Good Energy has called on Ofgem to update the licensing condition to reinstate the link between Power Purchase Agreements (PPAs) and customers to tackle greenwashing. It is one of two key requests made by the supplier at the end of its new Renewable Energy Tariffs: The Problem of Greenwashing report, along with a call for Ofgem to enforce environmental claims by suppliers to be audited by either the regulator or an independent body. The first would require the regulator to update the 21D, “Tariffs with Environmental Claims” licensing condition, as it still includes a requirement to “retire any associated Levy Exemption Certificates (LECs)” which is now out-of-date as it refers to a period when renewable generators were exempt from paying the now defunct Climate Change Levy. These certificates were procured through a direct PPA with a generator, but the removal of LECs created a loophole which has allowed suppliers to claim their tariffs are 100% renewable using Renewable Energy Guarantee of Origin (REGO) certificates. By changing this regulation, no tariff would be able to be marketed as 100% renewable without the supplier buying power directly from a renewable generator.
Current 8th Dec 2020 read more »