UK launches probe into exaggerated renewable electricity deals

The UK government has launched an investigation into renewable electricity deals amid growing concern over the extent of “greenwashing” by large energy firms claiming to offer environmental benefits to customers.

In a crackdown as increasing numbers of people switch to a renewable energy deal, the government said it would review how the sector markets its green electricity tariffs to consumers.

Warning that it planned to tighten the rules to stop firms from exaggerating the environmental benefits of their green electricity tariffs – a marketing tactic known as greenwashing – the business department said the investigation would focus on whether labels such as “100% renewable” or “green” remained fit for purpose.

As many as nine million British households are on green tariffs, with more than half of all new deals launched by energy providers now claimed to come with environmental benefits.

However, firms are currently able to advertise their tariffs as “green” even if some of the energy they supply comes from fossil fuels, which industry figures have warned risks misleading consumers.

August 2021

IEEFA