What is the Ofgem Green Energy Label Scheme?
Ofgem Green Energy Label is a certification scheme, designed to help identify green energy companies with tariffs that have been certified as having environmental benefits that go beyond government emissions targets.
How does the Ofgem Green Energy Label scheme work?
The energy regulator’s green energy certificate label means energy suppliers need to prove their renewable energy tariffs provide more than the basic requirements set out by government, when delivering sustainable environmental benefits.
Renewable energy providers that go the extra mile to reduce carbon emissions will see their tariffs recognised with the "green energy certified" label, and customers will have more information on the environmental benefits of these energy price plans, to help them make their decision.
The certification scheme implements the energy regulator’s Green Supply Guidelines, which outline what should make up a green tariff, how they should be marketed and the evidence suppliers need to provide to back-up their claims.
In order to be eligible for certification, suppliers must now take extra steps to prove and demonstrate to an independent panel that their "green tariffs" actually go further than meeting the existing requirements set by the government, and result in a reduction of carbon dioxide emissions to a minimum threshold.
Why was the Green Energy Label scheme introduced?
The scheme was introduced primarily to help with transparency in the energy market, in this case where green energy tariffs are concerned, as some suppliers were labelling tariffs as ‘green’ when they were doing no more than meeting the existing obligations required by all energy companies.
This scheme reassures customers that if they choose a green electricity tariff, usually a more expensive option, that they will be supporting a supplier that has proven they are doing more to help reduce carbon emissions.
The Green Energy Certification Scheme guarantees the following three things if a tariff has been certified under the new scheme:
- The electricity will be matched by renewable energy
- The tariff will help deliver additional environmental benefits
- The independent panel will enforce rules on transparency and annual audits