The NCC investigation criticises Ofgem‘s current system in place to classify green energy and highlights the need for a formal definition of what energy qualifies as ’green‘ to be introduced by the gas and electricity regulators.

Existing green energy tariffs in place are not as efficient as they may seem; nor do they always deliver many of the reported environmental benefits featured in slick advertising campaigns. The reality is, even the better green tariffs deliver a reduction of just 6% of normal carbon emissions in a year.

As there are no strict guidelines in place, it encourages confusion for consumers and businesses alike. Combined with complex legislative rulings, consumers are further at risk to being misled by claims.

The report calls for a rigorous system of accreditation to be introduced for benefiting customers, allowing them to easily make their selection on the energy tariff they have subscribed to. This should be based on sound industry advice from suppliers which would allow them to be reassured that the tariff they choose is definitely the product they receive.

his clouded information given to consumers by the large suppliers only intensifies the confusion, powering an ongoing sense of distrust due to customers simply not being factually aware of what they are buying in comparison to what they are being assured they are paying for in cleaner energy tariffs.

Supposedly, making the decision to switch to green energy should be one of the simplest ways for businesses to reduce their environmental impact. However, the report indicates that this is most definitely not the case. So far, less than 1% of businesses in Great Britain have signed up to greener tariffs.

Prices are expected to rise as the energy industry strives to meet government targets on CO2 reduction. It is of paramount importance for energy providers to produce new, cleaner energy to meet these targets because green energy is never going to be cheap. However, without a rigid definition of what is and what isn‘t green to ease confusion; consumers will never know the difference between clean energy and what they are actually buying into when they pay for more expensive tariffs.

With wholesale electricity prices which are forecasted to rise, as will energy tariffs which will contribute to an uncertain time ahead for suppliers and consumers alike.

Graham Paul, Sales and Marketing Director, E4B comments:

’From many suppliers, a green energy tariff isn‘t likely to mean the most cost effective for business customers. SME‘s shouldn‘t be the first in the queue for purchasing green energy, as only 10% of energy available within the business market is renewable. For now, allow bigger businesses foot the bill for green energy tariffs until there is a more affordable alternative in place which will enable SME businesses the luxury of buying green. The only environmentally valuable action small business customers can take is to become clever with energy efficiency and look to keep their bills low‘.

Advertising campaigns by larger suppliers and regulators alike only encourages the confusion; it is important to provide a clear and reliable system of grading in order to bridge the knowledge gap between which tariffs consumers purchase and the quality of energy they receive.

It should not be a shock to learn from recent reports that more renewable energy has been sold than actually produced; thus further instilling that not all is as it may seem when it comes to knowing the difference between the tariff itemised on your bill and the energy which switches your lights on.

The safe choice for SMEs is to focus their green intent onto energy efficiency that they can deliver now until more renewable energy is created and correctly defined. Independent supplier, E4B‘s (electricity4business.co.uk) energy efficiency papers detail exactly how your business can help the environment by regulating the amount of energy you use.

Electricity4business is Britain's independent electricity retail company specialising in the supply of electricity to small and medium sized businesses. E4B's aim is to cut the cost for British business by offering lower prices. For more information please visit www.electricity4business.co.uk [1]