Proposal for a EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE on energy efficiency requirements for household electric refrigerators, freezers and their combinations
Date: 1994-12-07
Institutions: European Commission
Subjects: European standard, energy consumption, energy saving, household electrical appliance, marketing standard, technical standard

COMMISSION OF THE EUROPEAN  COMMUNITIES 

COM(94) 521  final 

Brussels,  07.12.1994 

94/0272 (COD) 

Proposal  for a 
EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE 
on energy efficiency  requirements for household electric refrigerators, 
freezers and their combinations 

(presented by the Commission) 

C O N T E N TS 

Explanatory  Memorandum 

I. 

II. 

Energy  Efficiency  Background 

Initiatives  on Household  Equipment  and 
Refrigeration  Appliances 

III. 

Setting the Efficiency  Standards 

IV. 

Impact  on  the  Industry 

V. 

Administrative  Arrangements  Proposed 

VI. 

The Need  for  Community  Legislation  and 
Consultations  with  Interested  Parties 

VII. 

Scope  of  the Proposed  Directive 

VIII. 

Results  Expected  from  the Proposed  Directive 
and Accompanying  Measures 

IX. 

Impact on  Society  as a Whole 

Proposal  for  a European  Parliament  and Council  Directive 

Page 

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6 

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14 

16 

EXPLANATORY  MEMORANDUM 

I.  Energy  Efficiency  Background 

Improving  the  efficiency  with  which  energy  is  consumed  has long been  a central  theme of 
energy policy within the European Community.  Improved  energy efficiency  reduces energy 
consumption,  thereby  reducing the use of finite  energy  resources as well  as the  dependence 
on  energy  resources imported  from  outside the Community.  There is also a  corresponding 
reduction in the generation of pollutants associated with energy production and use, including 
emissions  to  the  atmosphere  of  carbon  dioxide  (C02),  the  major  cause  of  the  greenhouse 
effect.  As described  below,  the Member  States agreed  in  October  1990 to  stabilise  carbon 
dioxide  emissions  in  the  Community  by  the  end  of  the  century  and  increased  energy 
efficiency  has a key role to play if this objective is to be achieved.  Moreover,  there is very 
considerable scope for energy efficiency  improvements which are economic, that is the value 
of the energy saved repays the cost of the efficiency  improvements within a few years or less. 
Such measures can therefore  improve the competitive position  of industry  and commerce in 
the Community, since less energy is used for a given output and, by similarly reasoning, they 
can also improve the economic welfare of domestic energy users.  A series of initiatives have 
therefore  been  agreed  at Community  level  on improving  energy  efficiency. 

There is also an internal  market dimension to some energy efficiency  initiatives, in that they 
can involve requirements for energy-using equipment which is traded within the Community, 
for  example  domestic  appliances. 
In  order  to  prevent  potential  barriers  to  trade,  these 
requirements need to be harmonised  at Community  level.  The internal  market also requires 
industry and commerce to be operating under similar conditions across the Community as far 
as practicable,  thus reinforcing  the need  for  comparable  efforts  between  Member  States on 
energy and associated environmental initiatives.  The precise framing  of measures to improve 
energy efficiency  however, will often need to take account of differing  national circumstances 
and opportunities and, where there is no overriding need for action at Community level, may 
be  left  to  national  competence,  in  line  with  the  principle  of  subsidiarity.  These  different 
considerations,  of  common  energy  and  environmental  objectives,  of  internal  market 
considerations,  and of the principle  of  subsidiarity,  provide the background  to the evolution 
of energy  efficiency  initiatives,  as described  in the following  paragraphs. 

On  15 January  1985(1) the Council adopted a Resolution inviting the Member States to pursue 
and increase their efforts  to promote the rational  use of energy.  Vigorous efforts  on energy 
saving were again  called  for  in  the Council's Resolution  of  16 September  1986(2) on energy 
policy  objectives  for  1995,  which  included  the  objective  of  improving  the  efficiency  of 
energy use by at least 20% by that date.  In the ensuing period of low energy prices, however, 
it  became  clear  that  the  level  of  effort  had  in  general  declined  and  that  the  1995  energy 
efficiency  objective would not be reached, despite the continued underlying justifications  for 
improving  energy  efficiencies  and,  in  particular,  the  increasing  concerns  related  to  the 
greenhouse  effect. 

These concerns were addressed in the Single European Act, which entered into force  in 1987, 
which  added  an  Article(3)  to  the  Treaty  requiring  Community  actions  relating  to  the 
environment  to  have  among  their  objectives  the  prudent  and  rational  utilisation  of  natural 
resources and the protection  of the  environment. 

(i) 

(2) 

(3) 

OJNoC20,  22.1.1985, p.  1. 
OJNoC241,  25.9.1986, p. 1. 
Article  130r of the  Single European  Act,  1987. 

Because  of  the  particular  importance  of  electricity  in  the  energy  sector,  with  electricity 
generation accounting for about 35% of k tal primary energy use and about 30% of man-made 
C02 emissions to the atmosphere, the Ce  ocil adopted a Decision on 5 June 1989 establishing 
a  Community  action  programme  for  irr proving  the  efficiency  of  electricity  use, (PACE)(4T 
This  Decision  calls  for  the  management  of  actions  within  the  M^riber  States,  with  the 
Commission  playing  a coordinating role and,  where appropriate,  leading its own actions. 

On  29  October  1990  a  combined  Energy/Environment  Council  agreed  the  objective  of 
stabilising  C02  emissions  in  the  Community  by  the  year  2000  at  1990  levels.  A 
Communication from  the Commission to the Council(5) setting out a strategy to help achieve 
this objective  was subsequently  prepared  and  presented  to the Council. 

In particular, a major role in achieving C02 emission reductions is foreseen through improved 
energy efficiency  and on 29 October  1991 the Decision establishing the SAVE programme^, 
to give a new impetus to the promotion  of energy efficiency  in the Community, was adopted 
by  the  Council.  This  document  sets  out  the  kind  of  actions  to  be  pursued  under  the 
programme, which include initiatives in all energy consuming areas of the economy, (homes, 
buildings,  the  transport  sector,  industry,  etc.),  and  the  methods  to  be  adopted  for  their 
promotion, (information, voluntary agreements, legislation on standards, training, promotional 
campaigns, etc).  A specific  proposal  for  a Council Directive was subsequently  made by the 
Commission  in  this framework  requiring  action,  in line with  the  subsidiarity  principle,  by 
Member  States  to  improve  energy  efficiency  in  a  series  of  areas,  including  the  energy 
certification  of buildings, billing actual  energy  use in multioccupancy  buildings, the regular 
inspection  and  boilers  and  promoting  energy  audits  in  businesses.  The  Directive(7)  was 
adopted  on  13 September  1993. 

II. 

Initiatives on Household  Equipment  and Refrigeration  Appliances 

As noted  above however,  certain  energy  efficiency  measures, in particular those applying to 
tradeable goods, must be established on a common Community-wide basis, in order to prevent 
potential  barriers to trade.  In this  respect,  both the PACE  and  SAVE  programmes  foresee 
initiatives  to  improve  the  energy  efficiencies  of  domestic  energy  using  equipment.  A 
Directive establishing energy efficiency  performance  standards for domestic boilers, the first 
such directive of its kind, was adopted on 21 May  1992(8) and a Framework Directive on the 
labelling  and  other  provision  of  standard  information  on  the  energy  use  of  household 
appliances  was  adopted  by  the  Council  on  22  September  1992(9).  The  Commission  has 
adopted  on  21  January  1994(10)  the  Application  Directive  for  labelling  of  household 
refrigeration  appliances. 

Household  appliances account for about two thirds of electricity consumption in the domestic 
sector  and  offer  significant  potential  for  further  improvements  in their  energy  efficiencies. 
A workshop was therefore  organised by the Commission in November  1990 to examine how 
best to try to realise the potential  improvements  in  appliance  efficiencies.  All  major  actors 
in  this  area,  including  representatives  of  appliance  manufacturers,  national  administrations, 
retailers,  electricity  supply  companies,  consumers,  standard  bodies,  researchers  and  other 

(4)  OJ No L  157, 9.6.1989,  p.  32 - the  acronym  is from  the name  in French:  Programme 
d'action  communautaire visant  à améliorer  l'efficacité  de l'utilisation  de l'électricité. 

