As easy as ABC


As the European Commission’s proposed changes to energy labelling go back to the drawing board, we gauge the reactions of those in the know

Even when a minus adds up to a plus, there is something about the ‘m’ word and its accompanying symbol that strikes an instinctively negative chord in the minds of most. The European Commission and its member states have discovered this to their frustration – their proposed revisions of the familiar A-G energy label have run into gridlock. 

In attempting to redefine A-rated appliances to reflect the energy percentage saved by today’s superior machines, members voted for upgraded ratings of A-20, A-40, A-60. Most neutral observers, while getting the gist of the idea, found it about as clear as a frosted window.

What confused the issue further was the contradictory voting, which resulted in the endorsement of the proposed new label for some products, but not for others. As we now know, the grand idea quickly ran into a formidable buffer of resistance from eco and consumer organisations, environmental groups and the Energy Savings Trust.

And so we have reached a stalemate. The European Parliament is now taking a fresh look at the scheme and considering options that include the complete recalibrating of the A-G scheme and/or the endorsement of the currently unofficial A+ and A++ ratings. As the plot thickens in a way that only a European plot can, so criticism grows. Which? magazine witheringly describes the whole exercise as a waste of, yes, energy.

As the policy-shapers trot back to the drawing board with instructions to formulate a system of greater clarity and meaning, the industry finds itself faced with a bureaucratic saga that could run and run. As a former football commentator was fond of saying, “The idea was right, but...”

When emotions run high, objectivity tends to go out of the window. As tech­nology races ahead in leaps and bounds and appliances improve their performance all the time, few observers would dispute that the current rating system needs a makeover to more accurately distinguish the good from the very good. The stance of Which? magazine, for example, reflects the belief of many others. And while the consumer organisation is dismissive of tampering with the prized A rating, it does not advocate simply standing still.

Which? Magazine’s policy manager Ashley Gunn tells ek&bbusiness: “Research shows that 87% of British consumers are aware of the A-G system, with similar or higher percentages recorded in other EU member states. Energy rating labels work well in their current form and consumers understand them. The proposed changes unnecessarily complicate the issue, and will only confuse people looking to buy an energy-efficient appliance. 

“Instead of trying to re-invent the wheel, the Commission should recalibrate the current labels and increase the standards of energy-efficient products.”UK trade associations have broadly and enthusiastically supported the need to get up-to-date but are insistent on a system that won’t confuse consumers.

Douglas Herbison, chief executive of AMDEA, explains: “The domestic appliance industry has invested greatly over the last decade in measures to improve the efficiency of its products. The energy label used throughout the EU and beyond has undoubtedly helped to focus attention on more efficient products. The coloured bands A-G have become a well-recognised feature.

“The problem we have now is that while at one time there may have been a spread of products from A to G, today most of our products are in the A or A+ categories. If we wish to continue creating ever more efficient products, we need to devise a scheme that takes us beyond A. It is for this reason that alongside our European Trade association, CECED, we proposed a numerical scale which would cater for ever more efficient products in the future.

“However, there have been suggestions that A-G could be kept, but with products downgraded. Thus, for example, a product now sold as an A might become a C. At AMDEA we feel that this could create confusion as consumers ask why a product previously sold as an A has been downgraded in this way.

“We hope that the system eventually adopted is open-ended and easily under­stood by consumers. In this way, it will encourage the production and distribution of ever more efficient domestic appliances.”

RETRA, the trade association for independent electrical retailers and servicing organisations, thinks along similar lines. Mike Floodgate, the association’s support and development executive, says: “The current system has become unwieldly due to improvements in the energy efficiency of products, creating not only an 

A grade but A+, A++ and even A+++ grades – clearly an unsustainable situation.

“The EU outcome is a system which is a combination of the old and the new which, while not ideal, does go some way to providing a system that can move forward with product improvements in energy efficiency. 

“Providing the system remains clear to both consumers and retailers, RETRA members will continue to provide consumers with information and advice on the energy efficiency of the products they sell.”

ek&bbusiness says

The trouble we have got ourselves into as an industry is similar to the disease that now plagues virtually every other field of competition. We want every contest to be for the gold medal or the world championship. No silver or bronze gongs, please – they just don’t glitter in the same way. Nothing wrong with that, but we cannot deny that some things in this life fall short of excellence and are quite justifiably B, C or D-rated.

