How energy retailers market ‘green’ electricity tariffs to consumers will be reviewed by the government, amid concerns that some are overstating how environmentally friendly their products are, Energy Minister Anne-Marie Trevelyan has announced today (16 August).

9 million British households are now on green tariffs, with over half of all new electricity tariffs launched now badged as ‘100% renewable’ or ‘green’.

With more and more consumers looking to make a green switch and reduce their carbon footprint and the UK having more than quadrupled its renewable electricity generation since 2010, the government wants to ensure consumers signing up to a green tariff know their energy is coming from green sources of electricity generation.

The review launched today will explore the extent of ‘greenwashing’ in the retail energy sector, whether the current system is suitably transparent and whether the rules around what can be called a ‘green’ tariff remain fit for purpose.

Energy companies are currently able to market tariffs as ‘green’ even if some of the energy they supply to customers comes from fossil fuels, as long as this is offset by purchasing enough certificates called Renewable Energy Guarantees of Origin to cover their customer base. These determine the proportion of electricity that they source from renewable electricity generation.

Options being explored include looking at whether the system around these certificates needs to be smarter, as well as whether suppliers need to provide clearer information to households about their green tariffs, including type of renewable energy used (such as wind or solar), where the renewable power was generated and when.

The government is also publishing a separate call for evidence on third-party intermediaries in the retail energy market, such as price comparison sites, auto-switching services, and non-domestic brokers, with around half of households using them when engaging with the energy market. They currently operate outside of the retail market rules, and ministers will seek views on whether a general regulatory framework is needed.

Minister of State for Energy and Clean Growth, Anne-Marie Trevelyan, said:

Millions of UK households are choosing to make the green switch and more and more of our energy comes from renewables. But I want people to know that when they sign up to a green tariff, they are investing in companies that make a conscious choice to invest in renewable energy.

Part of that is ensuring companies are being as transparent as possible on where their power comes from. That way, every family in Britain can rest assured their choices are helping to contribute to our world-leading target of eliminating our contribution to climate change by 2050.

Nearly two-thirds (62%) of UK energy consumers say their purchasing decisions are influenced by how eco-friendly an energy tariff is. However, 75% believe suppliers should be open and transparent about their tariffs, including how much of their renewable energy they buy from other companies.

Consumer protection advocates and price comparison services have also called for greater transparency around suppliers who market their tariffs as green.

Head of Regulation at Uswitch.com, Richard Neudegg, said:

Transparency is key to bring consumers on the journey to net zero. Households want to do their bit to help the environment, so it’s vital to make it as simple as possible for them to confidently pick the tariffs that actually help to support renewable energy.

More and more people are purchasing green tariffs but it’s been difficult for bill-payers to know exactly what’s under the hood of these deals. We support any measures that aim to demystify green tariffs for households.

The call for evidence on designing a framework for transparency of carbon content in energy products was promised in the Energy White Paper. It seeks to gather information from consumer groups, energy suppliers, generators and industry bodies about the need for reform to the green tariff framework. It presents options on how things could change to become more transparent for consumers

Research of consumer attitudes comes from a YouGov poll that features in a Scottish Power and Good Energy report ‘Come Clean on Green’ (2020)

Renewable Energy Guarantees of Origin (REGO) are issued to energy generators by the energy regulator Ofgem to certify that electricity has come from a renewable source. For a tariff to be badged as ‘green’ or ‘100% renewable’, a supplier must be able to show evidence that they are in possession of enough REGO certificates to cover the energy consumed by customers on that tariff

The £232 million will be used to back aspiring Team GB and ParalympicsGB athletes as well as their coaches and support staff, in addition to funding from the National Lottery. This £77.4 million a year to elite sport agency UK Sport is an increase from the £54 million a year baseline government funding UK Sport received for Tokyo 2020 – a rise of 44 per cent.

The news will provide a major boost for Team GB’s returning athletes following their stunning performances in Tokyo, and the Paralympic athletes set to grace the world stage in the Paralympic Games that begin later this month.

They will be in line to benefit from UK Sport’s World Class Programme and Progression Funding, which will provide vital support towards reaching the pinnacle of their sports as preparations begin for Paris 2024 and beyond.

The investment will also support athletes and coaches targeting success at the Winter Olympic and Paralympic Games, and help kick-start the search for the next generation of Olympic and Paralympic champions.

