Lynn Boylan (Sinn Fein)
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The cost of energy is going through the roof, mainly due to the rising cost of gas. Curiously, several energy suppliers that claim to offer 100% renewable electricity are also raising their prices. How are companies that are supposedly 100% renewable exposed to the volatility in the gas market? At least part of the answer has to do with the fact that they are not 100% renewable at all. For that reason, I will talk about greenwashing by electricity suppliers in this country. When a person signs up with a 100% renewable supplier, he or she is probably expecting that his or her electricity will be generated from wind, solar or hydro power but in reality, 100% renewable involves suppliers getting electricity from whatever dirty fossil fuel source they like and buying pieces of paper to offset the non-renewable electricity. These are called guarantees of origin. One guarantee of origin corresponds to a megawatt hour of renewable electricity. It is a financial document. If a supplier wants 100% renewable electricity, it simply buys from a producer that offers the guarantees alongside the sales. It seems straightforward, but it is not because there does not seem to be a link between the physical electricity and the guarantees. An energy supplier offering 100% renewable can simply buy the guarantees from anywhere in Europe but the actual electricity delivered will still come from the power plants in Ireland. For example, a consumer on a 100% renewable tariff could be getting coal-fired power from Moneypoint. On paper, it will read as 100% renewable because the supplier has bought a guarantee from as far away as Greece, regardless of the fact that there is no interconnector between Greece and Ireland. It is this unbundling from actual usage that lets companies greenwash dirty electricity.

It is a hugely damaging practice because people have a right to know where their energy is coming from. If they want to avoid fossil fuels, there is no way of knowing which energy company does not use them. Several of the 18 suppliers whose fuel mixes were disclosed this week by the Commission for Regulation of Utilities, CRU, claim to be 100% renewable but this is simply not true. Customers are being misled. This system disincentivises real investment in renewable energy. Why would a supplier bother investing in actual renewable energy when it can invest buttons in pieces of paper in order to claim to be 100% renewable? It can cost as little as 30 cent to greenwash a family's annual consumption of 3 MWh. Some generators enjoy the trickle of income but according to the UK regulator Ofgem, there is no evidence that 100% renewable tariffs materially support the production of renewable energy over and above what is already in place so it is bad for consumer confidence. We know we need a lot more renewable energy in this country but in many parts, its reputation is already in tatters so playing games with bits of paper brings the renewable energy industry into further disrepute.

Big tech companies like Amazon are also buying these guarantees of origin to cover the non-renewable energy they use in Ireland while their web services support logistics for greater and faster extraction of fossil fuels. These practices are also bad for those suppliers that are actually making a stand and buying more from renewables. Regardless of what efforts they make to buy actual electricity from renewable sources, there will always be others that will simply greenwash by buying these certificates. This is a murky problem that has to do with how energy suppliers are taking advantage of loopholes in the way they report their annual emissions in the fuel mix disclosure. There is a dire need for clear definitions and transparency. What is the Government going to do to address this in the interests of transparency for customers?

Frank Feighan (Sligo-Leitrim, Fine Gael)
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I thank Senator Boylan for raising this very important issue. I listened with interest to the points she raised. The Government will continue to monitor the issue of greenwashing to allow businesses and consumers to make informed choices. The CRU plays a very important role in ensuring that electricity companies are transparent on the source of their electricity through the publication of their annual fuel mix information paper and through the requirement that electricity suppliers publish their own fuel mix on all bills issued to customers.

As we aim for a climate-neutral economy by 2050, the low-carbon transition has become a defining force for business. For Irish companies, this means opportunities to compete and grow as global investment in a greener future accelerates. Enterprises that make the move early to reduce their carbon footprint will be more resilient to climate change impacts, including the rising costs of mitigation against transition risks such as policy changes, reputational impacts, shifts in customer preference and evolving supply chain requirements. Businesses that take action to mitigate the risks of climate change and those with environmental credentials can benefit from increased access to environmentally conscious customers, markets and workers; green equity and loan funding; and support from local communities. The European Commission proposal in April 2021 to amend the non-financial reporting directive and to introduce a corporate sustainability reporting directive was welcome. The Department of Enterprise, Trade and Employment is engaging with the EU regarding these developments.

Companies giving a false impression of their environmental impacts or benefits make it difficult for businesses and consumers to make informed decisions and increase the uncertainty about how to best tackle the climate crisis. The 2009 internal market in electricity directive contained a provision, which, following transposition into Irish law, required the CRU to ensure electricity suppliers provide reliable fuel mix information on all bills and promotional materials issued to customers. The 2019 internal market in electricity directive underpins the fuel mix disclosure. The CRU publishes an annual information paper setting out the fuel mix disclosure and the CO2 emissions for suppliers licensed in Ireland and operating in the single electricity market. It includes an all-island fuel mix.

Electricity suppliers publish their own fuel mix information, as well as the all-island information, on all bills no later than two months after the publication of this information paper. This provides consumers with information on the recent environmental impact of electricity from the supplier compared with the all-island average. A supplier's fuel mix information must be presented on bills in accordance with certain requirements. Where fuel mix information is presented on the back of a consumer bill, reference must be made to it on the front of the bill. CO2 information should be given in units of grams of CO2 per kW. In addition to fuel mixed disclosure requirements, the CRU's decision paper on the regulation of green-sourced products in the electricity retail market governs the display of fuel mix information for suppliers who offer green-sourced products.Suppliers may use a guarantee of origin certificate, which is an instrument defined in the renewable energy directive that certifies that electricity is generated from renewable energy sources. In relation to advertising promotion products, suppliers should also follow the CRU's code of practice on marketing and advertising from the suppliers' handbook.

Lynn Boylan (Sinn Fein)
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I thank the Minister of State for his response. Unfortunately for consumers, they are not engineers or experts in electric provision. Therefore, it is hard for anybody to understand in terms of their bill. Even the CRU fuel mix disclosure is not transparent. It is not good enough to hide behind the regulator because the Government can change the remit and legislate for what the regulator does. We need greater transparency. Consumers need to assured that the 100% renewable guarantees of origin match the electricity that was bought and sold by the energy suppliers.

I respect that the EU is moving on this issue. However, I would say to the Minister of State that we do not have to wait for the EU. Austria has already gone ahead and done what needs to be done, namely, ensuring customers have transparency about the type of energy they are buying. If we want to bring people, who are trying their best, along with us in this transition, then we cannot undermine their confidence in the system that when they think they are buying 100% renewable, that is what they are getting.

Frank Feighan (Sligo-Leitrim, Fine Gael)
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The Senator spoke about transparency and the need for legislation, and mentioned countries like Austria. I will bring that back to the Minister. The CRU does play an important role in ensuring electricity companies are transparent. I have noticed it on my own bill and I would not be technically minded. It it is interesting to see where your electricity is coming from.

There have been several developments in ensuring information being presented in the energy market is accurate and transparent. They place obligations on the electricity fuel suppliers to detail the fuel mix. Companies that give a false impression of the environmental impact or benefits make it difficult for businesses and consumers to make informed decisions. It does increase confusion over how to better tackle the climate crisis.

The CRU has published an information paper on the topic, with up-to-date information on fuel mix disclosures. Officials in the Department of the Environment, Climate and Communications are reviewing the paper, which was published this week. The Senator is right that it is vital both consumers and businesses are well informed about the composition of the electricity supply. A lot has happened but I take on board the Senator's point about the need for transparency and legislation. Certainly we can look to Austria as an example.