Energy Premium Scheme (EPR) for domestic appliances in the Netherlands

Panel: Panel 4. Building the bridge from lab to customer

Authors:
Hans-Paul Siderius, Novem
Annemie Loozen, Novem

Abstract

The Energy Premium Scheme (EPR) redistributes money from households raised via an energy tax through a rebate on energy efficient appliances, building facilities and sustainable energy production. The EPR started in the Netherlands January 2000 and has been a success in transforming the market for household appliances: with exception of dryers, sales of A-labelled appliances went up to about 70% in 2001 and even higher in 2002. This success stimulated a revision of the EU labelling scheme for cold appliances. The costs for the EPR amount to 65 million Euro in 2000 and 135 million Euro in 2001. Regarding CO2 reduction, the EPR saved about 210 million kg CO2 in 2002. In 2002 the EPR has been evaluated and revised.

The paper provides an overview of how the EPR functions, including the way stakeholders are involved. Attention is paid to the question whether the success is unique for the Dutch situation or can be expected in other countries as well. Further, the paper places some critical questions on the implementation costs and the effects of the EPR. Because of the success of the EPR and the emphasis on redistribution of tax money, less focus was put on product innovation. The current revision of the EPR aims to correct these drawbacks of the original scheme.