EWON Energy & Water Ombudsman NSW. Free, fair and independent.

Green energy options

The NSW government requires that standard energy retailers offer green energy to customers opening new accounts. Green energy options plus the wide range of energy contracts/offerings/discounts can be confusing.

EWON has received complaints from consumers

• who have been pressured by a marketer to ‘do the right thing’ and take up a contract with a green energy component
• who have been told by a marketer that they won’t be paying more to ‘go green’, but then receive a higher bill than before
• who want to go green but will have to pay a termination fee to cancel their existing non-green contract
• who have signed for offers such as energy saving globes then found they also signed a contract and their account was transferred without their consent
• who are confused about what they are actually paying for

Some people who have signed contracts with a green energy component have complained about problems also experienced by consumers on non-green energy contracts, for example:

• transfer between retailers (can take months)
• billing methods (nominated monthly payments then reconciliation and a big bill)
• payment methods (direct debit not post office or other convenient methods)
• special offers (discounts are conditional)

Tips for consumers

• You don’t have to take up the option of green energy. Green energy is worth supporting however it may not be an affordable option for you at the moment. If you don’t take up a green energy option, you’ll still get electricity supplied.

• If you want to go green, you don’t have to sign a market contract. Check with your standard retailer to see what green energy options they offer as part of your standard contract. If you do take up a green option what you purchase are Renewable Energy Certificates.

• Consider the extra cost and what you can afford. Energy price increases come into effect 1 July each year. Some customers in financial difficulty may find the additional cost of green energy too much.

• Look for GreenPower accredited products. These products are audited by NSW government and the reports are available at www.greenpower.gov.au Non-accredited ‘green’ tariffs are not audited by the GreenPower Accreditation Program, and their claims to ‘greenness’ are therefore untested.

• Research the energy offers and green products provided by retailers. To compare offers visit www.myenergyoffers.nsw.gov.au