Introduction to Standards and Labeling program

The Objectives of Standards & Labeling Program is to provide the consumer an informed choice about the energy saving and thereby the cost saving potential of the marketed household and other equipment. This is expected to impact the energy savings in the medium and long run while at the same time it will position domestic industry to compete in such markets where norms for energy efficiency are mandatory. The scheme was launched by the Honorable Minister of Power in May,2006.

List of appliances under voluntary and mandatory Scheme
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Objectives of Standards & Labeling Program

• To achieve energy savings at national level through promoting the use of energy efficient products.

• To prohibit manufacture, sale and import of such equipment, which does not conform to the standards.

• To provide the consumer an informed choice about the energy saving and cost saving potential of relevant products.

• To ensure that only energy efficient equipment and appliances would be made available to the consumers.

Benefits of Star Labeling

• Information on energy consumption is made easily available.

• An initiative by government and industry to promote energy efficient appliances.

• Labeling of products avail information at the point-of-sale.

• Reduce overall energy consumption and also energy bills for the consumer.

• Help customers to make wise decision to choose energy-efficient products and appliances.

• Encourage industries to optimize product performance and eliminate inefficient models.

Evolution of Standard and labeling (S&L) program in India

1. 2001-2002 Enactment of EC Act & Establishment of BEE
2. 2006 Launch of S & L program as Voluntary Labeling program for AC & Refrigerators
3. 2007-2010 Twelve Appliances included in voluntary labeling Programme, Four mandatory in 2010
4. 2011 Endorsement Level launched 2011-2016 Twenty One Appliances in labeling program, Seven mandatory appliances
5. 2017-2018 Ten Mandatory Appliances

What is Standard and Labeling -

Definition:-

• Standard:-
  Energy-efficiency standards are procedures and regulations that prescribe the energy performance of manufactured products, sometimes prohibiting the sale of products that are less energy efficient than the minimum standard, often called Minimum Energy Performance Standards (MEPS).
  
  Energy-efficiency standards can be Voluntary or mandatory and Technical regulation or technical specification Standards commonly encompasses two meanings:
  • Well-defined test protocols to obtain a sufficiently accurate estimate
  • Determine value of energy performances.
     
• Label:
  Energy-efficiency labels are informative labels affixed to manufactured products to describe the product’s energy performance (usually in the form of energy use, efficiency, or energy cost); these labels give consumers the data necessary to make informed purchases.

There are two types of labels:

1. Performance/Comparative

Allow consumers to compare the energy consumption of similar products, and factor lifetime running cost into their purchasing decision. Performance/Comparative label is used in mandatory and voluntary electrical appliance. Example- Tube light, Window and split air conditioning, water heater(geyser), Ceiling Fan, Distribution Transformer etc.

2. Endorsement

Provide a ‘certification’ to inform prospective purchasers that the product is highly energy efficient for its category. Endorsement label is used for computer/laptop and office equipment.

Reasons for labeling -

• Consumer choice information
• Promoting energy efficiency through performance benchmarks
• Encouraging continual improvement
• Promoting certification
• Assistance in monitoring

Roles & Responsibilities of Retailers

• Always stock star labelled products with latest validity period.
• Ask Manufacturer to provide labels with right validity.
• Explain Energy Star Label & Energy Efficiency
• Encourage consumers to buy star rated appliances.
• Display the cost savings through BEE Mobile App to the consumers.
• Help consumers to make smart choice of appliances (like 5 star appliance).
• Display of label in retail shops

Importance of Labeling for Retailer

• Credibility - Increases the authenticity of the retailer
• Customer Loyalty -Enhances Consumer Confidence
• Manufacturers Guarantee - Guarantee and Warranty by manufacturer
• Increased Market Awareness - Informed consumer choices

Importance of Labeling for Consumer

• Energy Savings - Consumes less electricity
• Reduced Electricity Bills - Best value for money
• Manufacturers Guarantee - Guarantee and Warranty by manufacturer
• Improved Performance - Better Product