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MEPS − Televisions April 2005
Page 5
A study produced for the Energy Efficiency and Conservation Authority by
Wise Analysis Ltd
The effect of the Trans-Tasman Mutual Recognition Agreement means that goods that are
acceptable for sale in one jurisdiction can legally be sold anywhere in Australia and New
Zealand. If Australia has a mandatory MEPS regime − which now seems unlikely − and New
Zealand does not, theoretically it would be possible to import non-compliant TVs to Australia
although the dangers are more apparent than real.
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.