Ofgem launches green energy guidelines

• By E4B
• 16 July 2008
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The UK's gas and electricity regulator has launched revised guidelines to cover the growing popularity of green energy tariffs.

According to Ofgem, the new voluntary regulations have been created to stop commercial electricity suppliers from describing new deals as eco-friendly if they have not invested any extra finance in renewable projects.

Reuters reports that the guidelines could become compulsory if providers do not follow them and prove their extra investment.

Speaking to the news agency, Ofgem chief executive Alistair Buchanan said he hopes the measures will "shine a light" onto the green products being offered by suppliers.

He added: "We want suppliers to stop re-packaging their existing environmental activity as green immediately and to align their marketing with our guidelines by September 2008."

Ofgem recently unveiled proposals to make major amendments to the governance of energy industry codes.

The reforms are expected to speed up the process of making changes to the regulations, which it is also hoped will strengthen competition in the market.