Just as once-meaningful superlatives such as ‘great’ and ‘outstanding’ have now lost their value, so the singular and perfectly apt A rating is being bumped down the ladder as we conveniently invent double and triple hybrids. 

Conversely, anything below A is an eyesore to those who don’t wish to acknowledge the inevitable bumps and kinks in every playing surface. Consumers and retailers have more than enough to cope with in these immensely trying times without having to re-learn their electrical ABC.

Take a good look at the familiar A-G energy label to which we have all become accustomed. It is not the letters that need to change but simply their significance. 

With so many new machines offering better performance and a gradual disappearance of bog-standard offerings that were once commonplace, we simply need to give the existing ratings new meaning.

There is plenty of space within those nice coloured bands on the label in which to insert short and concise denotations of their revised worth – without making the poor old consumer reach for the Anadin Extra.A+? Sorry, folks, but you can’t upgrade the first letter of the alphabet. A-? Just a cosy way of making B sound a little better.

So... where do appliance manufacturers stand?

ek&bbusiness sought the reaction of leading manufacturers on the latest developments. Most are fighting shy and feel it is more appropriate for AMDEA to comment on behalf of the industry. However, one or two are speaking up.

Graham Gleave, national sales manager for ATAG, says: “We welcome the European Commission decision to update the current EU energy labelling system. It is clear that the current system is not fit for purpose as manu­facturers over the last few years have been producing appliances which have exceeded the current official top A energy rating. Our concern is that by adopting the proposed A-20, A-40 rating, this will be even more confusing than the current system.”

Mark Bristow, md of Coolectric, the UK importer of premium brand Viking, is even more scathing: “We’re all agreed that the energy labelling system needs simplifying and – like GCSE exam grade inflation – A has to mean something again. But if you need a degree in quantum physics to be able to understand the new system, then clearly it has failed.

“Over the next 18 months, government, manufacturers and retailers have to reach an agreement on a system that first and foremost consumers can understand so they can make an informed choice and buy the best in class.”

Mark Celik-Alvis, Fisher & Paykel’s group product manager for refrigeration and laundry, believes that the re-classification of the energy label will be a positive development for consumers and the industry as a whole: “From a standard point of view, the factories have been working continu­ously to stay up-to-date on the European legislation. The actual label needs signing off before it can be used in each individual member state.

“The new rating ensures that any product which is currently below B, is no longer on the market from 1 July 2010 onwards. This ensures that consumers will only have the best energy-rated products available. 

 “On the other hand, the new rating will also re-rate any current A-rated product to a B-rated product.

“Fisher & Paykel is continuously improving its range to ensure we stay at the forefront of energy efficiency. Both the new standard and labels ensure the best product offering available in the EU for the consumer.”

Premium brand Miele currently offers A, A+ and A++ energy-efficient appliances across its range, and group product manager Vanessa Holloway is mindful of the scope of the challenge faced by the EU Commission: “Take refrigeration, where the proposed A-20, A-40 grades could potentially create some confusion for the consumer in qualifying the grading of A-rated appliances. Indeed, the old energy labelling would need addressing, as the scale B to G in most cases for refrigeration and other products would be redundant.

“Much has been invested in the efficiency of products within the industry, and if the measurement looked towards a numeric approach, this could provide an open-ended scale in order that new improvements to efficiency can be awarded higher grading as they launch to market, without downgrading the A energy-rated products that exist today.

“Further consideration should be taken of the usage of products. Specific programmes may deliver A or A+ rated performance when bought, but due to differing consumer lifestyle and household types, more or less energy may be consumed depending on how the appliance is used by the individual household.”

Joan Fraser, product development and training manager at Smeg, concludes: “The labelling needs to be clear, concise and conveyed in a positive way to ensure that the consumer understands the system. At the end of the day we want to guide customers towards those products which offer the highest, most eco-friendly performance.”

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