(5)  SEC(91)  1744 of  14 October 1991. 
(6)  OJ No  L  307,  8.11.1991,  p.  34  -  Specific  Actions  for  Vigourous  Energy  Efficiency, 

Council Decision  of 29 October  1991 (91/565/EEC). 

(8) 

(7)  OJ No L 237, 22.9.1993,  p. 28. 
OJ No L  167, 22.6.1992, p. 17. 
OJ No L 297,  13.10.1992, p. 16. 
OJNoL45,  17.2.1994, p. 1. 

(10) 

(9) 

experts  were  invited,  and  over  120  participants  attended. 
In  the  light  of  the  discussions 
during  this  workshop,  the  Commission  has  been  following  a  dual  approach  of  firstly 
promoting greater awareness by consumers of the availability of more energy efficient  models 
of appliances, and secondly by directly promoting the production of more efficient  appliances 
by  manufacturers.  The  labelling  and  standard  product  information  Framework  Directive 
mentioned above, together with Application Directives for the different  appliances which will 
follow,  correspond to the first approach.  On the second approach, that is directly  promoting 
energy  efficiency  improvements  at  the  production  stage,  again  two  lines  of  action  were 
pursued.  The  first  concerned  work  on  the  setting  of  "floor  level"  mandatory  energy 
efficiency  performance  standards for domestic appliances which must be met or exceeded by 
manufacturers  and  the  second  concerned  investigating  the  possibilities  for  agreements by 
appliance  manufacturers  to  improve  appliance  efficiencies  on  a voluntary  basis.  It  is  also 
possible that both lines could be adopted together; a mandatory requirement for  a floor  level 
of  efficiencies  and  a voluntary  agreement  for  further  improving  appliances above this floor 
level. 

To  date  the  Commission's  efforts  in  this  area  have  been  concentrated  on  domestic 
refrigeration  appliances01} because they  are the most  important  energy  consuming  domestic 
appliance  with  the  greatest  energy  savings  potential,  and  also  because  procedures  for 
measuring  the  energy  use  of  such  appliances  have  been  agreed(12).  Moreover,  in  January 
1992,  the  Commission  received  a  notification  from  the  Netherlands  administration  of  its 
intention  to  introduce  mandatory  efficiency  standards  for  domestic  refrigeration  appliances 
sold in their country. As a potential  barrier to free  trade in the Community, the Commission 
suspended  this  initiative,  with  the intention  of  formulating  a Community-wide  proposal  for 
standards for  such  appliances,  as empowered  under Directive  83/189/EEC(I3). 

In the light of this development, the Commission  organised a second workshop in April  1992 
to  discuss  the  methodologies  for  setting  energy  efficiency  standards,  in  particular  for 
refrigeration  appliances, to which all  interested  parties were again  invited.  At the workshop, 
a  number  of  representatives  of the  appliance  manufacturing  industry,  and  of  some Member 
States,  stressed  the  need  to  continue 
to  fully  investigate  the  possibilities  for  voluntary 
agreements by the industry to improve appliance efficiencies.  Exploratory discussions on this 
topic  were  therefore  held  between  representatives  from  the  industry  and  in  particular  of 
CECED,  the  European  association  of  appliance  manufacturers,  and  Commission  officials 
assisted  by various experts. 

A number of meetings were held  and letters exchanged  from  May to October  1992, with the 
Member  State administrations being kept continually  informed.  Throughout the discussions, 
the  Commission  maintained  that  a  satisfactory  voluntary  agreement  would  have  to  include 
three main elements: i) commitments by manufacturers  accounting for most of the appliances 
sold  on  the  Community  market  (say  80% to  90%  at  least),  ii)  quantified  commitments  to 
significant  improvements  in the  energy  efficiencies  of the  appliances they  produce  over a 
reasonable  timescaie,  and  iii)  an  effective  monitoring  scheme  with  some  degree  of 
independence to monitor the  energy  efficiency  improvements  achieved. 

The  energy  efficiencies  of  refrigeration  appliances  currently  available  on  the  market  vary 
considerably  for the same type and volume of appliance,  some models indeed  using one half 
or  less  electricity  than  other  models.  Nor  are  more  efficient  appliances  necessarily  more 
expensive, reflecting  the fact that improvements in efficiencies  can be achieved for  relatively 
low  costs.  Furthermore,  improving  the  energy  efficiency  of  refrigerators  is  economically 
interesting,  since  the  value  of  the  electricity  saved  overshoots  the  little  extra  cost  for  the 
consumer.  The payback  time for  such an improvement  is in the order  of one to  two years 

( i i) 

(12) 

(13) 

Refrigerators,  freezers,  and  combinations  of these. 
European  Committee for  Standardisation  Standard  EN  153 of May  1990. 
OJ No L  109, 26.4.1983, p. 8 and  OJ No L  81, 26.3.1988, p. 75. 

and  thus, -given  the  average  12  years-lifetime  of  a  refrigerator,  this  will  result  hi  a  set 
economic  advantage  for  the  consumer. 

The  provision  of  information  on  the  energy  consumption  of  refrigeration  appliances,  as 
required under the relevant Directives  described  above, will  make consumers more'aware of 
this aspect in their purchasing decisions, but the increase in the sales of more energy  efficient 
appliances resulting from  this is likely to be somewhat  limited.  This is because other factors 
are in general  more important  for  the consumer in arriving  at the purchase decision,  such as 
the size, appearance,  and  particular facilities  offered  by the appliance.  A mandatory  "floor 
level" efficiency  requirement is therefore needed  to prevent  the continued  sale of appliances 
on the market  with  low energy  efficiencies.  The labelling  and  product  information  scheme 
is nevertheless required to enhance competition and awareness on energy efficiency  above the 
"floor  level",  and the two measures are therefore  seen as both  complementary  and essential. 
The present  proposal for  a Directive indeed has been drafted  so as to be compatible with the 
Application  Directive  on  the  energy  labelling  and  provision  of  information  for  domestic 
refrigeration  appliances. 

The  refrigeration  appliance  manufacturing  industry  are  having  to  face  another  challenge 
motivated by environmental  protection measures, namely the phasing out of the use of CFC's 
(chlorofluorocarbons),  active  in  destroying  the  ozone  layer  in  the  atmosphere.  Substitute 
materials for  both  the insulation  and  for  the cooling  circuit fluid in  refrigeration  equipment 
have been  developed, which  only reduce overall  appliance efficiencies  by a few percent and 
in  some  cases  not  at  all.  Some  commentators  have  raised  this  issue  as  a  complication  in 
meeting  energy  efficiency  standards  but  since  the  proposed  efficiency  standards  can  be 
relatively  easily  met  using  existing  technology,  the  phasing  out  of  CFC's  does not  present 
of  itself  a  significant  problem  in  this  respect.  It  is  perhaps  true  however  that  specialised 
design and product development staff in the industry are currently occupied with the problems 
of  introducing  CFC  substitutes,  giving  less time  for  other  new requirements,  although  it  is 
also true that they  should often  be able to work on developing models with improved  energy 
efficiencies  at the  same time. 

