MEPS − Televisions | April 2005 |
The effect of the
The introduction of a MEPS scheme would see annual energy savings increase from 8 GWh in 2006 to 29 GWh in 2025, with a cumulative saving in this period of 392 GWh. In addition avoided power costs would save additional carbon charges with a net present value of the cumulative savings till 2025 of $10.78 million.
The cost of applying MEPS would be largely absorbed by retailers and consumers, but could attract annual administration costs of $100,000 with an NPV of $2.2 million. Compared with the NPV of the electricity saved of $8.3 million, there is a substantial benefit cost ratio of almost four. If the savings in carbon charges are included the benefits are almost doubled.
Although Australia originally aimed to introduce a combined MEPS/labelling scheme by 2006, recent stakeholder feedback in Australia has opposed mandatory labelling, and it is now unlikely to proceed, although voluntary labelling and MEPS will still go ahead. It would still be advisable to keep our alignment with Australia, and it is recommended that New Zealand introduce a similar scheme to whatever is finally agreed to in Australia.
Further consultation with the importers and major retailers will be necessary to ensure that there is no undue resistance to the scheme, to maximise compliance and adherence to the principles of the scheme. It should be possible to introduce such a MEPS and labelling scheme by the end of 2006 if decisions and consultation begin as soon as possible.
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A study produced for the Energy Efficiency and Conservation Authority by
Wise Analysis Ltd