London Daily

Focus on the big picture.
Thursday, Oct 08, 2026

Renewable electricity deals investigated by UK government

Renewable electricity deals investigated by UK government

Plan is to tighten rules to stop energy firms exaggerating environmental benefits of green tariffs
The UK government has launched an investigation into renewable electricity deals amid growing concern over the extent of “greenwashing” by large energy firms claiming to offer environmental benefits to customers.

In a crackdown as increasing numbers of people switch to a renewable energy deal, the government said it would review how the sector markets its green electricity tariffs to consumers.

Warning that it planned to tighten the rules to stop firms from exaggerating the environmental benefits of their green electricity tariffs – a marketing tactic known as greenwashing – the business department said the investigation would focus on whether labels such as “100% renewable” or “green” remained fit for purpose.

As many as nine million British households are on green tariffs, with more than half of all new deals launched by energy providers now claimed to come with environmental benefits.

However, firms are currently able to advertise their tariffs as “green” even if some of the energy they supply comes from fossil fuels, which industry figures have warned risks misleading consumers.

Suppliers can use several ways to achieve green status under the current rules, including through committing to use 100% of the income from their customers to invest in developing renewable energy or by striking a deal with an existing windfarm or solar array to buy the electricity they produce.

Under a government scheme, energy firms buy certificates known as Renewable Energy Guarantees of Origin, which are designed to show consumers how much of the electricity they sell has been acquired from clean sources.

When a supplier claims that its 100% renewable energy tariff is backed in this way, it means it will match each megawatt of electricity its customers use with certificates representing the same amount of renewable energy.

However, experts have warned the system is open loopholes that risk “double counting” the UK’s renewable energy supply use or even claiming foreign renewables as its own.

The government said it was considering whether to reform the Rego system to make it “smarter”. Energy suppliers could also be forced to provide clearer information to consumers about their green tariffs, including the type of renewable energy used, such as wind or solar, and where and when the renewable power was generated.

Anne-Marie Trevelyan, the energy minister, said there were concerns that some energy companies were overstating how environmentally friendly their products were.

“Millions of UK households are choosing to make the green switch, and more and more of our energy comes from renewables. But I want people to know that when they sign up to a green tariff, they are investing in companies that make a conscious choice to invest in renewable energy. Part of that is ensuring companies are being as transparent as possible on where their power comes from,” she said.

The business department said polling by YouGov showed that almost two-thirds (62%) of UK energy consumers said their purchasing decisions were influenced by how eco-friendly an energy tariff was. However, 75% believed suppliers should be open and transparent about their tariffs, including how much of their renewable energy they buy from other companies.

The company Good Energy is one of those that has been a vocal critic of greenwash tariffs. In April this year it said energy suppliers had for some time been able to “mislead” customers who were trying to do the right thing in choosing green.

The government is also publishing a separate call for evidence on “third-party intermediaries” in the retail energy market, such as price comparison websites, auto-switching services and other brokers. At the moment, these operate outside the retail market rules, and ministers will ask for views on whether a regulatory framework is needed.

Consumer protection advocates and price comparison services have also called for greater transparency around suppliers who market their tariffs as green.

Richard Neudegg, the head of regulation at Uswitch.com, the comparison service, said: “More and more people are purchasing green tariffs but it’s been difficult for bill payers to know exactly what’s under the hood of these deals. We support any measures that aim to demystify green tariffs for households.”
Newsletter

Related Articles

0:00
0:00
Close
Britain Maintains Diplomatic Mission in East Jerusalem Despite Israeli Closure Deadline
English Councils Push Government to Rethink Proposed Funding Cuts
Scottish Homebuilding Falls to Lowest Level in 11 Years
BBC Chief Matt Brittin Defends Restructuring as Staff Challenge Job Cuts
UK Finance Warns High Energy Costs and Bond Yields Are Complicating Fiscal Outlook
UK Adopts All 44 Recommendations on Regulating AI in Healthcare
Chancellor John Healey Prepares Autumn Budget as Borrowing Costs Strain Public Finances
UK Investigators See Strong Indications of Iranian Link After RAF Fairford Security Operation
Laura Trott Pledges Tighter Controls on Political Activism in UK Classrooms
Welsh Ministers Launch Long-Term Review of North Wales and Anglesey Crossings
Welsh Government Orders 18-Month Study of Road Solutions Around Newport
Reform UK MP Sarah Pochin Faces Scrutiny Over £800,000 Second Home Purchase
British Households Grow More Concerned About Fuel and Energy Prices
NHS Leaders Warn of Rising Winter Pressure on Emergency Departments
Kemi Badenoch Proposes £2.3 Billion Employer National Insurance Cut for Young Workers
Middle East Conflict Could Erase UK Fiscal Headroom, Economists Warn
Manchester City Found Guilty of Multiple Premier League Financial Rule Breaches
UK Security Services Find Strong Indications of Iranian Role in RAF Fairford Incident
Costa Coffee Returns to Operating Profit on Iced Drinks and Menu Changes
Asos Warns Customers After Unauthorized Access to Retail App and Data
Kemi Badenoch Puts Growth and Deregulation at Center of Conservative Conference
Campaigners Warn of Deepening Social Care Crisis for Disabled Adults
Study Finds Rising Early-Onset Cancer Rates Among Adults Under 50 in Britain
UK Coach Operators Warn High Diesel Prices Could Force Route Cuts
FCA Opens Independent Review Into Handling of Epstein-Linked Whistleblower Case
Argentina Vows to Block Falkland Islands Offshore Oil Development
UK Chancellor Prepares Fiscal Measures and Welfare Reforms Ahead of Autumn Budget
Sainsbury’s and Morrisons Explore Potential Multi-Billion-Pound Merger
UK Weighs Tariffs on Chinese Electric Vehicles to Align With European Union
UK Threatens Diplomatic Expulsions Over Planned Closure of East Jerusalem Consulate
UK Energy Price Cap Hits Three-Year High as Middle East Conflict Raises Costs
Seventh Arrest Made in Suspected Terror Plot at RAF Fairford
Systemic Education Collapse Sparks Mass Student Uprisings in France
Green Party Faces Backlash Over Resolution Equating Zionism With Racism
Conservatives Debate Scrapping Environmental Rules for New Homes
Cornwall Insight Warns UK Energy Bills Could Approach £2,000 This Winter
UK Coach Operators Warn of Service Cuts as Diesel Prices Exceed £2
Scottish Parliament Approves £68 Billion Budget With New Tax and Property Measures
FCA Opens Independent Review Into Handling of Epstein Whistleblower
UK Government Drops Plan to Suspend Jury Trials in England and Wales
Bank of England Holds Interest Rate at 3.75% as Markets Watch November
Two Iranian Nationals Charged Over Alleged Plot Targeting Manchester Jewish Community
UK Fiscal Headroom Halves to £11 Billion Ahead of Budget, EY Warns
US Bomber Withdrawal From RAF Fairford Prompts UK Security Review
Sarah Wakfer Appointed Chair of Northern Ireland’s Health and Care Regulator
Scotland Housing Completions Fall to 11-Year Low Amid National Shortage
UK Water Companies Face Tougher Oversight and Unannounced Regulatory Inspections
Middle East Conflict Pushes UK Fuel and Wholesale Energy Prices Higher
Andy Burnham Raises Prospect of Second Brexit Referendum in Review of UK-EU Relations
EY Warns UK Fiscal Headroom Has Halved to £11 Billion Ahead of Autumn Budget
×