New energy rating for white goods to help cut your bills
New ratings system for large electrical goods could result in household bills being cut by as much as £100 a year
By Toby Walne, Financial Mail on Sunday
Published: | Updated:
A new ratings system for large electrical goods is being introduced this month in a move that could result in household bills being cut by as much as £100 a year.
It is part of a shake-up of the efficiency grading system by the Government for new products such as fridges, washing machines and TVs. It involves new energy labels stuck on the side of ‘white goods’ that must adhere to tougher energy efficiency standards than were previously demanded.
The old labelling system, which ranked goods from a lowly ‘D-‘ to a top rated ‘A+++’, had been criticised for lulling consumers into thinking that products were more efficient than they really were.
Shake-up: The new system now ranks goods as low as ‘G’ but only as high as ‘A’
The new system now ranks goods as low as ‘G’ but only as high as ‘A’. Many shoppers may be confused at first as the new grading still uses many of the same letters. But the appliances that were previously being sold with ‘A’ or ‘B’ grade could now only be rated a ‘C’ or below.
Dee Fernandes, of the Association of Manufacturers of Domestic Appliances, says: ‘These energy ratings are starkly different from what were being used before.
‘It leaves more room for improvement at the top end of the scale to encourage manufacturers to make more efficient products that will save customers money.
‘The grades are not just for measuring energy efficiency but whether goods offer eco-modes and replacement parts are easy to buy if you want to repair them. Initially you might find that most goods are rarely ranked much above ‘C’.’
The new grades will be shown with coloured stickers on the side of goods and on sales labels just as the previous measurements were. These colours will match up to the changed grades. A ‘G’ will be accompanied with a red warning. Efficiency improvements then graduate up through orange and yellow, before finally turning to green ‘A’ for the most efficient.
The changes are being introduced to keep in line with a European Union shake-up of the system. Energy label ratings were first introduced in 1995 and these new grades are designed to reflect how energy efficiency has moved forward – with the old ‘A’ grades becoming a standard expectation.
Initially, only washing machines, dishwashers, fridges, freezers, TVs, some tumble driers and lighting will get the new energy labels. Other items including ovens are to be included later in the year. The Department for Business, Energy & Industrial Strategy is in charge of introducing the labels which will be rolled out from this month. But it will not be until the summer that it will become law for some goods to display the new label.
The department believes the average home could save at least £75 a year on their energy bill by taking heed of these new energy efficiency grades. Annual savings of £100 are expected for homes replacing all inefficient items two decades old. The requirement of manufacturers to provide spare parts when goods fail is likely to extend their life by as much as ten years. Michael Briggs, head of sustainability at the consumer group Which?, says: ‘Our research has found that all too often electrical items are thrown out due to faults that cannot be fixed. A key appeal of this new grading system is that it not only encourages greater energy efficiency, but also means more spare parts are available.’
Shoppers should be able to discover if an item being sold is using the tough new grading system because the label will not contain any ‘+’ or ‘-‘ signs as the old labels did. The new sticker should also include a ‘QR’ code in the top righthand corner of the image that allows users to look up specific details about the item with a reader app on their smartphone. Additional information, such as total energy and possible water consumption, will also be included.
The Department for Business, Energy & Industrial Strategy says: ‘Although the label was introduced following a European Union directive we hope to go much further with it – and later include a wider range of items, such as all forms of lighting and heating for the home.’ It adds: ‘Now the UK has left the EU, the energy efficiency label that once had an EU flag on it is being replaced with the Union Jack.’
THIS IS MONEY PODCAST
How to save or invest in an Isa – and why it’s worth doing
Is the UK primed to rebound… and what now for Scottish Mortgage?
The ‘escape velocity’ Budget and the £3bn state pension victory
Should the stamp duty holiday become a permanent vacation?
What happens next to the property market and house prices?
The UK has dodged a double-dip recession, so what next?
Will you confess your investing mistakes?
Should the GameStop frenzy be stopped to protect investors?
Should people cash in bitcoin profits or wait for the moon?
