Good Energy is taking a stand against greenwashing in the renewable electricity market, introducing new transparency standards that aim to hold suppliers to account.
The move comes in response to growing consumer confusion about the true environmental impact of their energy tariffs and a widespread belief that energy suppliers are more likely to greenwash than other industries.
According to new research, 73% of consumers want stricter rules to ensure that energy suppliers are transparent about their green claims.
The issue lies in the use of Renewable Energy Guarantees of Origin (REGOs), certificates that make it possible for energy companies to sell power as “100% renewable” while sourcing it from fossil fuels.
A recent study by Cornwall Insight found that £1bn is spent annually on REGO certificates, without clear evidence this money is supporting the expansion of renewable energy.
This lack of transparency is causing confusion among consumers, with 54% of people with 100% renewable tariffs mistakenly believing that their supplier sources all their electricity from renewables.
Good Energy, however, is pushing for a change, unveiling a set of three key metrics to help consumers better understand the true source of their energy.
These include:
True green—the percentage of power sourced directly from renewable generators.
New green—the proportion of power sourced from new renewable generators connected to the grid; and
Time-matched green—the percentage of electricity matched to renewable generation on an hour-by-hour basis.
Good Energy is calling on the industry to adopt these measures and increase transparency across the board.
Nigel Pocklington, Chief Executive of Good Energy, said: “Most people don’t know what it means to be certified as a renewable electricity supplier, and if they did, they’d be shocked. Your energy supplier can buy most of your power from fossil fuels and sell it to you as ‘100 per cent renewable’.”
This move also has the backing of Joe Kwiatkowski, Founder of Matched, an open-source initiative. He remarked: “Customers require clearer, more detailed disclosures to make informed choices, and we welcome this initiative from Good Energy.”
Good Energy’s transparency push aims to help consumers make informed decisions while fostering investment in true green energy sources.
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