III.  Setting the Efficiency  Standards 

Because the electricity  consumption of refrigeration  appliances is a function  of their volume, 
as  well  as  their  performance  characteristics  (eg.  star  rating  or  cooling  power,  automatic 
defrosting,  etc.),  efficiency  standards in the proposed  Directive are established  as a  function 
of  volume,  with  a  different  equation  for  each  defined  category  of  appliance.  In  fact  the 
"adjusted  volume",  which  is  a  weighted  sum  of  the  volun  *,s of  the  different  temperature 
compartments in a given  appliance,  is used  as the main  ind^  •* u^nt variable.  The  different 
categories  reflect  the  main  types  of  appliance  based  on  *  t \  performance  features.  For 
example, a distinction is made between a refrigerator  wi*h  v.  „ star  ' - •"en food compartment 
and  one  with  a three  star  compartment.  The first ty; ;  -.-,' compari  nt  is  to  keep  food  at 
-6°  C or below, whilst the second has an upper temperature limit of - i  ° C  The appliances 
therefore  have  different  performance  specifications  and  can  be  expected 
J  have  different 
energy consumptions  Appliar ^es within a category however can be compared and  differences 
between their  electrici  v constipions  will  result  mainly  from  their  energy  efficiencies,  for 
example reflecting  differences  in the thickness of the insulation in the walls of the appliances. 

Eight  categories  of  app!"r.nce  vv«re adopted,  (with  a  special  allowance  factor  for  no-frost 
facilities),  ad  explained  ^  Anne;  I  to  the  proposed  Directive.  Some  commentators  have 
suggested further  subd"  • 
\>f categories, to reflect  other energy  consuming features which 
are available.  The Commissi- ci does not fee! further  subdivisions appropriate however, since 
the  combinations  of  pecsihle  features  and  therefore  categories  would  then  substantially 
increase  and  make the  scneme  unworkable.  Moreover,  manufacturers  can  relatively  easily 
take  measures  to  improve  efficiencies  further  if  necessary  within  a  given  category 
to 
compensate  for  any  additional  and  relatively  minor  energy  consuming  features. 

In  order to give the appliance manufacturing  industry time to adapt whilst ensuring progress 
to  an  achievable  and  economic  level  of  efficiencies,  two  levels  of  minimum  efficiency 
standard are envisaged; the first to take effect  after three years from  adoption of the Directive, 
and  the  second  level  of  standards,  about four  years thereafter.  The first level  of  efficiency 
standards,  defined  for  each  appliance  category,  are  based  on  the  so  called  "statistical 
approach".  In  this  approach  standards  are  set  which  eliminate  the  least  energy  efficient 
appliances comprising a certain proportion of all appliances currently available on the market. 
As has been  described,  the efficiencies  of many  of these models can be improved  relatively 
easily  and at only modest extra cost.  This reflects  the low level  of attention  currently given 
to  energy  efficiency  for  a  significant  share  of  appliances  produced.  The  first  standard  has 
therefore  been  set  to  give  an  average  improvement  in  efficiencies  of  about  10%  -  this 
relatively  modest improvement  affecting  on average around  half  of the models available on 
the market  in  1992.  The average increase in purchase price resulting from  the  introduction 
of the first level  of energy  efficiency  standard will be a little over  1%.  The actual  purchase 
price  and  electricity  price  are  the  values  which  determine  the  life  cycle  cost  from  the 
consumer's perspective.  Both for electricity prices and other costs (change in the labour cost, 
cost of raw materials and other production cost) sensitivity analysis have been carried out and 
show  that  there  are  no  significant  changes  and  the  overall  conclusions  are  very  robust. 
Although, it is technically feasible to design and produce refrigerators  and freezers  consuming 
significantly  less energy than today's models, the first level  of energy  efficiency  standards is 
far away from  the life cycle cost minimum  and has a very short pay-back time of a little over 
one year. 

It is envisaged that the second level of standards would be defined  using a technical/economic 
approach.  Under this method, the efficiency  requirements set for each category  are based on 
the  performance  of  a  hypothetical  appliance  of  that  category  incorporating  all  energy 
efficiency  improvements which will then be technically feasible and economic, the economic 
criterion  being  that  the  extra  cost  of the  particular  measure  has  a  pay-back  in terms  of  the 
electricity  saved  of  about  3  years  or  less. 
In  current  circumstances,  the  efficiency  levels 
defined  by this approach  are on average about 30% more demanding than the levels  defined 
by  the  statistical  approach,  indicating  that  the first level  of  standards  is  still  a  considerable 
way from  the optimal economic efficiency  level defined  by the technical/economic approach. 
Moreover,  whilst  the  economic  optimum  is  effectively  the  optimum  for  the  consumer,  it 
would be even more demanding if the external costs of the electricity saved (e.g. reduced  C02 
emissions) were  also taken  into  account,  or  if  electricity  prices  were to increase  in  relative 
terms.  In fact  it is envisaged that this second level of standards, and the date for  their entry 
into  force,  would  be  fixed  definitively  on the  basis  of  a  new  study  and  consultation  with 
interested parties to be carried  out  about one year after  the entry into force  of the first level 
of  standards.  In this way  all the  latest  relevant  data,  such  as the  cost and feasibility  of the 
various technical  options, as well as the operation  of the first level of standards, can be taken 
into account  at that time. 

The  first  level  of  standards  proposed  in  this  Directive  are  based  on  the  results  of  a 
comprehensive  study carried  out for the Commission by a grouping of national,  independent 
energy and environmental agencies(14) and on which the appliance manufacturing industry, the 
Member  State administrations,  and  other interested  parties were consulted  at all  stages.  As 
part of this study, the impact of the proposed  standards on the models of appliances currently 
being produced  by the different  manufacturers  were  estimated. 

(14)  Study for the Commission of the European Communities on energy efficiency  standards 
for  domestic electrical  refrigeration  appliances, carried  out jointly  by the three national 
energy/environmental  agencies; NOVEM (NL), ADEME (FR) and DEA (DK), (Interim 
Report July  1992, Final  Report March  1993). 

IV.  Impacts  on the  Industry 

The impact  of introducing  the first  level  of  minimum  efficiency  standards on the European 
manufacturing  industry  depends  on  a  large  number  of  factors:  the  proportion  of  each 
manufacturer's  model  range  which  already  exceeds  the  minimum  efficiency  standard  level; 
the normal  model update cycle, and the number of models which would have been launched 
or  updated  without  minimum  efficiency  standards; the  available  options for  making  design 
changes which will meet the relevant minimum  efficiency  standard level; the extent to which 
the  cost  of  compliance to minimum  efficiency  standards,  if  any,  can  and  will  be  passed  on 
to purchasers. 

About  50%  of  the  1992  model  range  would  have  been  eliminated  if  the  first  level  of 
minimum  efficiency  standards was introduced  overnight.  This is very much an hypothetical 
"worst  case"  scenario,  based  on  the  unlikely  assumption  that  suppliers  could  not  introduce 
new models or modify  existing models to meet the minimum efficiency  standard, and that the 
model  range  will  consist  only  of  1992  models  or  additional  models  with  the  same  energy 
efficiency.  However,  it  is considered  highly  likely that  new models will  be introduced,  for 
the  following  reasons:  a  period  of  three  year  notice  is  foreseen  between  the  adoption  of 
minimum  efficiency  standards  and their  implementation.  During this period  most  suppliers 
would  have replaced  a third  of their  model  range in  any  case,  so there will  be  considerable 
opportunity  to make minimum  efficiency  standard-compliance  one of the design  criteria for 
the new models; most refrigerator  and freezer models which fail to comply with the minimum 
efficiency  standard levels are relatively close to the minimum efficiency  standard cutoff,  fairly 
minor  design  changes  would  enable  them  to  comply,  and  the  materials  and  components 
involved  are non-proprietary  and available from  a range of  suppliers. 

Many  of  the  models  which  will  be  eliminated  are  the  less  efficient  variants  of  otherwise 
complying models.  In these cases, the manufacturers  concerned already have a model variant 
that  can  comply  with  the  proposed  minimum  efficient  standard  level.  Their  only  cost  of 
compliance  with  minimum  efficiency  standards will  be to change their  component  sourcing 
practices to ensure that  minimum  efficiency  standard  levels are consistently  achieved. 

