MINIMUM ENERGY EFFICIENCY STANDARDS

MINIMUM ENERGY EFFICIENCY STANDARDS: 7.

Mr Edwin Khew Teck Fook asked the Minister for the Environment and Water Resources in light of the implementation of the mandatory Energy Labelling Scheme for airconditioners and refrigerators from 1st July 2007, whether the Ministry will subsequently mandate minimum energy efficiency standards to ensure that only energy-efficient appliances are sold and installed.

Assoc. Prof. Dr Yaacob Ibrahim: Sir, the hon. Member has asked whether there will be minimum energy efficiency standards for household appliances. As I have mentioned during the COS debate in March, mandatory energy labelling for home airconditioners and refrigerators will come into effect from 1st July. This scheme will provide consumers with the necessary information to make an informed choice, knowing both the upfront cost and the running cost of the appliance.

This is an important and necessary first step in creating greater consumer awareness of the need to be energy-efficient. As we all know, Singapore is almost totally reliant on imported natural gas and oil to provide for all our energy needs. We need to be energy-efficient to avoid unnecessary wastage of energy and to remain competitive.

Minimum Energy Performance Standards (MEPS) is a policy tool adopted in some countries to remove inefficient electricity-consuming goods from the marketplace. It is an effective instrument to increase the average efficiency of a product class as the least energy-efficient products are prohibited. However, there may not be a need to implement MEPS if the public responds positively to the implementation of the Minimum Energy Labelling Scheme (MELS). As less energy-efficient products become less

Column: 390

popular, we hope that importers will cease to bring in such products into our market, and this will avoid imposition of further regulations on businesses.

NEA will therefore focus on the implementation of mandatory energy labelling for now. We will study the need for MEPS after a sufficient period of time to assess the market situation.

Mr Edwin Khew Teck Fook (Nominated Member): Sir, I just like to ask the Minister when is the soonest that we can actually adopt mandatory labelling of appliances. Because the longer our households are using them, the longer these items are going to be around. Mandatory labelling, basically, means that we label all our products, even those that are inefficient. Yes, we are providing our consumers with a choice, but the thing is that we are not ensuring that everybody is buying labelled products that meet certain minimum requirements. I think this is a point of concern. If we would like to demonstrate that Singapore as a whole is energy-efficient, it is a small step to go into mandatory usage, at least minimum standards. Once we get to the mandatory labelling stage, it is a small step, and I encourage the Minister to take the next step sooner than later.

Assoc. Prof. Dr Yaacob Ibrahim: Sir, I share the Member's sentiment about the need for minimum energy efficiency standards. Some countries which have adopted that as a tool have shown that it has proven to be effective

in removing the inefficient products and people therefore adopting more energy-efficient appliances. But we want to take a cautious step as we want to make sure that businesses are able to respond properly and we do not want to introduce a bit of rigidity into our market.

The labelling scheme is an important step. We are making it mandatory this

Column: 391

year, 1st July, because when we started it, the response was quite low. We did a survey and found not many companies are prepared to come on board on a voluntary basis. So, by making it mandatory from 1st July, they have to put the label to indicate the energy that is required for the product, so that consumers can make an informed choice. If we take the next step, which is to establish a minimum standard, any products that require energy beyond a certain level are not allowed in Singapore, we will have to do it very carefully because it means that companies are forced to change some of their product lines. But it is certainly on the table. We will study this very carefully. When will it happen? I cannot give the Member a certainty. But I will assure the Member that NEA will study this carefully as we roll out the energy labelling from 1st July onwards to see when is the right time for us to begin to talk about MEPS. But we will consult the industry widely so that we understand their concerns before we move on to the Minimum Energy Performance Standards.