It comes as the Prime Minister and Sports Minister Nigel Huddleston attend the Team GB Homecoming event at Wembley Arena today, where the medal-winning success of the likes of Adam Peaty, Jason and Laura Kenny, Tom Daley and Sky Brown will be celebrated in front of a live audience and broadcast to the nation at home on BBC One.

Team GB and Northern Ireland won 65 medals in 25 different disciplines, broader than any other country, including in BMX and Skateboarding for the first time at what was the latter sport’s inaugural games. These medals placed Great Britain and Northern Ireland fourth in the medal table.

The Paralympic Games will see around 240 athletes representing ParalympicsGB in Japan, including the likes of track stars Jonnie Peacock and Hannah Cockroft and swimmer Ellie Simmonds.

Prime Minister Boris Johnson said:

Team GB showed us the very best of this country in Tokyo – demonstrating sportsmanship, hard work and record-breaking performances. From the pool to the track to the velodrome, our Olympians gave us so many reasons to be proud, and to celebrate their extraordinary success. This increased funding will support Team GB to deliver their best possible performances in three years time in Paris.

Culture Secretary Oliver Dowden said:

Our Olympic athletes have been an inspiration to people across Great Britain, Northern Ireland and the world. Their incredible performances gave us many medal winning-moments in Tokyo that will live long in the memory and I am sure we will enjoy many more from our Paralympians later this month.

Their success is years in the making and a credit to their resilience, dedication and brilliant talent. Despite major disruption caused by the pandemic, Team GB have brought the entire nation together and inspired the next generation of athletes.

Today we reaffirm our commitment with increased government funding, ensuring they can focus on delivering more memorable performances at Paris and beyond.

Sports Minister Nigel Huddleston said:

As this Government has consistently shown, including through these challenging times, we’re right behind Team GB and ParalympicsGB. Our amazing elite athletes are one of our nation’s greatest success stories, making us an Olympic and Paralympic powerhouse.

I’m sure they have inspired many to take up sport for the first time, while making the country proud and promoting the best of Britain abroad. So it is absolutely right that we can now deliver this certainty for them for preparations for Paris 2024.

I now look forward to the Paralympics where the nation will be cheering on our brilliant Paralympic athletes as they make us proud in Tokyo.

Sally Munday, CEO, of UK Sport, said:

On behalf of the Olympic and Paralympic sport community, I’d like to thank the Government for providing us with the certainty UK Sport, Britain’s athletes, and, crucially, their world class support teams, needed for the coming three years towards Beijing 2022 and Paris 2024. The past 18 months have been challenging time for everyone, and I think we have all seen the power of sport to uplift us, demonstrated by our Olympians in Tokyo, and we are looking forward to our Paralympians doing the same in less than two weeks’ time.

Dame Katherine Grainger, Chair of UK Sport, said:

This commitment from our Government, as well as the incredible support we receive from National Lottery players, gives us greater certainty of delivering more extraordinary moments to reach, inspire and unite the nation in Beijing and Paris, and also sets us up perfectly for the ‘greatest decade’ of sport that we hope to deliver in the years to come. Our thanks go to Government and The National Lottery for their unwavering support for Britain’s Olympic and Paralympic athletes.

British Olympic Association Chair Hugh Robertson said:

This is amazing news. We are very grateful for the support from the government that will set us up for Paris 2024 and beyond.

Mike Sharrock, CEO of the British Paralympic Association said:

This is great news for our Paralympic athletes about to compete in Tokyo, demonstrating the government’s backing for their hard-work and dedication in preparing for Tokyo and ensuring that we continue to be a major powerhouse in Paralympic sport through to Paris 2024 and beyond.

With the challenges of disrupted training schedules, lockdowns and additional safety measures, lottery and government funding, coupled with athletes’ hard work and extreme dedication, enabled 376 Team GB athletes to be selected for Tokyo – making it the biggest Team GB at an overseas games.

The funding also comes with less than a year to go to the Birmingham Commonwealth Games in 2022.

Birmingham and the West Midlands are benefitting from £778 million of investment, making it the biggest investment in a sporting event since London 2012. It is already generating jobs for local people, creating world class sporting facilities, attracting new inward investment to the region and promoting the very best of the West Midlands and the UK to the world.

Athletes are set to compete at venues across the region, like Sandwell and Cannock Chase. West Midlands residents can apply now for tickets with a national ballot opening later in the year.

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