Given  the  improvement  in  energy-efficiency  which  would  be  expected  even  in  the  normal 
course of events (in the last twenty years an average efficiency  improvement  of about 2% per 
year has been achieved by manufacturers), the proportion of appliance models famng to meet 
the first level  of minimum  efficiency  standards  would  be  significantly  less it  1998 than  in 
1992  even  without  special  effort  to  meet  them.  Because  of  the  high  saturation  of  the 
Community  market,  sales  are  mainly  due  to  replacement  of  faulty  appliances  and  to  new 
households; therefore  sales  are not  very  sensitive to  price  f> ^  •»/«!•'on and  so the very  small 
price increase will  not hinder sales not will it distort the mc-'u 
,^nufacturers  will be able 
;ction  of  a  minimum 
to  pass  the  production  cost  increase  to  consumers  s^ô  -: :  imr. 
efficiency  standard  will  increase manufacturers  turnov .*.  Ax the  san.  time  competitiveness 
of  the  Community  manufacturing  industry  will  be  increased  in  aim  .  "  :ry  icfrigerator 
category.  Because the least efficient  models are imported from  countries w 
a less advanced 
manufacturing in*™*!  s.ivn:  '  *vc?.l'y from  Central and Eastern Europe, impon ol  inefficient 
v* same time export, to countries outside,  vhert  minimum 
refrigerators  will  dec-  '  f  -" 
efficiency  standard  h2^ 
-^a*  . 
//ill be soon  adopted,  will  increase.  Therefore,  it can be 
concluded  that the fe^c  ; 
•* v. i." "•  efficiency  standard  and the adoption time proposed are 
nof  expected to create  ** v  '  1 fruity  for  European  refrigerators  and freezer  manufacturers, 
on the  contrary  increas  *ic.  competitiveness  on the world  scene-

Admini strati ve Arranges: ants Proposed 

As to the administrative arrangements  proposed,  well  defined  systems have been  developed 
at Community level on technical  harmonisation  and standards, as a central  part: of completing 
the interna! c^ark0!  The present proposal  is based  on what are called  harmonised  European 
stand?<df.,  '--is  opposed  to  the  cider  alternative  of  mutually  recognising  national  standards 

where  these  existed)  and  therefore  conforms  to  the  "new  approach"  to  standardisation0^. 
Under the "new approach", the essential requirements of legislative harmonised  standards are 
defined  by Directives. 

Methods of assessing the conformity  of products with  such standards, based  on the so called 
"global  approach",  have  also  been  adopted  at  Community  level(16X17),  and  have  been 
incorporated in this proposal.  This approach allows use of one or more of a set of "modules" 
which outline different  procedures for assessing the conformity  of a product with the imposed 
standards.  The different  modules are designed to meet different  possible circumstances and 
are  selected  as appropriate  to meet the requirements  of the directive in  question. 

The domestic refrigeration  appliance manufacturing  industry in Europe  comprises about half 
a dozen very large companies, another dozen  or so large to medium  companies, and perhaps 
around  twenty  smaller  companies.  Most production  supplying the Community  is located  in 
the Community itself, though with substantial production also  in certain EFT A countries, and 
a significant quantity of imports from  Central and Eastern European countries.  Refrigeration 
appliances  are  also  offered  in  a  very  wide  range  of  models,  with  difference  functions, 
features  and  dimensions.  It  is  estimated  that  there  are  currently  around  4000  models  of 
refrigeration  appliances on the Community market, with manufacturers continually developing 
and  introducing  new models to respond  to market needs. 

These  considerations  indicate that  a mandatory  "type-conformity" 
testing  procedure to be 
carried  out  by  appropriate  bodies  designated  by  Member  State  governments,  (so  called 
"notified  bodies"),  would  be  extremely  onerous  and  would  require  very  considerable 
expenditure and time commitments by both manufacturers and the notified bodies themselves. 
A  conformity  assessment  procedure  based  on  self  assessment  is  therefore  proposed.  This 
procedure is also that  required  for  conformity  assessments for  other Directives  which  cover 
refrigeration  appliances,  namely  the  "Low  Voltage  Directive"(18)  and  the  "Electromagnetic 
Compatibility  Directive"(19). 

Under  the  self  assessment  module,  manufacturers  are  required  to  draw  up  technical 
documentation and accompanying test reports in support of the declaration of conformity they 
are also required to make.  All these documents must be kept available for  inspection by the 
public  authorities  at  any  time,  and  in  particular  if  doubts  arise  about  the  conformity  of  a 
particular  model  of appliance.  These are formal  procedures which must be followed  before 
the CE marking can  legitimately  be affixed  by the manufacturer,  allowing the product to be 
placed, and to circulate freely, on the Community market. Some commentators have expressed 
doubts  on  the  effectiveness  of  a  self  assessment  procedure,  but  in  the  circumstances  as 
described  above it is felt  to be sufficient,  all the more so when  account is taken  of the threat 
of prosecution  under the appropriate trades  description  legislation  in  a country  and the very 
negative publicity which could accompany  a false  claim on energy  efficiency.  In any event, 
it is proposed that in the  report to be drawn up on the operation of the Directive, in line with 
the guidelines developed for Community conformity  assessment procedures, the  effectiveness 
and  efficiency  of the conformity  procedures  shall  be given  particular  attention. 

(15) 

(16) 

(17) 

(18) 

(19) 

Council  Resolution  on  a  new  approach  to  technical  harmonisation  and  standards, 
OJNoC  136, 4.6.1985, p. 1. 
Council  Resolutions  on  a  global  approach  to  conformity  assessment,  OJ  No  C  10, 
16.1.1990, p.  1. 
Council  Decision  90/683/EEC  concerning  the  modules  for  the  various  phases  of  the 
conformity  assessment  procedures  which  are  intended  to  be  used  in  technical 
harmonisation  directives,  OJ No L  380,  31.12.1990, p. 13. 
O J N o L 7 7,  26.3.1993, p. 29. 
OJ No L  139, 23.5.1989, p.  19, as amended  by  OJ No L  126,  12.5.1992, p. 11. 

VI.  The Need  for  Community  Legislation  and  Consultations with  Interested  Parties 

(a)  What  are  the  objectives  of  the  proposed  action  in  relation  to  the  Community's 

obligations? 

The present  proposal  is  in  full  agreement  with  the  Community  policy  of  harmonisation  of 
It is based  on Article  100a of the treaty, which  calls for  Community  measure to 
standards. 
harmonise  regulations  across  the  Community  to  ensure  the  establishment  of  the  internal 
market and to prevent barriers to trade.  Failing to define Community-wide standards will lead 
to the introduction  in some Member  States of national  minimum  efficiency  standards, which 
will  create unacceptable barriers to trade; it is the Community's duty to introduce  initiatives 
to prevent these barriers. 

The internal market requires industry and commerce to operate under similar conditions across 
the  Community  as  far  as  practicable,  thus  reinforcing  the  need  for  harmonisation  of 
environmental  and energy efficiency  actions including minimum  efficiency  standards.  So far 
no Member  State has introduced  legislation  for  minimum  efficiency  standards for  domestic 
refrigerators  because the Commission  has announced  Community  legislation. 

However, it should be noted that the proposed Directive is not only to achieve harmonisation 
of standards relating to tradeable goods, but also to contribute to other Community objectives. 
In particular the setting of energy efficiency  standards for refrigeration  appliances is to reduce 
the  use  of  energy  and,  inter-alia,  to  contribute  to  the  reduction  of  C02  emissions  to  the 
atmosphere.  The Community  has adopted the objective  of stabilising  such emissions by the 
end of the century and this objective will not be achieved under current trends without  further 
significant  improvements  to  energy  efficiency.  The  nature  of  actions  at  Community  level 
relating to the environment  is stipulated  by Article  130r of the treaty  which  calls for,  inter-
alia: the prudent  and  rational  utilisation  of  natural  resources; that the costs and  benefits  of 
actions should be taken into account; and that action  should be taken  at Community  level to 
the  extent  that  this  is  more  effective  than  action  at  Member  State  level. 
In  addition, 
Article  100a calls for proposals concerned with environmental protection to take as a base "a 
high  level  of protection".  The proposed  Directive meets all  of these requirements. 

The  adoption  of  minimum  efficiency  standards  for  domestic  refrigeration  appliances  is 
specifically  mentioned  in the  SAVE  action  programme  adopted  by  the  Commission(20) as a 
priority  sector to achieve energy  savings. 

