2. Check the energy supplier’s fuel mix: The fuel mix of an energy supplier shows the sources of energy they use to generate electricity. By checking the fuel mix of the energy supplier, you can ensure that they generate their electricity from renewable energy sources. Some energy suppliers offer tariffs with a higher percentage of renewable energy sources than the standard energy mix.
3. Research the energy supplier’s investment in renewable energy: Check if the energy supplier invests in new renewable energy projects. This investment demonstrates that they are committed to increasing the share of renewable energy in the electricity market.
4. Consider the price: Green energy tariffs can sometimes be more expensive than non-green tariffs due to the higher cost of producing renewable energy. However, some energy suppliers may offer green tariffs at a competitive price. Be sure to compare prices with other energy suppliers to ensure you’re getting a good deal.

What’s the difference between greenwashing and green marketing?

In summary, the key difference between greenwashing and green marketing is that greenwashing is misleading and dishonest, while green marketing promotes genuine environmental benefits.

Green marketing aims to educate consumers about the environmental benefits of a product or service and encourage them to make more environmentally friendly choices. For example, a company may promote its use of renewable energy sources or its efforts to reduce its carbon footprint. Green marketing is a legitimate marketing strategy that helps to promote environmentally responsible behavior and encourage sustainability.

How to switch energy suppliers

Switching energy suppliers is a relatively simple process and can save you money on your energy bills. Here are the steps to follow:

1. Check your current contract: Review your current energy supplier contract and determine whether you are on a fixed or variable tariff. Check for any exit fees or cancellation charges that you may incur for switching before the contract end date.
2. Compare prices: Use a comparison website to compare energy tariffs from different suppliers. Make sure you enter accurate details about your usage and meter readings to get the most accurate quote.
3. Choose a new supplier: Once you have compared prices, select a new supplier that suits your needs and preferences. Make sure you check the terms and conditions of the contract, including the length of the fixed term and any early exit fees.
4. Notify your current supplier: Inform your current supplier that you plan to switch and provide them with the details of your new supplier. Your new supplier will handle the switch for you.
5. Meter readings: Take a final meter reading and provide it to your current supplier. Your new supplier will need this information to set up your account.
6. Payment: Set up a direct debit or other payment method with your new supplier to ensure your bills are paid on time.

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