Paul Hide, CEO, AMDEA OPINION


February 2021 ertonline.co.uk


Energy label changes: A shock to the system?


Whilst the energy label changes place yet more burdens on manufacturers and retailers in already challenging times, they are driven by superb appliance energy performance improvements and offer an excellent background to a compelling sales story to hopefully help close sales in stores.


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he current label scale and design was introduced 10 years ago with the objective of giving the purchaser an indication of the relative energy usage of one appliance


versus another, allowing them to make an informed choice as to appliance efficiency as part of the purchase decision making process. At the time of introduction, products ranged in


scale between A to G, with A and B rated products clearly the leaders. Continued improvements in energy efficiency, as a result of continual product evolution, now means that pretty much every new appliance is ‘A’ rated and the relative performance is defined by the number of ‘pluses’ that follow. The improvements in energy efficiency of


appliances over the last 10 years is huge. Today, 80 per cent of washing machines sold are A++ or A+++, 90 per cent of fridge freezers are A+ or A++ typically using 40 per cent less electricity than a new model sold in 2010. Part of the joint responsibility when selling new


appliances is supporting the collection and recycling of old appliances, removing waste to landfill and supporting a circular economy model. The visibility of such an approach gives eco- conscious consumers confidence that they can upgrade their current appliances with a minimal, or even beneficial impact on the environment. The clustering of appliances within the ‘A’


category, not to mention the number of ‘+’ suffixes, has led to a meaningless differentiator for prospective purchasers. To address this situation, the sensible decision has been taken to re-scale appliances. From 1 March 2021, rescaling will result in


appliances again falling across the A to G scale with a more even spread in each category. No appliance will reach an A+ or greater rating when the new scaling is introduced. With the exception of models that are


discontinued in 2021, all products, new and old, must use the new labels from 1 March. To allow time to prepare for these changes, manufacturers are already shipping products with both the current and the new labels to cede the market in


anticipation of the changes that all retailers will have to make in their stores. You will see a major shift in the average rating


of current appliances. Fridges will largely move from A ratings to F, dishwashers from A to E and washing machines from A to C. Of course, there will be models in other categories, but the bulk of ranges are likely to move as indicated. Whilst, of course, a fridge that is rated an A++


on 28 February and rated F on the 1 March is identical in terms of total energy consumption and running costs, these changes are likely to cause consumer confusion unless explained very clearly – and could lead to a consumer perception that appliances are becoming less efficient. This could result in a disincentive for consumers


to upgrade their appliances so it is extremely important that we communicate these changes and the reasons behind them very clearly to customers.


One other important labelling change that


applies across the UK, with the exception of Northern Ireland, is that all new labels will display a Union Jack flag, as opposed to an EU flag. Whilst this may seem insignificant, it is a legal requirement and therefore you must ensure that the correctly flagged and scaled labels are applied to all qualifying appliances in store and online from 1 March 2021. AMDEA has produced a trade toolkit that


provides all the information you need to brief your sales teams on what changes are required in store and online and your customers on what they need to look for to make meaningful comparisons. We have shared this toolkit with Euronics, RETRA and Sirius as well as national retail chains – all have responded very positively. If you would like access to this free information pack then please get in touch with AMDEA.


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