Is this the answer to pension freedom without the pain?
Are investors right to buy British for better times after lockdown?
The astonishing year that was 2020… and Christmas taste test
Is buy now, pay later bad news or savvy spending?
Would a ‘wealth tax’ work in Britain?
Is there still time for investors to go bargain hunting?
Is Britain ready for electric cars? Driving, charging and buying…
Will the vaccine rally and value investing revival continue?
How bad will Lockdown 2 be for the UK economy?
Is this the end of ‘free’ banking or can it survive?
Has the V-shaped recovery turned into a double-dip?
Should British investors worry about the US election?
Is Boris’s 95% mortgage idea a bad move?
Can we keep our lockdown savings habit?
Will the Winter Economy Plan save jobs?
How to make an offer in a seller’s market and avoid overpaying
Could you fall victim to lockdown fraud? How to fight back
What’s behind the UK property and US shares lockdown mini-booms?
Do you know how your pension is invested?
Online supermarket battle intensifies with M&S and Ocado tie-up
Is the coronavirus recession better or worse than it looks?
Can you make a profit and get your money to do some good?
Are negative interest rates off the table and what next for gold?
Has the pain in Spain killed off summer holidays this year?
How to start investing and grow your wealth
Will the Government tinker with capital gains tax?
Will a stamp duty cut and Rishi’s rescue plan be enough?
The self-employed excluded from the coronavirus rescue
Has lockdown left you with more to save or struggling?
Are banks triggering a mortgage credit crunch?
The rise of the lockdown investor – and tips to get started
Are electric bikes and scooters the future of getting about?
Are we all going on a summer holiday?
Could your savings rate turn negative?
How many state pensions were underpaid? With Steve Webb
Santander’s 123 chop and how do we pay for the crash?
Is the Fomo rally the read deal, or will shares dive again?
Is investing instead of saving worth the risk?
How bad will recession be – and what will recovery look like?
Staying social and bright ideas on the ‘good news episode’
Is furloughing workers the best way to save jobs?
Will the coronavirus lockdown sink house prices?
Will helicopter money be the antidote to the coronavirus crisis?
The Budget, the base rate cut and the stock market crash
Does Nationwide’s savings lottery show there’s life in the cash Isa?
Bull markets don’t die of old age, but do they die of coronavirus?
How do you make comedy pay the bills? Shappi Khorsandi on Making the…
As NS&I and Marcus cut rates, what’s the point of saving?
Will the new Chancellor give pension tax relief the chop?
Are you ready for an electric car? And how to buy at 40% off
How to fund a life of adventure: Alastair Humphreys
What does Brexit mean for your finances and rights?
Are tax returns too taxing – and should you do one?
Has Santander killed off current accounts with benefits?
Making the Money Work: Olympic boxer Anthony Ogogo
Does the watchdog have a plan to finally help savers?
Making the Money Work: Solo Atlantic rower Kiko Matthews
The biggest stories of 2019: From Woodford to the wealth gap
Does the Boris bounce have legs?
Are the rich really getting richer and poor poorer?
It could be you! What would you spend a lottery win on?
Who will win the election battle for the future of our finances?
How does Labour plan to raise taxes and spend?
Would you buy an electric car yet – and which are best?
How much should you try to burglar-proof your home?
Does loyalty pay? Nationwide, Tesco and where we are loyal
Will investors benefit from Woodford being axed and what next?
Does buying a property at auction really get you a good deal?
Crunch time for Brexit, but should you protect or try to profit?
How much do you need to save into a pension?
Is a tough property market the best time to buy a home?
Should investors and buy-to-letters pay more tax on profits?
Savings rate cuts, buy-to-let vs right to buy and a bit of Brexit
Do those born in the 80s really face a state pension age of 75?
Can consumer power help the planet? Look after your back yard
Is there a recession looming and what next for interest rates?
Tricks ruthless scammers use to steal your pension revealed
Is IR35 a tax trap for the self-employed or making people play fair?
What Boris as Prime Minister means for your money
Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.