(b)  Does  competence  for  the  planned  activity  lie  solely  with  the  Community  or  is  it 

shared with the Member  States? 

The Council Resolution  defining the "new approach" calls for the "essential requirements" of 
such  legislative  harmonisation  to  be  established  by  Community  Directive.  Community 
Legislation  imposing  harmonised  standards  is thus clearly  an  area  of  exclusive  Community 
competence.  As far as  energy efficiency  is concerned (and the associated reductions of  C02 
emissions),  the  competence  is  shared  with  Member  States.  All  Member  States  have  to 
contribute to achieve the C02 emission target by the year 2000.  Nevertheless, environmental 
actions  must  be  coordinated  and  harmonised  at  Community  level  where  they  relate  to 
tradeable goods. 

(c)  What  is the Community  dimension  of the  problem? 

Further to the internal  market dimension already  described in point (a) and (b), the proposal 
has  also  a  very  important  environmental  dimension.  The  greenhouse  effect  is  a  global 
problem  and actions to reduce  C02  emissions must be taken  at least at  Community  level  to 

(20)  O J N o C 2 3,  31.1.1992, p. 8. 

10 

have  a  real  environmental  impact.  The  introduction  of  minimum  efficiency  standards  for 
domestic refrigeration  appliances by some Member  States, will have a limited  environmental 
impact  and  will  not  contribute  substantially  to  the  reduction  of  C02  emissions.  Minimum 
efficiency  standards to make a significant contribution must affect the largest number possible 
of appliances.  Therefore  they  should be adopted at least at Community level.  The adoption 
of minimum  efficiency  standards will  have large repercussions also outside the Community. 
In almost every appliance category the least efficient  model  is imported into the Community 
from  a country  with  a less  advanced  manufacturing  infrastructure;  many  of these  countries 
will  adopt  similar  standards  to  avoid  their  market  being  flooded  by  low  efficiency 
refrigerators  banned from  Community markets and also to force their manufacturing  industry 
to produce more efficient  ones to compete in the Community; some non-Community countries 
have  already  enquired  about  the  Community  proposed  standards  with  a  view  to  adopting 
them.  The  adoption  of  minimum  efficiency  standards  in the  Community  will  stimulate the 
diffusion  of  more  efficient  technology  and  minimum  efficiency  standards  in  several  non-
Community  countries thus  contributing  significantly  to the reduction  of  C02. 

(d)  What  is the  most effective  solution taking into account the means  available to the 

Community  and those of the Member  States? 

Although the adoption of more efficient  refrigeration  appliances will result in net savings for 
consumers and for society a as whole, market forces have failed to incorporate these potential 
savings into existing models and therefore  two complementary  and essential  initiatives have 
been  proposed  at  Community  level:  the  energy  labelling  Directive,  now  adopted,  and  the 
present  efficiency  standards proposal. 

In  a  perfect  market,  good  consumer  information  on  savings  achieved  with  more  efficient 
appliances should be enough to lead to the desirable efficiency  improvement: by  stimulating 
the  demand  for  more  efficient  appliances  it  would  continually  improve  the  quality  of  the 
products on the market,  obviating the need for minimum efficiency  standards.  But the  effect 
of consumer information  and energy labels is somehow limited  and its effectiveness  depends 
on  many  factors,  including  the  degree  of  promotion  and  advertising  support  which  the 
information  programme  receives.  This  is  because  not  all  consumers  will  be  reached  or 
influenced  in their purchasing decisions by energy labels.  Despite several  efforts  to conduct 
consumer information  campaigns on energy consumption of household appliances, at local or 
Member  State level, recent  surveys indicate that energy efficiency  is not among the first five 
purchase criteria; other factors  such as size, appearance, performance  and purchase price are 
in general  more important  in  arriving  at the purchase  decision, which  often  is taken in very 
short time, without  much  information,  to replace a faulty  appliance. 

Consumers  can  readily  compare  purchase  price  and  visible  features,  but  information  about 
energy consumption is much more difficult  to understand.  Consumers must rely on the advice 
of  sales people or advertising  (sources which  are not likely to be disinterested),  on personal 
knowledge  (energy  consumption  requires  complicated  measurement,  beyond  the  reach  of 
many  individuals),  brand  loyalty  (a  poor  guide  to  likely  energy  efficiency),  or the  tests  of 
consumer  organisations  (which  are  usually  available  to  limited  number  of  persons). 
Moreover,  there are markets,  such as large purchases for  housing estate, for  which  purchase 
price is the most important  factor  because the purchaser  will  not pay the electricity  bill. 

The Labelling  Directive  will  contribute to  consumer  information  and  stimulate the  demand 
for  more  efficient  appliances  but,  given  the  reasons  above,  its impact  on  overall  efficiency 
will  be  somehow  limited.  In  several  Member  States  different  types  of  labelling  have been 
introduced  but  always the results have  been  very  poor  in term  of  overall  energy  efficiency 
improvements. 

This  confirms  that  consumer  information  on  its  own  is  not  able  to  achieve  the  target 
efficiency  improvements  and  that,  on  the  contrary,  minimum  efficiency  standards  or  an 
equivalent voluntary agreement with manufacturers are essential and complementary measures 
to achieve the target. 

11 

Voluntary  agreements  may  seem  for  several  reasons,  preferable  to  mandatory  minimum 
efficiency  standards,  because  they  allow  more  flexibility  and  can  be  implemented  more 
rapidly  but would  be highly  undesirable from  a competition  point  of view. 

Therefore,  the  voluntary  agreement  having  failed  (a  last  offer  of  voluntary  agreement  was 
made to CECED in November  1993), the only  option left  to the Community  to achieve the 
targeted efficiency  improvement is to adopt Community-wide minimum efficiency  standards. 

(e)  What  real  added  value will  the  activity  proposed  by the  Community  provide and 

what would  be the cost of  inaction? 

Minimum efficiency  standards for domestic refrigeration  appliances have to be introduced in 
several  Member  States  to  have  a  significant  impact  on  the  reduction  of  C02,  but  such 
initiatives may lead to barriers to trade, if requirements vary.  The added value provided by 
the  introduction  of  minimum  efficiency  standards  at  Community  level  consists in  affecting 
the largest number of refrigerators  and freezers  (all new appliances  sold in the Community), 
and  at the  same time  ensuring the  establishment  of the internal  market.  The United  States' 
experience  shows  the  same  pattern:  the  introduction  of  standards  at  state  level  created 
undesired barriers to trade between States and high administrative costs for industry to comply 
the  federal  administration  was  requested  by 
regulations; 
with  different 
manufacturers  to introduce federal  standards. 

therefore, 

The consequences of not adopting minimum  efficiency  standards at Community level will be 
very onerous: the Community will miss the opportunity to meet its commitments to curb  C02 
emissions and  achieve  savings worth  around two billion  ecu. Adopting  minimum  efficiency 
standards will also minimize the cost of efficiency  improvements to manufacturers,  because 
the same models will be sold in all the Community  market, instead  of developing models to 
conform  to  single Member  States standards. 

(f)  Which  methods  of  action  are  available  to  the  Community  (recommendation, 

financial  support,  regulation,  mutual  recognition)? 

The main  actions, recommended  by  several  experts  as the  most  efficient  to increase  energy 
efficiency  in domestic refrigeration  appliances, are consumer  information,  product  standards 
and incentives. 

consumer information  makes consumers aware of running costs and so persuading them 
to make rational  economic choices; 

product  standards will  remove the least efficient  appliances from  the market; 

incentives, which  can  be targeted  at consumers  (grants towards the  purchase  of  more 
efficient  appliances)  or  at  manufacturers  (financial  awards  towards  the  development, 
production  and marketing of new more efficient  appliances) accelerate the  introduction 
on the market  of more efficient  appliances. 

