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Columnists: Philip Sellwood, UK Energy Saving Trust
Published on: 18 Feb 2009
Consumers need more clarity, not less
Times are tough across Europe, belts are being tightened and consumers are looking for ways to conserve cash.
If the average UK householder installed basic energy saving measures, like insulation and buying the most energy efficient appliances, they could save £340 year on their fuel bills. With a trebling of calls to our UK-wide advice line in recent months, the Energy Saving Trust has proof that this is a simple message that is hitting home in the UK.
When it comes to buying decisions, shoppers are more inquisitive and resourceful than ever. Right now, we need to make sure that consumers are getting the independent and trusted advice they need. We need to make sure that we make the decision-making process straightforward. Simply putting a label on a product is unlikely to help consumers make choices as that label needs to be recognised, understood and most of all trusted.
That’s why we are very much against changing the A-G EU Energy Label. Although it needs tightening up to make ‘A’ tougher to achieve, the principle of how it works is very straightforward.
In fact, nine out of 10 Europeans are aware of it.
The Energy Saving Trust’s aim is simple; we aim to cut carbon dioxide emissions, the main green house gas, causing climate change, by giving advice on saving energy, domestic renewables and greener transport. We have more recently included water saving and waste reduction advice as well. We are independent and act as a bridge between Government, consumers, businesses, Local Authorities and the Energy market. Because we act as this bridge and because we are independent, we are able to make sure that simple environmental messages are reaching the consumer.
This it is not always that easy. Let’s take the recent furore in the UK and European media about energy saving light bulbs. For example, our research shows that consumers still think they take ages to light up and that they don’t fit many lamps. That’s why we’ve designed a simple light bulb challenge which we are taking around the UK – two identical booths, one with an incandescent light bulb and the other with an energy saving one. It’s changing people’s perceptions in an instant. This light bulb challenge has reinforced what we already know: direct interaction with the consumer is the most effective way to influence a buying decision. That’s great.
But not if the interaction with the consumer has a negative influence, which we believe will be the case if the A-G label is changed to something else.
Our European-wide research shows that seven out of 10 Europeans find the current A-G scheme much easier to understand than other schemes being considered by some EU member states.
So why change it? We know that the current system is flawed to some extent in that, as more efficient products come to market, an A+ or A++ rating is given. But this is easily solved if the standards for A-rated appliances are tightened, making ‘A’ harder to achieve and therefore pushing manufacturers to continually make products that are more efficient.
The European Commission’s Energy Label Regulatory Committee could be about to cause major confusion for European consumers. An alternative option tabled proposes replacing A-G with numbers that will run in the opposite direction to the current system: the higher the number, the better the product. To make matters worse the top number will keep rising as efficiency improves. But how will the consumer know if the product they like is the most efficient that money can buy? They won’t. We need to stick with A-G. Instead of wasting time, money and effort in changing a label that has strong recognition, we need to invest in our current A-G label and make sure it is even more recognised, understood and trusted by consumers.
In the UK we’ve been trying to simplify the consumer decision making process further by highlighting the most energy efficient products available through our Energy Saving Recommended (ESR) scheme. The ESR logo works alongside the EU Energy Label to highlight best in class products. It is awarded by the Energy Saving Trust to a range of products, from washing machines to digital TVs. Only the most energy efficient equipment is given the ESR logo, with the criteria set by an independent panel and reviewed annually.
Seventy-nine ESR-member retailers sell ESR products. There are over 3000 ESR-accredited products, including some not yet categorised by the EU Energy Label, such as integrated digital televisions. If a customer sees the Energy Saving Recommended blue triangle logo – whether the product has the A-G label or not – they can be sure it is the best in class.
The Energy Saving Trust is currently investigating the potential to expand the categories covered by Energy Saving Recommended. These will include: microwaves; electric ovens; cordless phones; and vacuum cleaners.
Our number one principle is to make things as easy and straightforward as possible for the consumer. Last year, seven million white goods were sold in the UK and 70 per cent of those were A-rated. In 1999, sales of A-rated washing machines stood at just 12 per cent.
I am urging all members of the eceee to rally together to retain our A-G label! If it’s not broken it doesn’t need fixing.
