Frequently Asked Questions

We have separated the questions and answers into general and technical areas. If you are eager to sign up to a certified tariff the general questions should be helpful, if you want to know more about green electricity look at the technical answers:

General Questions

• What is a Green Supply Tariff?
• How can I Sign up to a Green Supply Tariff?
• Why should I bother signing up – my Energy Use is too small to make a difference?
• Why should I bother signing up – won't this be sorted out by government agreements?
• What is the best thing we can do for the environment?
• Aren't Electricity Suppliers meant to buy Renewable Energy, anyway?
• Isn't it better to buy 100% Renewable Electricity?
• Is it possible to get ‘100% Green Electricity’ through the Scheme?
• What is additionality?
• Is planting Trees allowable in a Green Tariff?
• Will Gas be brought into the Scheme later?
• What do all these Three Letter Acronyms mean?

Technical Questions

• What are the Green Supply Guidelines and what are they intended to do?
• Why is it not compulsory for all new Supplies to be brought into the Scheme?
• Will it become compulsory for all Electricity supplies to comply in the future?
• Why don't you rank Tariffs on how Green they are?
• How can Coal and Nuclear form part of a Green Energy Supply?
• Why do you allow Carbon offsetting in China, but not in the UK?
• Why has it taken so long to set up a Certification Scheme?
• Why has it taken so long to come up with final proposals?
• Why is there an Independent Panel instead of letting Ofgem do the job?
• Why does the Panel rely on external Auditors, rather then do the work themselves?
• Why don't Suppliers have to offset all the Carbon Emissions – the thresholds look very low?
• Why are there other Suppliers still offering "Green Tariffs" outside the Scheme?
• Will the new Scheme make some current Green Tariffs invalid?
• How are the Rules enforced?
• Will you take enforcement action if suppliers don’t sign up to the guidelines, or if they have a tariff certified and but don't then carry out the additional activity?
• Is retiring ROCs/LECs regarded as additional activity?
• How does the Scheme work with industrial & commercial tariffs?
• How do I&C tariffs relate to CCLs and REGOs?
• You are certifying tariffs, but are not registered with an accreditation body. How is this possible?

General Questions

1. What is a Green Supply Tariff? Top

   A Green Supply Tariff is a supply of electricity that meets three criteria:

   • All the electricity use by customers signed up to the tariff must be matched by Renewable Energy bought or generated by the tariff's Supplier.
     Technically, this happens by the supplier being able to show that it has enough Renewable Energy Guarantees of Origin certificates and has retired or redeemed any renewable Levy Exemption Certificates associated with the supply;

   • The Supplier must also contribute to a minimum level of additional environmental benefits for each customer.
     Essentially, this can either be by purchasing Government Quality Approved Carbon Offsets, or by directly investing in additional voluntary activities such as new renewable energy sources or energy efficiency programmes;

   • The Supplier must sign up to the Green Energy Supply Certification Scheme and obey its rules on transparency (including reporting all its sources of electricity by type) and submitting its Green Supply Tariffs to an annual independent audit.

2. How can I Sign up to a Green Supply Tariff? Top

   It is very easy to sign up to a supply. Most leading energy suppliers have one or more certified Green Electricity Supply Tariffs and, if you are a domestic customer, providing you have not changed suppliers in the preceding 28 days, you should be able to switch to a Green Supply Tariff. You will be able to find details of all certified Green Supply Tariffs on this website, including the Supplier's average fuel mix and additional environmental benefits, although if you want to be able to compare the costs, you should also visit one of the main switching sites. Non-domestic customers will need to check any cancellation terms on their current supply before switching, but may also find that their current supplier can move them onto a green tariff.

3. Why should I bother signing up – my Energy Use is too small to make a difference? Top

   Every customer who switches to a Green Electricity Supply Tariff will be making a contribution towards combating global climate change, through the additional environmental benefits that will reduce emissions of carbon dioxide, the main greenhouse gas. Depending on the Supplier and Tariff chosen, this could include Quality Approved Carbon Offsets, or investments in voluntary activities such as new renewable energy sources or energy efficiency programmes. And as more people switch to Green Supply Tariffs, the total savings will grow rapidly!

4. Why should I bother signing up – won't this be sorted out by government agreements? Top

   International agreements between Governments, such as those made at Kyoto in 1998 or intended to be made in Copenhagen in December 2009, are important in setting maximum levels for emissions of the greenhouse gases contributing to climate change. However, many experts believe that they may be inadequate and that there is still a high chance of damaging climate change even if all Governments meet their international obligations. As a result, additional voluntary actions by consumers remains important, and the Green Energy Supply Scheme is one way in which you can help. For other ways you can help cut emissions, we recommend looking at the Government's Act on CO2 website.

