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Bulb calls for removal of green tariff price cap ‘loophole’

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Clean energy supplier Bulb has called on the government to remove the “loophole” that would exempt green energy tariffs from the looming tariff price cap.

Hayden Wood, chief executive at Bulb, has said the cap on tariffs must also apply to green or renewable tariffs to stop “unscrupulous” utilities from “gaming the system” to charge more for their electricity.

Last month the government published more details surrounding its proposed price cap on energy tariffs, including confirmation that it was to adhere to a recommendation from the BEIS select committee that green tariffs are exempted.

This, the committee said, would allow such tariffs to continue to support renewable energy projects and would only apply to tariffs that demonstrably do so.

At the time it prompted calls from clean utility Good Energy for further debate over what constitutes and qualifies as a green tariff, however Bulb has appeared to go further and call for a complete scrapping of that exemption.

Wood wrote to MPs ahead of the committee stage of the Domestic Gas and Electricity (Tariff Cap) Bill, which is taking place today, urging them to remove the exemption for green tariffs from the price cap.

He said he wanted the exemption removed over fears that it could lead to “millions of families” missing out on potential savings, pointing to research conducted by Bulb that found the “vast majority” of green tariffs were already cheaper than SVTs offered today.

 “It’s a myth that green energy is more expensive. Our research shows that most green tariffs are cheaper than the average Big Six bill… we’re calling on MPs to amend the legislation to ensure the Big Six aren’t let off the hook.”

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