Business in Europe, Ecology, Energy, EU – Baltic States, Legislation, Markets and Companies

The main differences between the old and the new labeling system allows up to three classes (A+ to A+++) to be added on top of class A so as to provide consumers with more differentiation between products. In case the majority of the domestic appliances’ market reaches the upper two classes (A++, A+++), the Commission will review the classification. However, it is expected that classes A+++ are close to the technological limit of possible efficiency improvements, argued the Commission. MEMO/10/696, Brussels, 20 December 2010.

Another novelty is that the label is language free and will be added in the packaging of each appliance. It will allow retailers to easily attach the label to the appliances at the point of sale and avoid today's situation where appliances are often mislabeled.

The Commission is working on the adoption of new or updated energy labels for the following products: lighting, air conditioning, laundry driers, water heaters, boilers and vacuum cleaners.

Various labeling schemes

Televisions have seven classes of energy labels -from A to G- while the energy label on refrigerators, dishwashers and washing machines goes up to class A+++. The principle is that the energy label starts with the classes A to G when it is introduced for the first time on the market (which is currently the case for televisions). Refrigerators, dishwashers and washing machines have already been displaying the energy label with the A to G classes for more than 10 years. As a result of the technological improvement triggered by the label, around 90% of those products currently reach class A. Therefore, the new classes have been introduced on top of class A to allow consumers to differentiate "better than A" products.

Label formats A+ to F, A++ to E and A+++ to D become mandatory in 2014, 2017 and 2020, respectively. However, a TV achieving a class "better than A" can be labeled ahead of these dates. Currently only a few TV models achieve energy efficiency class "A", which are LED backlight technology, while most TVs are in energy efficiency classes "C" and "D", including "average" plasma TVs.

Labeling can save money

There is an example: if 10 years ago you bought a refrigerator-freezer with energy efficiency class "A" you would have saved around ˆ1000 over the life-time of the appliance compared to the purchase of a product with energy efficiency class "G".

If, e.g. at present you choose a 50 inch/127cm TV of energy efficiency class "A" instead of energy efficiency Class "D" (where a big bulk of TVs are at the moment), savings are around ˆ 35 per year (assuming 1kWh = 0,15 ˆ). A family buying an "A" 50 inch/127 cm "main" TV and an "A" 32 inch/81 cm "secondary" TV, the electricity savings are annually ˆ 50, compared to the choice "both are D", and ˆ 500 over ten years, if operated 4 hours per day.

Energy efficiency

It is often impossible to guarantee economy issues as soon as prices are not regulated in a free market economy. However, since the energy labels also provide information on how much electricity the appliance would typically consume, consumers will be able to calculate the expected electricity costs and relate it to prices.

The experience shows, for example, that for a household refrigerator-freezers or washing machines the price premium set in the top energy classes used to be higher when one or very few producers were producing products in that class; as soon as competition rises to a sufficient level, prices start to fall. Free competition does get prices down.

The labeling classes are defined with the view that the energy savings on the electricity bill during the use phase of the products should, after a reasonable period of time, compensate for the extra purchase costs of these products.

However, the energy label does not ban any product from the market but provides information and market transparency to assist consumers to make an informed purchasing decision. It ensures that all products are comparable using the same test methods and classification.

Equally, energy labeling aims at providing incentives for industry to develop further improved products and innovations beyond the "minimum" mandatory energy efficiency levels.

Label introduction at the point of sale

The new label will gradually be introduced at the point of sale, i.e. consumers are likely to see the old and the new label close to each other for several months at the point of sale. However, since an old class A or B appliance is equivalent to a new class A or B, consumers will still be able to compare products at the point of sale on the basis of both energy labels.

Differences between energy labels, ecolabels and ecodesign

Energy labels are adopted by the European Commission on a product by product basis (energy labelling Directive 2010/30/EU). They display ranking of products according to their energy efficiency consumption on an A to G scale, the A class (green) being the most energy efficient appliances and the G class (red) the least. Once the majority of products reaches class A, up to three classes (A+/A++/A+++) are added on top of class A.

Energy labels are mandatory for all appliances placed on the EU market and have to be clearly displayed on each appliance shown at the point of sale.

Ecolabels are voluntary labels adopted by the European Commission on a product-by-product basis (Ecolabel Regulation (EC/66/2010). The Ecolabel, i.e. the flower logo, may be displayed on products and promotional material on a voluntary basis if they respond to a list of the criteria pre-defined in implementing measures of the Commission and guaranteeing that the product is among the most environmentally friendly in his sector.

Ecodesign requirements are adopted by the European Commission on a product-by-product basis (ecodesign Directive EC/2009/125). They set requirements on the design of the products in order to improve their environmental impact. Ecodesign requirements are mandatory and must be met by all products to be allowed to be placed on the EU market. They are based on an assessment of the impact of the product on the environment throughout its life-cycle, starting from the production stage, through usage, distribution and disposal.

Further information on the energy label is available on the Commission's website: