An examination of the effectiveness of the EU minimum standard on cold appliances: the British case

This paper investigates the effectiveness of the minimum standard on cold appliances using the British market as a case study. Monitoring the effectiveness of policy is an essential part of securing energy savings. With a second round of minimum standards on cold appliances now on the political agenda of the European Commission, it is also important to identify any lessons, which can be learned from the implementation of the first round of minimum standards. The timing and magnitude of market transformation as a result of the minimum standard is shown in the context of historical rates of change, the aspirations of Directive 96/57/EC and the development in price. The analysis shows that the minimum standard is resulting in substantial energy savings, but that retailers and manufacturers delayed efficiency improvements to the UK market for as long as possible. More than one year after the standard came into effect, a significant proportion of sales were not meeting the standard. Importantly, real prices continued to fall even as substantial transformation of the cold appliance market was taking place contrary to the argument that energy efficiency necessarily costs money and clearly demonstrating that society could have afforded more ambitious standards.