Over  ten  years  (1980-1990)  national  initiatives  in  Member  States  (mainly  consumer 
information  campaigns)  and  in  other  countries  such  as United  States  and  Canada  (product 
standards,  labelling  and  incentives)  show  that  only  a  combination  of  these  measures  will 
achieve anything like the potential  savings.  Moreover,  action  like the labelling  scheme and 
minimum efficiency  standards are more appropriate and achieve the best results at Community 
level,  as  demonstrated  in  previous  pages,  while  incentive  actions  are  perhaps  equally  well 
achieved  at national  or indeed  local level. 

This will justify  the adoption of a labelling scheme and of the proposed minimum  efficiency 
standards. To promote  "incentive" measures the Commission is currently reviewing the need 
for proposals on a more systematic promotion of demand side management in the Community. 

12 

(g)  Is it necessary to have a directive fixing detailed standards  or is a directive limited 
to setting out the general  objectives sufficient,  leaving  implementation  at the level 
of the Member  States? 

Given  the  difference  in  the  average  energy  efficiency  of  refrigeration  appliances  between 
Member  States,  setting  out  general  objectives  to  improve  efficiency,  such  as  average 
efficiency  improvements  to  be  achieved  by  each  Member  States,  will  impose  different 
obligations to Member  State (for example, in Germany where good results have already been 
achieved  a further  10% efficiency  improvement  will  be more  expensive  to  achieve  than  in 
other Member  States). Moreover,  leaving the  choice  and  implementation  of the measure  to 
Member  States  leads  to  adoption  of  different  regulations  and  standards,  with  all  the 
disadvantages  above  described. 

Whilst  efficiency  standards  are  proposed  which  will  lead  over  time  to  significant  energy 
efficiency  improvements,  sufficient  time  is  given  to  allow  manufacturers  to  adjust  to  the 
standards  required,  in  particular  through  a two  phase  approach.  The  proposed  conformity 
assessment  procedures  have  also  been  designed  to  cause  the  least  burden  to  industry 
compatible with ensuring achievement of the objectives of the Directive.  This is again in line 
with  the  requirements  of  Article  3b  of the  Treaty  which  states that  Community  legislation 
should  not be unduly  onerous  or intrusive. 

With  respect  to  consultations  and  as  described  above,  discussions  on the  subject  of  energy 
efficiency  standards  have been  held  at two  major  workshops  organised  by the  Commission 
specifically  for  this  purpose  and  to  which  all  interested  parties  were  invited.  In  addition, 
copies  of  an  initial  study  report  prepared  for  the  Commission  on  the  subject,  and  of  the 
interim and final report of a similar but more comprehensive study, were sent to all interested 
parties,  including  all  known  refrigeration  appliance  manufacturers,  and  comments  invited. 
Discussions were also held with representatives  of the appliance manufacturing  industry and 
in  particular  their  European  federation  CECED,  which  represents  the  vast  majority  of 
appliance  production  in  the  Community  and  other  western  European  appliance  producing 
countries.  Representatives of the Member State administrations were closely involved in the 
consultation  process  and  were  also  consulted  on  a  restricted  basis  in  appropriate  advisory 
committee meetings with the Commission  (under the SAVE and PACE programmes).  There 
has thus been a very full  consultation  process with  all interested  parties over the past couple 
of years. 

VII.  Scope of the Proposed  Directive 

The  proposed  Directive  covers  newly  produced  mains  electrical  domestic  refrigeration 
appliances,  which  comprise  the  vast  majority  of  those  sold  for  household  use  with  the 
exclusion  of  absorption  cooled  appliances.  Commercial  refrigeration  equipment  is far  more 
varied and would not conform to the appliance categories which have been developed.  In any 
event  a  decision  to  purchase  equipment  for  commercial  use  can  be  expected  to  give  much 
more attention to the energy  use implications. 

Vin.  Results Expected  from  the Proposed  Directive  and Accompanying  Measures 

Only  new  refrigeration  appliances  sold  on  the  Community  market  are  affected  under  this 
proposal.  Since only about 8% to 10% of domestic refrigeration  appliances are replaced each 
year  on average, the impact  of  standards  on electricity  consumption  will  be relatively  slow, 
though continually  increasing  over time.  It has been estimated  that the standards envisaged 
(21)  emission 
under  this  Directive  could  give  the  following  electricity  and  consequent  C02
reductions: 

(21)  Based on the Community  electricity generation  mix forecast  for the period in question. 

13 

Estimated Reductions in Electricity Use and 
Consequent CQ2 Reductions from Electricity Generation 
for the Community  from Refrigeration  Appliance 
Standards-entry  into force  on  1 January 2000. 

1995 

2002 

2010 

2020 

Electricity  consumption 
for total Community domestic 
refrigeration (TWh/yrï 

- without standards 

- with standards 

savings through standards 

CQ2 emissions avoided through 
standards HO6 tonnes/yr) 

108 

108 

: 

107 

93 

14 

6 

104 

73 

31 

14 

100 

60 

40 

17 

The absolute  savings become very  substantial  in time,  equaling the total  current electricity 
consumption of Portugal and Ireland combined by the year 2020. Moreover, it is in the nature 
of  measures to improve  energy  efficiency  that they  must be  applied to the very  many and 
diverse uses of energy in our modern economies. Domestic refrigeration appliances represent 
the largest single area for electricity  savings and the right area to start with, but such action 
will  need to be complemented by similar initiatives in other areas too. 

Some commentators, in the light of the relatively slow though steady impact of standards on 
the  stock  of  refrigeration  appliances,  have  stressed  the  need  for  measures  to  enhance and 
accelerate the appliance renewal process.  It is the Commission's intention to help encourage 
greater  awareness  of  the  energy  efficiency  aspects  of  refrigeration  appliances  through the 
energy  labelling  requirements  and by,  for  example,  using the various European  consumer 
associations  to  publicise  the 
labelling  and  standards  activities  through  their  publications. 
Energy advisory bodies and in some cases electricity supply undertakings in Member States 
also  promote  awareness  of  this  subject  through  various  publications  including  lists  giving 
energy  consumption  figures  for  refrigeration  appliances  available  on  the  market.  More 
recenûy  a  couple  of  electricity  supply  companies  in  the  Community  have  started  to  give 
grants towards the purchase of energy efficient  appliances,  as a partial  alternative to having 
to build new generation  capacity.  Given the very  considerable  scope for improved energy 
efficiency  as a pollution  free  and often  very  economic  complement to  supply  side options, 
such measures can only be applauded and encouraged.  Indeed the Commission is currently 
reviewing  the  need  for  proposals  on  a  more  systematic  promotion  of  demand  side 
management in the Community. 

IX.  Impact on Society  as a Whole 

It is estimated that the implementation of the recommended first level of minimum  efficiency 
standards for refrigerators and freezers would have the following  impacts on the Community 
economy  assuming total  sales of refrigerators and freezer of  14 million per year: 

the  annual  electricity  consumption  for  refrigeration  appliances  would  be  14  TWh/yr 
(13%) lower in year 2002, than it would be without minimum efficiency  standards. 

the annual  carbon dioxide emission associated would be 6 million tonnes (10%) lower 
in year 2002, than it would be without minimum efficiency  standards; 

14 

the  implementation  of  the  first  level  of  minimum  efficiency  standards  could  lead  to 
increase in  average retail  price a little  over  1%, a  10% reduction  in lifetime  electricity 
cost and  a reduction  of  5.5% in  aggregate life  cycle cost to consumers; 

total purchase cost increase after the first level of standards is introduced will be around 
ECU  140 million  per year.  This will be greatly  outweighed  by discount energy  saving 
of  ECU  1 400  million  on  each  year's  purchase  of  more  efficient  refrigerators  and 
freezers. 

This  is  interpreted  as  a  favourable  cost/benefit  impact,  i.e.  the  estimated  energy  and  C02 
emission  reduction  and the economic saving satisfy  the  "no-regret"  criteria. 

