DECC launches energy efficiency labelling trial
Emma Leedham | 9 September 2013

Energy Secretary Edward Davey and retailer John Lewis have today (9 September), launched a product labelling trial that will see lifetime electricity running costs printed on washing machines, washer dryers and tumble dryers.

The six-month trial, run by the Department of Energy and Climate Change (DECC) in partnership with John Lewis, forms part of the government’s Energy Efficiency Strategy, published in November of last year. The strategy identifies what actions can be taken now to ‘kick start a revolution in UK energy efficiency’.

It is hoped that the labels will emulate the success of a similar trial in Norway that showed consumers were more likely to purchase energy efficient goods if they could see the ‘real’ savings they can bring to household bills.

More ‘transparent’ labelling

Speaking at the launch of the new labelling scheme at John Lewis, Oxford Street, this morning, Davey said: “In the past, people have had no idea how much their appliances will add to their energy bills. Now consumers will be able to see clear, simple information on the lifetime electricity costs for appliances like washing machines and tumble dryers. This will help people to make better, more informed decisions and see how much an appliance is expected to cost over its lifetime.

“Just by choosing a more energy efficient washer dryer when replacing an old appliance, consumers could save over £500 in lifetime energy costs. This shows the serious savings that are possible when you buy energy saving goods. This new trial with John Lewis – one of Britain’s biggest high street names - will help raise consumer awareness of energy running costs. I hope it leads to more retailers rolling out clearer labelling.”

Head of Sustainability at John Lewis, Stephen Cawley, added: “The new labelling is designed to provide customers for the first time with lifetime running costs of washing machines, tumble dryers and washer dryers, so that they are able to make more informed decisions and comparisons when purchasing new models. We are looking forward to reviewing the results of the trial next year and seeing how customers respond to new more transparent labelling around the energy efficiency of these products.”

Helping ‘disengaged’ consumers

Further to the product labelling trial, the government have secured agreement to train approximately 500 volunteers through the ‘Big Energy Saving Network’.

In May this year, DECC announced that it would provide £900,000 in 2013/14 to fund the network, in the hope of helping consumers to cut energy waste and reduce their energy bills.

The volunteers will help some of the ‘most disengaged’ consumers to switch energy suppliers and get a ‘better deal’; reportedly, 84 per cent of people have not switched energy supplier in the last year, and have therefore ‘missed out’ on savings as high as £158 on their energy bills.

According to DECC, the network will raise awareness of how ‘vulnerable’ consumers, such as the ‘poorest’ pensioners, can receive assistance through schemes to heat their homes and reduce their energy use.

Speaking of the network, Edward Davey commented: “Many people across the country will already be thinking about getting ready for the winter ahead. We’re doing our bit by working with our partners in the Big Energy Saving Network to help people get their bills down and keep their homes warm – before the clocks go back.

“An army of around 500 volunteers will be trained to provide advice and practical help to the most vulnerable about how to keep warm and access the help that is available. This will help create a legacy of savvy switchers, giving households all the information they need to engage with energy suppliers and seek out the best deals. This comes on top of radical reforms to bring people simpler and clearer energy bills, to cut the number of tariffs on offer and to make suppliers take customers off poor value dead tariffs on to the best deal for them.”

Government push to increase energy efficiency

The product labelling trial and Big Energy Saving Network are just some of the initiatives being championed by the government, in a push to improve the nation’s energy efficiency and lower energy bills.

However, some of the schemes, such as the Green Deal – which encourages homeowners to take out low-cost loans to make energy efficiency improvements to their home – have gotten off to a shaky start.

Under the initiative, householders can borrow up to £10,000 from private sector investors for the improvements, such as loft and wall insulation, which can then be repaid over a period of up to 25 years through energy bills. The responsibility is then placed on the bill player, rather than individuals, so would continue to be paid, even if owners change.

However, the deal was labelled a ‘shambles’ after a lack of interest in the scheme, which was expected to attract up to 14 million people. According to monthly statistics for July, released by DECC on 20 August, only one household Green Deal project has so far gone ‘live’.

Read DECC’s Energy Efficiency Strategy.

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How will the government and DMOs address the challenges of including glass in DRS while ensuring a level playing field across the UK?

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There's no easy solution to include glass in the DRS while maintaining a level playing field. Potential approaches include a phased introduction of glass, potentially with higher deposits to reflect its logistical challenges. The government and DMOs could incentivise innovation in glass packaging design and subsidise dedicated return points for glass-handling. Exemptions for smaller businesses unable to handle glass might also be necessary. Any successful solution will likely blend several approaches. It must address the differing priorities of devolved administrations, balance environmental benefits with logistical and cost implications, and be supported by robust consumer education campaigns emphasizing the importance of glass recycling.