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First UK energy sourcing labels issued

The UK’s first Energy Label scheme, which grades companies on their electricity sourcing in an A to G format, has issued labels to 500 companies.

The UK’s first Energy Label scheme, which grades companies on their electricity sourcing in an A to G format, has issued labels to 500 companies. 

Established by renewable energy supplier, SmartestEnergy, in collaboration with the Carbon Trust, the Energy Labels specify the source and carbon content of every megawatt of electricity companies buy.

The scheme was designed to increase business confidence that sourcing 100 per cent renewable energy can yield significant business benefits

The label allows businesses to report the exact carbon footprint of the power they use and their contribution to meeting the UK’s climate targets. 

Momentum

According to SmartestEnergy, switching to renewable power is the quickest and most cost-effective way for a business to cut its carbon footprint, whilst only adding less than one per cent to the average power bill. 

Robert Groves, chief executive of SmartestEnergy, said: “For a while now, business customers have been calling for increased transparency around renewables to help them make the decision to switch that much easier. The momentum for businesses to buy renewable is really growing.”

The first 500 companies to be issued with a label include a number of leading firms, including construction giants, Saint-Gobain UK and Willmott Dixon, and the University of London.

Empowering businesses

Hugh Jones, managing director advisory from the Carbon Trust, which has certified the scheme, said: “We have been working with SmartestEnergy for the past two years and are very supportive of their continued efforts to provide clarity around 100 per cent renewable electricity.

“Businesses have an important role to play in ensuring the UK meets its carbon reduction targets and it is initiatives like this that are helping to empower businesses to choose renewable power. The Energy Labels provide businesses with the rigour and traceability they require to navigate the complexities of renewable energy and carbon reporting.”

The scheme is also supported by the influential Aldersgate Group of green business leaders, which first called for an industry-wide electricity label in 2014

Nick Molho, executive director of the Aldersgate Group, said: “We hope this is the start of all UK suppliers providing an A-G rated label for the electricity they have supplied to their business customers, to help drive uptake of renewable electricity.”