5. What is the best thing we can do for the environment? Top

   In general, you should first look at their own energy consumption and consider energy efficiency measures.

   Beyond that, the Green Energy Scheme will provide a range of alternatives to make more informed choices regarding the tariff that you choose on the basis of your preferences regarding environmental benefits. We hope that as the market continues to evolve, ever more innovative products will become available within the market, which seek to facilitate increased environmental benefits.

6. Aren't Electricity Suppliers meant to buy Renewable Energy, anyway? Top

   All suppliers are expected to source a minimum proportion of their electricity from green supplies, under the Renewables Obligation. However tariffs certified under the Green Energy Supply Certification Scheme go beyond this minimum and require additional voluntary action that will lead to future cuts in emissions of carbon dioxide, the main greenhouse gas contributing to global climate change.

7. Isn't it better to buy 100% Renewable Electricity? Top

   It is possible to buy 100% Renewable Electricity on some tariffs within the Green Energy Supply Certification Scheme. However, it is never possible for individual supplies to be fed into the National Grid purely from renewables; all that 100% Renewables Tariffs can guarantee is that the supplies are wholly matched against renewable energy generation capacity that has already been installed. For example, if you switch on a kettle, it is not possible for your supplier to switch on additional renewable energy generation; the grid will meet the additional demand with whichever source is most economic and available at that time – which could be renewable, gas or even imported nuclear power from France. Green Energy Supply Tariffs additionally require voluntary savings, irrespective of where the original supply has come from.

8. Is it possible to get ‘100% Green Electricity’ through the Scheme? Top

   Your supplier may have contracted with renewable generators to buy volumes of electricity that match that your use. However, the electricity coming out of your socket is the same, and is not altered by moving to a green tariff. Similarly, the carbon emissions that physically result from your electricity use will not be reduced by switching tariffs – they will just be notionally reassigned to other customers. Ofgem therefore thinks that claims stating a customer will consume 100% renewable electricity, through a green tariff, are misleading.

9. What is additionality? Top

   Additionality means “an activity that results in the delivery of an environmental benefit that would not occur under a ‘business as usual’ scenario”.
   
   The activity will need to demonstrate that it has reduced CO2e emissions by a minimum amount (for offsetting activities this is currently set at 1 tonne of CO2e per tariff per year and for all other activities this is 50kg of CO2e per tariff per year). Examples of measures that could be considered to be additional include a contribution towards offset activities, green funds, installation of energy efficiency technologies, or research and development into emerging renewable technologies.

10. Is planting Trees allowable in a Green Tariff? Top

    It may be possible to include tree planting as an additional voluntary action under the Scheme providing that Suppliers can show that there is a high probability that the new forested land will be protected in perpetuity, to ensure that carbon sequestered by the growing trees remains locked out of the atmosphere.

11. Will Gas be brought into the Scheme later? Top

    We hope that it will be possible to add Gas into the Scheme in the future, although there is currently no agreed timescale for this to happen.

12. What do all these Three Letter Acronyms mean? Top

    There are a lot of abbreviations used to describe the structure around the supply of electricity in the UK – and most don't have only three letters! If you are confused, and want to know about ROCs, REGOs, rLECs, and CERT, or to find out who DECC or Ofgem are, then we suggest that you look at our glossary.

Technical Questions

13. What are the Green Supply Guidelines and what are they intended to do? Top

    The Green Supply Guidelines are a voluntary set of arrangements written by Ofgem, the regulator for the energy sector, that set out what green tariffs should comprise and how suppliers should market them. They are intended to provide confidence to consumers that green tariffs are credible and defensible.

14. Why is it not compulsory for all new Supplies to be brought into the Scheme? Top

    A key element of the Scheme is that it is voluntary. The UK Government has already placed a number of requirements on energy suppliers, including a requirement for a minimum of 15.4% of electricity to come from renewable supplies by 2015-6. It also requires suppliers to make investments in energy efficiency, for example under the CERT Scheme. Electricity sold under the Green Energy Supply Certification Scheme provides additional benefits beyond the legal minimum requirements.

15. Will it become compulsory for all Electricity supplies to comply in the future? Top

    No, it is intended that the Scheme will remain voluntary and provide an option for you to purchase energy that offers additional benefits to those required by law.

16. Why don't you rank Tariffs on how Green they are? Top

    We think it is important to give you impartial information about the exact content of the various tariffs available under the Green Energy Supply Certification Scheme, but to allow you to decide which features are most important to you. So some Tariffs come from suppliers with a higher level of existing renewable generation, and others are more focused on investing in new renewables, or in energy efficiency. We think it is best for you decide just which tariff suits your needs.

