ASA Adjudication on Barrow Borough Council

Ad

A regional press insert, for Barrow Borough Council, stated "Barrow Borough Council as a leading Local Authority for sustainable energy use is keen to promote the importance of good energy management for the economic, social and environmental well-being of its residents and businesses … The Borough as a responsible property owner and community leader is committed to:- … reducing our energy costs, while maintaining a comfortable working environment". Text below a picture of three people holding certificates stated "... Climate Change certificates on behalf of Barrow Borough Council's properties. Now using electricity from 100% renewable sources".

Text in a box at the bottom of the ad stated "Green energy fuels council buildings. In a shared Barrow Borough Council and Cumbria County Council initiative both councils have collectively purchased their electricity supplies from 100 per cent renewable sources ... Richard Hannah, Standards and Facilities manager said 'After reducing consumption, the next stage of reducing our impact on the environment has been to purchase our electricity supplies from renewable sources. Windmills in the borough are now supplying our buildings'. The council's decision further encourages energy companies to develop supplies from renewable sources. Joining the ever-growing customer base for green fuel means energy companies have to invest in producing more renewable energy to supply demand. Choosing green fuel means the council's buildings are no longer eligible for paying Climate Change Levy. This saving alone almost completely covers the additional premium of buying green fuel'. Mr Hannah added 'The success of this contract means we are aiming for all other council properties to use green electricity by the end of April'".

Issue

Two complainants challenged whether:

1. the claims that council buildings would be supplied by "green energy" and "100% renewable sources" were misleading, because the electricity supply would actually come through the national grid and there was no direct link to the renewable energy sources;

2. "green energy fuels council buildings" was misleading, because not all council buildings had a 'green supply'; and

3. "Windmills in the borough are now supplying our buildings" was misleading, because the windmills did not directly supply the council buildings and the electricity went through the national grid.

CAP Code (Edition 11)

Response

Barrow Borough Council said the article was a public information piece designed to inform local residents of how they were reducing energy consumption and using green fuel where possible. They said they had no plans to use the article again.

1. Barrow Borough Council sent copies of the certificates provided by their supplier, which verified that the electricity was from 100% renewable sources and therefore exempt from climate charge levy.

2. Barrow Borough Council said six of their buildings were supplied with green energy, which accounted for over 60% of the council's spend on electricity. They said they were considering extending the initiative to other sites.  Barrow Borough Council pointed out that the article listed clearly three of the buildings by name and stated that only six buildings in total had been included in the initiative.

3. Barrow Borough Council said their supplier's generating portfolio included wind farms in Cumbria and the Borough of Barrow.

Assessment

1. Not upheld

The ASA noted the complainant's assertion that electricity was pooled in the National Grid before its distribution to consumers and that Barrow Borough Council purchased their renewable electricity in that manner rather than having an embedded source of generation.  We noted, however, that energy suppliers were obligated to purchase electricity from wholly renewable sources or each unit of electricity used by customers on certified green tariffs.  As such, we understood that the electricity from green sources offset the usage of customers on specified green tariffs.

We noted the ad did not make specifically clear that electricity was supplied through the National Grid. We considered, however, that consumers were likely to understand that certified green tariff electricity was widely available through the general electricity transmission system.  We also noted the ad referred to purchasing "electricity supplies", "electricity suppliers" and "energy companies". Consequently, we considered that readers were unlikely to infer from the claims "green energy" and "100% renewable sources" that Barrow Borough Councils buildings were directly supplied from an embedded source of renewable electricity generation. We concluded that the claims were unlikely to mislead.

On this point, we investigated the ad under CAP Code clauses 3.1 (Substantiation), 7.1 (Truthfulness) and 49.1 (Environmental claims) but did not find it in breach.

2. Not upheld

We noted six of Barrow Borough Council's buildings were supplied with renewable electricity on a green tariff.  We also noted some of the Council's other building were not, at the time the ad was published, using renewable energy. However, we noted the ad stated specifically that the initiative was limited to the Park Leisure Centre, Barrow Town Hall, Forum 28 and three other unnamed buildings. Furthermore, we noted the ad stated that the initiative was ongoing and that other buildings would be included.  We therefore considered that, although not all the Council's buildings were supplied with green energy, the claims were sufficiently qualified to make clear the extent of the initiative.  We concluded that the claims were unlikely to mislead.

On this point, we investigated the ad under CAP Code clauses 3.1 (Substantiation), 7.1 (Truthfulness) and 49.1 (Environmental claims) but did not find it in breach.

3. Upheld

We noted Barrow Borough Councils' electricity provider had wind farms in the Barrow area. We noted those generation sources were linked into the National Grid.  Although we considered that it was reasonable to describe certified renewable energy supplied through the National Grid as green or renewable, we considered that the claim went further and cited a specific source. Because we considered that without qualification the claim was likely to lead readers to expect that their electricity supply was routed directly from windmills within the Borough of Barrow, we concluded that the ad was likely to mislead.

On this point, the ad breached CAP Code clause 7.1 (Truthfulness).

Action

The ad must not appear again in its current form. We noted Barrow Borough Council had no plans to use the ad again.

Adjudication of the ASA Council (Non-broadcast)