IEMA responds to call for evidence on green tariffs

The UK energy sector is undergoing a profound transition, with wind turbines and solar photovoltaics now accounting for more than 40% of its electricity mix.

Contributing to or shadowing this transition, energy retailers are increasingly offering ‘green electricity’ or ‘100% renewable’ tariffs to their customer base. It is seen as an easy climate action for households and businesses to take, but there are concerns over the transparency of tariffs and whether they truly support decarbonisation.

This was the context behind a call for evidence from the Department for Business, Energy and Industrial Strategy late last year, which aimed to help it understand challenges around this topic and consider the case for reforms. Drawing on relevant practice and surveys, IEMA responded and raised several issues. One of these is understanding how organisations are themselves using green tariffs, and what their influence (positive or negative) is on organisations’ transition decision-making – especially in the context of net zero.

IEMA’s response proposed that improved consumer information is needed, reflecting changes in the market and the net-zero context. IEMA has provided explainer guidance (bit.ly/NetZeroExplained) and updated principles (bit.ly/PathwaystoNetZero) to support professionals, and looks forward to contributing to further developments in 2022 and working with members to build understanding and share good practice. Read our blog and full response at bit.ly/GreenTariffs_Response