15 

Proposal  for  a 
EUROPEAN  PARLIAMENT  AND COUNCIL  DIRECTIVE 
on energy  efficiency  requirements for  household  electric  refrigerators, 
freezers  and their  combinations 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty  establishing the European  Community  and in particular Article 
100a thereof, 

Having regard  to the proposal  from  the Commission(1), 

Having regard  to the opinion  of the Economic  and  Social  Committee(2), 

Whereas  it is important  to  promote  measures  aimed  at the  progressive  establishment  of the 
internal  market; whereas the internal  market comprises an area without internal  frontiers,  in 
which  the free  circulation  of goods, persons,  services and capital  is ensured; 

Whereas the  Council  Resolution  of  15 January  1985  on the  improvement  of  energy-saving 
programmes in the Member  States(3) invited  Member  States to pursue and, where necessary, 
increase their efforts  to promote the more rational  use of energy by the further  development 
of integrated  energy-saving  policies; 

Whereas the Council  Resolution  of  16 September  1986(4) called for  new Community  energy 
policy  objectives  for  1995  and  convergence  of  the  policies  of  the  Member  States,  and  in 
particular the objective of improving the efficiency  of final energy demand (the ratio of  final 
energy  demand to gross national  product) by  at least 20% by  1995; 

Whereas  domestic  refrigeration  appliances  account  for  a  significant  share  of  domestic 
electricity  consumption  by  households  in  the  Community  and  thus  of  total  electricity 
consumption;  whereas  the  electricity  consumption  of  different  models  of  refrigeration 
appliances available for  purchase in the Community with the same volume and features, that 
is to say their  energy  efficiencies,  vary  very  considerably; 

Whereas  several  Member  States  are  on  the  point  of  adopting  provisions  relating  to  the 
efficiency  performance  of  domestic  refrigerators  and  freezers,  which  will  create  barriers  to 
trade of these products in the  Community; 

Whereas  it  is  appropriate  to  take  as  a  base  a  high  level  of  protection  in  measures  for  the 
approximation  of  the  provisions  laid  down  by  law,  regulation  or  administrative  action  in 
Member  States  and  concerning  health,  safety,  environmental  protection  and  consumer 
protection; whereas this Directive ensures a high level of  protection both for the environment 
and the consumer,  in  aiming  at a significant  improvement  of the energy  efficiency  of these 
appliances; 

Whereas the adoption of such measures falls within Community competence and whereas the 
requirements  of this Directive  do not  exceed  those  necessary  to  achieve its objectives,  thus 
conforming  to the requirements  of Article 3b of the Treaty; 

0)  OJNoC 
(2)  OJ No C 
(3)  O J N o C 2 0,  22.1.1985, p.  1. 
(4)  OJNoC241,  25.9.1986, p.  1. 

16 

Whereas,  moreover,  Article  130r of the  Treaty  calls for  the  protection  and  improvement  of 
the environment and prudent  and rational  utilisation  of natural  resources; whereas electricity 
generation and use accounts for about 30% of man-made carbon dioxides (C02) emissions and 
about  35%  of  primary  energy  use  in  the  Community,  and  whereas  these  percentages  are 
increasing; 

Whereas, furthermore, Council Decision 89/364/EEC(5) which establishes a Community action 
programme  for  improving  the  efficiency  of  electricity  use  has  as  its  twin  objectives 
encouraging  consumers  to  favour  appliances  and  equipment  with  high  electrical  efficiency, 
as well  as improving the efficiency  of appliances  and  equipment; 

Whereas on 29 October  1990 the Council  set an objective of stabilising carbon dioxide (C02) 
emissions in the Community  at  1990 levels by the year 2000; 

Whereas Council  Decision  91/565/EEC(6)  established  a programme  (the  SAVE  programme) 
to support  and further  promote  energy  efficiency  in the  Community; 

Whereas  the  energy  efficiency  measures  incorporated  in  the  more  efficient  models  of 
refrigeration  appliances available do not excessively  increase their production  costs and such 
measures can repay their initial  cost in terms of electricity  savings within a few years or less; 
whereas this calculation  does not take into account the added benefit  of the avoided external 
costs  of  electricity  generation,  such  as  the  emission  of  carbon  dioxide  (C02)  and  other 
pollutants; 

Whereas  Council  Directive  92/75/EEC(7)  (the  framework  directive)  and  Commission 
Directive  94/2/EC(8) (applying Directive 92/75/EEC) which require the compulsory  labelling 
of  appliances  and  the  provision  in  other  forms  of  energy  consumption  information  will 
increase consumers' awareness of the energy efficiency  of domestic refrigeration  appliances; 
whereas  this  measure  will  therefore  also  heighten  competition  on  the  energy  efficiency  of 
appliances above the standards required  by this Directive; whereas however the provision of 
information  to  consumers  without  standards  would  have  only  a  partial  effect  in  terms  of 
improving  the average  overall  efficiency  of appliances  sold; 

Whereas  this Directive,  which  is  aimed  at  eliminating  technical  barriers  with  regard  to  the 
energy  efficiency  of  domestic  refrigeration  appliances,  must  follow  the  "new  approach" 
established  by  the  Council  Resolution  of  7 May  1985(} which  specifically  lays  down  that 
legislative  harmonisation  is limited  to the adoption,  by  means of directives,  of the essential 
requirements with which  products put on the market  must  conform; 

Whereas  regard  should  be  had  to  Council  Decision  93/465/EEC(10)  which  concerns  the 
procedures  for  conformity  assessment  intended  to  be  used  in  the  technical  harmonisation 
directives; 

Whereas in the interest of international trade, international  standards should be used wherever 
appropriate; whereas the electricity consumption of a refrigeration appliance is defined by the 
European Committee for  Standardisation  Standard EN  153 of May  1990 which is based on 
an international standard; 

(5) 

(6) 

(7) 

(K) 

(9) 

(10) 

OJNoL  157, 9.6.1989,  p. 32. 
OJNoL307,  8.11.1991,  p. 34. 
OJNoL297,  13.10.1992, p. 16. 
OJNoL45,  17.2.1994,  p. 1. 
OJNoC  136, 4.6.1985,  p. 1. 
OJNoL220,  30.8.1993,  p. 23. 

17 

Whereas domestic refrigeration  appliances complying with the energy  efficiency  requirements 
of this Directive should bear the CE marking and associated  information,  in order to enable 
them  to  move  freely,  and  to be  put  into  service in  accordance  with  their  intended  purpose 
within the Community; 

Whereas  this  Directive  is  confined  to  domestic  refrigeration  appliances  for  foodstuffs, 
excluding those with  an  insignificant  use of  energy  in total, that  is,  domestic  refrigeration 
appliances supplied by mains electricity; whereas commercially used refrigeration  equipment 
is much more varied  and not appropriate for  inclusion  in this Directive; 

HAVE  ADOPTED THIS DIRECTIVE: 

Article 1 

This  Directive  shall  apply  to  electric  mains  operated  household  refrigerators,  frozen  food 
storage cabinets, food freezers,  and combinations of these as defined  in Annex I  and referred 
to  hereafter  as  "refrigeration  appliances".  However  refrigeration  appliances  working  on the 
absorption  principle shall be excluded. 

Article 2 

Member States shall take all appropriate measures to ensure that refrigeration  appliances can 
be  placed  on  the  market  and  put  into  service  only  if  the  electricity  consumption  of  the 
appliance  type  to  which  that  appliance  belongs  is  less  than  or  equal  to  the  maximum 
allowable electricity  consumption value as calculated according to the procedures defined  in 
Annex I.  Refrigeration  appliances  shall  be considered  to belong to the  same type,  referred 
to in this Directive  as  "appliance type",  if they  are produced  by the  same manufacturer  or 
under licence by a different  manufacturer and differ  only in aspects which do not  significantly 
affect  their energy  consumption  in use in any way. 

Article 3 

1.  Member States may not prohibit, restrict or impede the placing on the market or putting 
into  service  on  their  territory  of  refrigeration  appliances  which  bear  the  CE  marking 
attesting to their conformity  with  all the provisions of this Directive. 

2.  Member  States  shall  presume  that  refrigeration  appliances  bearing  the  CE  marking 

required under Article  5 comply  with  all the provisions of this Directive. 