17. How can Coal and Nuclear form part of a Green Energy Supply? Top

    All certified Green Electricity Supply Tariffs must prove that they have at least as much Renewable Energy bought or generated by the Supplier as is required to match supplies to all customers. However, as most Tariffs come from Energy Suppliers who get their electricity from a mix of power stations, the Scheme also requires full disclosure of the annual fuel mix for all Tariffs from the supplier (not just the green ones). This will usually include some power purchased from coal or nuclear power stations, in line with the UK total fuel mix.

18. Why do you allow Carbon offsetting in China, but not in the UK? Top

    One of the ways in which Suppliers can demonstrate additional environmental benefits is through the purchase of internationally traded carbon offsets under the Department of Energy and Climate Change's (DECC) Quality Assurance Scheme for Carbon Offsetting. DECC currently do not allow offsets in the UK as the benefits would be measured by the Department as part of the overall UK reduction in carbon dioxide emissions, and so would most likely be double counted under our Kyoto commitments. DECC are keeping this under review and the rules may change after the end of the Kyoto protocol in 2012.

19. Why has it taken so long to set up a Certification Scheme? Top

    We thought it was important to develop a robust scheme with broad support, able to offer a wide range of certified tariffs subject to a formal certification by an independent Panel. Inevitably this has taken some time! We are also keen that the current scheme should be sustainable, as we are aware that there were earlier attempts to develop a certification scheme that were later withdrawn.

20. Why has it taken so long to come up with final proposals? Top

    Ofgem originally introduced guidelines on green supply in April 2002 to provide advice to consumers regarding green tariffs and ensure that customers can have confidence in the credibility of green tariffs. It revisited the issue following the publication of the National Consumer Council report “Reality or Rhetoric” in December 2006, by launching a consultation in June 2007. Since then it has worked with a wide range of stakeholders to understand the issues and different views and to develop these proposals.

21. Why is there an independent Panel instead of letting Ofgem do the job? Top

    Ofgem is the Government's energy regulator. It is charged with undertaking a number of statutory functions under the law, but is not able to manage voluntary schemes, including the Green Energy Supply Certification Scheme. So Ofgem has established clear guidelines, which have then been turned into a Rule Book, and passed over to an independent Panel to administer. If anyone disagrees with a Panel decision, they can appeal to Ofgem for a second opinion which the Panel must consider, but the final responsibility remains with the Panel.

    The Panel is composed of a small number of people with specific expertise in the energy industry and protecting consumers.

22. Why does the Panel rely on external Auditors, rather than do the work themselves? Top

    The Panel and Secretariat are keen to keep central costs low so that Green Energy Supply Tariffs can remain competitive for you, the customer. By using independent external auditors, the Suppliers can obtain best value and the Panel are still able to review the information provided to ensure it complies with the Rules.

23. Why don't Suppliers have to offset all the Carbon Emissions – the thresholds look very low? Top

    We were keen to ensure that Green Energy Tariffs remain affordable to most UK consumers, not just the most wealthy, so that they can have the maximum possible impact. So we decided that we would set a minimum level of carbon dioxide emissions that Suppliers must offset or mitigate through additional benefits which should maximise the overall environmental benefits from the Scheme.

24. Why are there other Suppliers still offering "Green Tariffs" outside the Scheme? Top

    Membership of the Scheme is voluntary, and requires the Members to undertake to do certain additional actions, over and above purchasing electricity from renewable energy sources. Some of the other tariffs on sale take this additionality element, while some of the smaller suppliers have yet to join the Scheme owing to the additional costs of obtaining third party versification of the benefits of their tariffs while they still have a small customer base.

25. Will the new Scheme make some current Green Tariffs invalid? Top

    Some of the existing green tariffs available will achieve certification under the new Green Energy Scheme and can continue to be called a ‘green’ tariff. However, where a tariff does not deliver any additional environmental benefit (for example where it is only repackaging what the supplier is doing anyway), then it cannot receive certification. These assessments are the responsibility of the independent Certification Panel.

26. How are the Rules enforced? Top

    The Panel has appointed a secretariat, the National Energy Foundation, to monitor the way the Scheme is working and advise them on any issues that arise. The Suppliers themselves are required to provide annual audit certificates produced by independent auditors detailing their compliance with the terms of the Scheme. Of course, if one Supplier starts to do something that may not be in the spirit of the Green Energy Supply Certification Scheme, it's likely to be one of its competitors who is the first to notice! But the final responsibility for enforcement remains with the Panel, who have the power to require that individual Tariffs or an entire Supplier is ejected from the Scheme.

