Update on our review of the Green Supply Guidelines

Correspondence and other

Publication date

Industry sector

Supply and Retail Market

Dear colleague

Update on our review of the Green Supply Guidelines

This letter is to update you on the progress of our review of the Green Supply Guidelines that we announced by open letter on 22 February 2013.

Change in the scope of our review

Earlier this year we set out to review our Green Supply Guidelines which underpin the Green Energy Supply Certification Scheme (GESCS). Since then, we have completed further research into the composition of the green electricity market and consumer research on perceptions of green tariffs. We found that the market share1 held by suppliers of green tariffs sitting outside the GESCS was larger than the market share held by scheme participants. In parallel, we consider that the green tariffs market continues to be a unique and complex segment of the electricity market for consumers. These two factors have prompted us to widen the scope of our review to look at how consumer confidence and protection can be maintained and enhanced across the wider green tariffs market.

On 23 July 2013 we met with industry representatives to convey this change in scope, and our expectations for green tariffs in advance of the changes that will take effect pursuant to our Retail Market Review. We also set out our view on the importance of consistent principles for green tariffs across the electricity market. Lastly we welcomed stakeholders to engage with us on an ongoing basis to inform our thinking on what these principles could be and how they could be applied.

Next steps

We are now using stakeholder feedback to help inform the development of options, and we plan to consult on these around the new year.  In the meantime, if you have any queries, please contact Natasha Smith (Natasha.Smith@ofgem.gov.uk or 0207 901 1821) in the first instance.

Yours sincerely

Adam Cooper

Associate Partner, Sustainable Development


1. Measured by number of domestic accounts.