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New label can improve consumer education

ON PAR The energy efficiency of domestic appliances in South Africa is generally of a high standard

SIMPLIFYING MATTERS The new energy efficiency label will simplify energy classes and provide explanations of features using well-known graphics

8th May 2020

By: Tracy Hancock

Creamer Media Contributing Editor

     

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The next challenge for the South African domestic appliance industry is the migration to a new energy efficiency label under the Appliance Energy Efficiency Standards and Labelling (S&L) programme to improve consumer education.

The label will simplify energy classes and provide explanations of features using well-known graphics.

This development follows the trend in the European Union (EU), says South African Domestic Appliance Association CEO Mark Saunders.

However, he adds that the current S&L programme was introduced at considerable cost to industry and any change to the current scheme adds further cost burden to the industry.

Saunders tells Engineering News that the energy efficiency of domestic appliances in South Africa is generally of a high standard, but the country’s S&L programme has only been “mildly effective” in improving energy efficiency.

He believes that the initiative – implemented by the Department of Mineral Resources and Energy (DMRE), in collaboration with the Department of Trade, Industry and Competition (DTIC) – was not effectively launched to consumers, while a follow-up programme to familiarise and educate consumers on the topic has not been forthcoming.

“A similar comment can be made about the retail sector, although efforts have been made by appliance companies to educate sales staff and promote the labelling scheme.”

Saunders emphasises that local energy efficiency standards are competitive with those imposed internationally.

“The energy efficiency classes locally were derived from well-established standards, mainly from the EU, as well as other overseas markets. Additionally, most of the appliance companies operating in the local market are subsidiaries of global companies. Those that are not, usually have links that facilitate the exchange and transfer of technologies.”

Revision of Standards

According to the impact assessment on South Africa’s S&L programme by US national laboratory Berkeley Lab, published last year, the DMRE is working to explore the revision and expansion of the S&L programme, in collaboration with the Global Environmental Facility and the United Nations Development Programme. This will take place through an 18-month extension of the project that originally supported the implementation of the S&L programme’s development.

Saunders says industry has welcomed the DMRE’s willingness to consult on the revision of energy efficiency levels.

“The revision of existing energy efficiency standards would be gradually introduced, giving manufacturers time to include new technologies and materials into products. Critically, a delicate balance must be maintained between achieving the new standard and remaining price competitive.”

The revision will result in the extension of the range of products and/or categories requiring energy efficiency labelling, which serves to improve the credibility of the initiative, says Saunders.

He advances that when consumers see more products in stores carrying energy efficiency labelling, they will be more conscious of saving energy and look to buy energy efficient products that meet their requirements and suit their budget.

“Although, as minimum energy performance standard values increase, savings become incremental and will not instantly and significantly impact on energy consumption in consumers’ homes.”

Limiting Factors

The energy efficiency of domestic appliances sold in South Africa is influenced by the addition of energy saving measures and technologies in manufacturing and the impact on the purchase price.

“With the appropriate investments, companies could raise appliance energy efficiency values to the highest level or close to best in class,” says Saunders.

However, this would impact negatively on market pricing and put many appliances out of reach for most consumers, which is counterproductive, he highlights.

Another factor hindering the uptake of energy efficient domestic appliances locally is the failure of the National Regulator for Compulsory Specifications, or NRCS (a division of the DTIC) to police the market for products that do not display an energy efficiency label or randomly test products to verify for energy efficiency claims.

Therefore, there are potentially products on the market with labels that exaggerate their energy efficiency performance figures, stresses Saunders.

“This is clearly fraudulent, misinforming retailers and consumers,” he states, adding that the NRCS should immediately institute a market surveillance programme to verify whether manufacturers are compliant with energy efficiency label standards and test appliances randomly.

Saunders states that manufacturers do not depend solely on the test capability and capacity of the South African Bureau of Standards, which is “inconsistent at best”, to ensure that their products meet local energy efficiency standards.

Other test facilities are available to industry locally and internationally, and some South African manufacturers are also equipped with their own accredited test laboratories, he adds.

Additionally, the lack of incentives for consumers to buy more energy efficient products in a higher price bracket is hindering local energy efficiency.

Therefore, Saunders suggests that entities such as State-owned power utility Eskom and municipalities, should offer incentives such as rebates and/or vouchers to consumers who buy appliances in a particular energy efficiency class.

For example, ‘Cash for Clunkers’ programmes, which have proved successful internationally, have successfully incentivised consumers while drawing attention to the topic of energy efficiency.

“The exchange scheme ensures that an efficient product enters the market while an old, inefficient model is withdrawn for recycling,” Saunders states.

Edited by Zandile Mavuso
Creamer Media Senior Deputy Editor: Features

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