27. Will you take enforcement action if suppliers don’t sign up to the guidelines, or if they have a tariff certified and it is later discovered that they are not carrying out the additional activity? Top

    The revised guidelines on green supply are voluntary and therefore suppliers will take their own individual decisions as to whether they chose to sign up to these guidelines and the associated certification scheme. However, in the event that suppliers choose not to sign up to the scheme, Ofgem will have to consider the alternative options available to us to address the continued customer confusion evident in this market.
    
    If suppliers choose to sign up to the guidelines and are later found to be in breach, there are sanctions in place through the certification scheme.
    
    Further, there are strict codes in place that regulate all advertising in paid-for space. The codes are endorsed and administered by the Advertising Standards Authority (ASA) and where a complaint is upheld the published adjudication is applicable across the sector as a whole. The Advertising Codes apply to all advertisers, regardless of any other codes of practice or accreditation schemes and help to ensure that suppliers make honest and credible claims about the features of their tariffs. However, the ASA has indicated that, where appropriate, it will seek to take into account the new Green Energy Scheme when investigating possible breaches of the Advertising Codes.
    
    In addition, any misleading or dishonest claims that are made in marketing related to green tariffs may be caught by the provisions of the Consumer Protection Regulations (CPRs). Ofgem is a designated enforcer for the purposes of the CPRs and may take enforcement action where it is considered appropriate.

28. Is retiring ROCs/LECs regarded as additional activity? Top

    Retiring these certificates is not regarded as an additional activity by itself. To ensure that there is no double counting of ROCs/LECs a supplier must hold the requisite number of Renewable Energy Guarantee of Origins (REGOs) to support the volume of renewable supply in a green tariff/contract. The supplier must also either retire or redeem any associated Levy Exemption Certificates (LECs) to ensure that they are not later sold on to other customers. However the supplier will also have to show that retirement in this case does lead to extra carbon emissions being abated either through offsetting or other activities.

29. In its green tariffs fact sheet Ofgem says that green tariffs for the industrial & commercial sector (I&C) "will not necessarily reduce GHG emissions or lead to more renewables being developed".
    Does this mean that the I&C green tariff offering is a case of suppliers bundling their various obligations (RO, CERT & ETS) under the green tariff and so failing to produce renewable energy beyond existing obligations? Top

    Ofgem's green supply certification scheme will only focus on domestic and small business green tariffs at first for the reasons given in the fact sheet. I&C green tariffs tend to be based on LECs, therefore I&C customers should be aware that if they are offered a green tariff it is highly likely that the supplier won't be going any further than its current obligations. (CERT, the Carbon Emissions Reduction Target, is a domestic programme only and suppliers are not required to make energy savings among their I&C customers). This is why Ofgem recommends that I&C customers look at energy efficiency first.

30. Given that the I&C sector is subject to the CCL and given that REGO energy comes with Levy Exempt Certificates, this effectively guarantees at least a minimum purchase of renewables by the I&C sector. Surely the effect of this would be to stimulate demand, which (theoretically) should stimulate greater investment into renewables? Has there been any evidence of this? Top

    It is clear that demand is there from I&C for green tariffs as it is seen as important for CSR and reducing carbon footprints. Also, all customers including I&C ones are paying for the RO and this can lead to increased investment. In the same way demand from the I&C sector for LEC-backed generation should stimulate further development of renewables too. However, there are other significant barriers to renewables, most notably planning and grid access, which limit how quickly renewables can be built. Ofgem, Government and the industry are working together to speed up grid access. You can read more about this work here. Through the Planning Act 2008 the Government is also working to speed up the planning process.

31. You are certifying tariffs, but are not registered with an accreditation body. How is this possible? Top

    The actual certification of tariffs is undertaken by auditors, or other certification bodies, appointed directly by the Members of the Green Energy Scheme. In some cases these are the same organisations as carry out the Member's financial audit, and the work is then usually done under either the AA1000 Assurance Standard or the IAASB’s International Standard on Assurance Engagements (ISAE) 3000. In other cases, the certification is carried out as part of a Quality Management System, and is undertaken in accordance with ISO 17021:2006 by a certification body subject to external accreditation by UKAS. It is also possible that certification can be from energy, environmental or carbon specialists, and performed in line with Accreditation as an Environmental Verifier in accordance with EMAS: Council Regulation (EC) No. 761/2001: March 2001. The Panel is responsible for ensuring that all Tariffs under the Green Energy Scheme are verified to one of these internationally recognised standards.