Plan for green energy rating

Energy regulator Ofgem is to develop a new rating system that will allow businesses and consumers to compare the green credentials of energy suppliers.

The industry body intends to introduce a similar system to that used to rate household appliances, which are ranked from A to F in terms of their energy efficiency.

“Currently, customers find it difficult to compare the environmental benefits of the various energy deals on offer,” said Alistair Buchanan, chief executive of Ofgem.

“The new rating scheme will eliminate confusion and encourage customers to seek deals that best meet their needs, and will give suppliers more incentives to innovate and develop new tariffs and products,” he added.

Suppliers will be rated according to the amount of energy generated from renewable sources and tariffs from energy sources with low carbon dioxide emissions. Providers will have six months to develop a certification scheme, which should be operational by next summer.

Industry groups The National Consumer Council and energywatch welcomed the news but stressed more need to be done to define ‘low carbon’.