Singapore retailers to stock more energy efficient appliances

Amresh Gunasingham, Straits Times 12 Sep 09;

THE National Environment Agency hopes to pare down the $1 billion Singaporeans spend on utilities bills each year - by getting them to buy appliances which use less energy.

At a ceremony at Marina Square yesterday, 16 shops and suppliers, including major retailers Best Denki, Gain City and Harvey Norman, agreed that within a year, at least 60 per cent of air-conditioning systems, refrigerators and clothes dryers in their selection would be the most efficient models available, up from one-third now.

Such appliances score an 'excellent' rating under the NEA's Mandatory Labelling Scheme.

The scheme was introduced last year for air-conditioners and refrigerators, which account for half of an average household's utility bill.

At yesterday's event, Dr Amy Khor, Senior Parliamentary Secretary for the Ministry of the Environment and Water Resources, said retailers play an important role in weaning out energy-guzzling models.

'By increasing the proportion of energy-efficient products on the market, we hope to influence consumer demand,' she said.

Well-trained sales staff who could help customers make informed purchasing choices was also key, she said.

Studies conducted by the NEA showed that the most energy-efficient refrigerator on the market costs $100 more than the least efficient one, but this initial expense is more than made up for in long-term savings.

Over an average 10-year lifespan, the greener model would rack up $1,300 in usage bills, about half that of the less efficient model.

NEA chief executive officer Andrew Tan noted that going green could give consumers some protection from rising electricity tariffs.

'By transforming the market, we are giving people greater control irrespective of electricity prices,' he said.

The NEA estimated that if consumers here switched to more efficient appliances, they could save at least $20 million annually.

But retailers said the downturn is impeding efforts.

Mr C.J. Raj, director of Best Denki Singapore, has seen a 50 per cent dip in the 55 units of energy-efficient air-conditioning units sold at its stores every month, with customers opting for less efficient models which cost several hundred dollars less.

This despite a life-cycle cost of $12,000 for the cheaper model, compared with $8,000 for the most energy-efficient one.

'Consumers are paying more attention to the value proposition of products. They are not so keen on the long-term perspective, but on short-term gain,' he said.

Singapore's retailers and suppliers to provide more energy efficient appliances
Cheryl Lim, Channel NewsAsia 11 Sep 09;

SINGAPORE: 16 major retailers and suppliers promised on Friday to provide more energy efficient appliances to Singaporean consumers.

These include companies such as Best denki, Courts, Gain City and Harvey Norman, as well as suppliers such as BSH Home appliances, Carrier, CASA, DAIKIN, Fisher and Paykel, LG Electronics, Miele, Mitsubishi Electric, Wo Kee Hong Marketing, Panasonic, Samsung and Sanyo.

The move is in line with a landmark voluntary agreement signed with the National Environment Agency (NEA) and a partnership with the Housing & Development Board and Energy Market Authority.

Under the agreement, retailers and suppliers are expected to voluntarily commit to targets set out by the NEA, including retiring stock of energy inefficient models and ensuring that energy efficient models make up at least 50 per cent of their model range within 6 months and 60 per cent of their model range by September 2010.

"Suppliers and retailers are really gatekeepers. In the sense that they can help us retire and weed out, the less energy efficient products from the market. Increase the proportion of more energy efficient products and in this way influence consumer demand," said Dr Amy Khor, senior parliamentary secretary, Ministry of Environment and Water Resources.

Consumers will soon see more ticks, representing greater energy efficiency, on more models of electrical appliances in stores.

Gain City Best-Electric, one of the retailers involved in the agreement said that the move is a natural progression for them.

Sales of their energy efficient inverter air-conditioners had climbed up from 17 to 39 per cent between 2006 and 2008.

"When consumers come to our stores, they tend to choose energy efficient appliances, after being educated on the benefits of the cost savings that come with it. They will generally tend to look for a three to four tick air conditioner," said Evonne Lee, marketing manager, Gain City Best-Electric.

The year-long agreement is aimed at paving the way for a minimum standard for energy efficient appliances by 2011. Retailers and Suppliers will have the option to extend the agreement after it ends.

The agreement is also part of the 10 per cent Energy Challenge, which this year is focused on making energy efficient home appliances more readily available to consumers with the help of retailers and suppliers.

Singapore is working towards a 35 per cent reduction in energy consumption from energy levels in 2005.

- CNA/sc