3.  At  trade  fairs,  exhibitions,  demonstrations,  etc.,  Member  States  shall  not  prevent  the 
showing of a refrigeration  appliance which does not conform  with the provisions of this 
Directive, provided that a visible  sign clearly indicates that  such an appliance does not 
so conform  and that  it is not  for  sale until  it has been  brought  into  conformity  by the 
manufacturer  or his authorized  representative established  in the Community. 

The conformity assessment procedures to be applied to a given type of refrigeration appliance 
in order to affix  the CE marking are indicated in Annex II. 

Affole 4 

IS 

Article 5 

The CE marking  shall  consist  of the  initials  "CE".  The form  of the marking to be used is 
shown in Annex HI.  The CE marking shall be affixed  to the refrigeration  appliance distinctly 
and visibly. 

Article 6 

1.  Where  a Member  State  establishes  that  the  CE  marking  has  been  affixed  unduly,  the 
manufacturer  or his authorized representative established within the Community shall be 
obliged  to make the product  comply  and to end the infringement  under the  conditions 
imposed  by the Member  State; 

2.  Where non-conformity  continues, the Member  State must take all appropriate measures 
to restrict or prohibit the placing on the market of the product  in question  or to ensure 
that it is withdrawn  from  the market. 

Article 7 

Any  decision taken  pursuant  to this Directive which  includes  any  restriction  on the  placing 
on  the  market  and/or  putting  into  service  of  refrigeration  appliances  shall  state  the  precise 
grounds on which it is based.  It shall be notified  without delay to the party concerned, which 
shall  at the  same time be  informed  of  the  legal  remedies  available  to  it under  the  laws in 
force  in  the  Member  State  in  question  and  of  the  time  limits  to  which  such  remedies 
are  subject. 

Article 8 

Before  the  expiry  of  a  period  of  four  years  from  the  adoption  of  this  Directive,  the 
Commission  in  consultation  with  interested  parties  shall  make  an  assessment  of the  results 
obtained  and expected.  Following this assessment, the Commission  shall  consider the need 
for  a new proposal  for  Community  legislation  to establish  a second  set of energy  efficiency 
standards  for  household  refrigeration  appliances.  If  such  a  proposal  is  made,  its  energy 
efficiency  standards and their timing for  entry  into force  will be based  on energy  efficiency 
levels which  can be  economically  and technically justified  in the light  of the  circumstances 
at  the  time  of  the  proposal.  The  proposal  may  also  contain  any  other  provisions judged 
necessary  to improve the effectiveness  of this Directive. 

Article 9 

[assumes European  Parliament  and Council final adoption  early  1995] 

1.  Before  1  January  1996, Member States shall adopt and publish the laws, regulations and 
administrative  provisions  necessary  to  comply  with  this  Directive.  They  shall 
immediately  inform  the Commission  thereof 

Member  States  shall  apply  such  provisions  as from  1 January  2000. 

When  Member  States  adopt  these  provisions,  these  shall  contain  a  reference  to  this 
Directive  or  shall  be  accompanied  by  such  reference  at  the  time  of  their  official 
publication.  The procedure  for  such  reference  shall  be adopted  by Member  States. 

2.  Member  States  shall  communicate  to  the  Commission  the  texts  of  the  provisions  of 

national  law which  they  adopt  in the field covered  by this Directive. 

3.  Member  States shall, during the period up to  1 January 2000, permit the placing on the 
market and/or the putting into service of refrigeration  appliances which comply with the 
regulations in force  in the Member  States at the date of adoption  of this Directive. 

19 

This Directive shall enter into force on the twentieth day following  that of its publication in 
the Official  Journal of the European Communities. 

ArtifiullQ 

This Directive is addressed to the Member States. 

Article  U 

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

20 

Annex  I 

Procedures  for  Calculating  the Maximum  Allowable  Electricity 
Consumption  for  a Given  Refrigeration  Appliance  Type 
and for  the Verification  of  Conformity  therewith 

The  electricity  consumption  of  a  refrigeration  appliance  (which  may  be  expressed  as  kWh 
per  24  hours)  is  a  function  of  the  category  of  appliance  to  which  it  belongs,  (e.g.  1  star 
refrigerator,  chest freezer,  etc.), its volume, and the energy  efficiency  of its construction, (e.g. 
thickness  of  insulation,  compressor  efficiency,  etc.).  In  setting  energy  efficiency  standards 
therefore,  allowances  must be made for the main exogenous  factors  which influence  energy 
consumption  (i.e.  the  category  of  the  appliance  and  its  volume).  For  this  reason  the 
maximum  allowable  electricity  consumptions  of  a  given  refrigeration  appliance  type(}  are 
defined by a linear equation which is a function  of the volume of the appliance, with  different 
equations  defined  for  each  category  of  appliance. 

To  calculate  the  maximum  allowable  electricity  consumption  of  a  given  appliance  type,  it 
must therefore  first  be  allocated  to the  appropriate  category  from  the  following  list: 

Category 

Description 

1 
2 
3 
4 
5 
6 
7 
8 

Refrigerator  without Frozen Food Compartment(2) 
Refrigerator  with  1 Star Frozen  Food  Compartment 
Refrigerator  with  2  Star Frozen Food  Compartment 
Refrigerator  with  3  Star Frozen  Food  Compartment 
Refrigerator  with  4  Star Freezer 
Refrigerator-Cellar 
Chest  Freezer 
Upright  Freezer 

Because  refrigeration  appliances  contain  different  compartments  with  different  maintained 
temperatures,  (which  will  clearly  influence  their  electricity  consumption),  the  maximum 
allowable  electricity  consumption  is  defined  in  fact  as  a function  of  the  adjusted  volume, 
which  is  a weighted  sum  of  the  volumes  of  the  different  compartments. 

Thus, for the purposes of this Directive, the adjusted volume (V^y) of a refrigeration  appliance 
is  defined  as: 

Vadj = 

E  Vc  x  Wc x  Fc 

where  Vc  is  the  net  volume  of  a  given  type  of  compartment  in  the  appliance,  Wc  is  the 
weighting  co-efficient  for  that type  of  compartment  and Fc  is  a factor  which  equals  1.2  for 
no frost  compartments and  1 for other compartments.  Both the adjusted volume  and the net 
volumes are in litres.  The weighting co-efficients  for the different types of compartment are: 

(1)  The  definition  of  refrigeration  appliances  belonging  to  the  same  type  is  given  in 

Article 2. 

(2)  Any  compartment  with  a temperature  below  -  6°C. 

21 

Wc (weighting  co-efficient) 

Cellar compartment 
Fresh  food  compartment 
0°C compartment 
0  Star compartment 
1  star compartment 
2  star compartment 
3 and 4 star compartment 

0.75 
1.00 
1.25 
1.25 
1.55 
1.85 
2.15 

The maximum allowable electricity consumption E,,^ (in kWh per 24 hours expressed to two 
decimal places), for an appliance type with adjusted  volume V^, for each appliance category 
is defined  by the following  equations: 

Category 

Description 

E,^  (kWh/24 hours) 

1 
2 
3 
4 
5 
6 
7 
8 

Refrigerator  w/o FFC(3) 
Refrigerator  with  1 Star FFC 
Refrigerator  with  2  Star FFC 
Refrigerator  with  3 Star FFC 
Refrigerator  with  4  Star Freezer 
Refrigerator-Cellar 
Chest Freezer 
Upright Freezer 

(0.225  x Vadj  + 237) /  365 
(0.599 x Vadj  +  178) / 365 
(0.437 x Vadj  + 238) /  365 
(0.616 x Vadj  + 221) /  365 
(0.778 x Vadj  + 303) / 365 
(0.225  x Vadj  + 237) / 365 
(0.480 x Vadj  +  195) / 365 
(0.478 x Vadj  + 289) / 365 

Test  Procedures  for  verifying  whether  an  appliance  type  conforms  to  the  electricity 
consumption  requirements  of this Directive. 

If the electricity  consumption of a refrigeration  appliance representative of the production of 
the  appliance  type  subject  to  verification  is  less  than  or  equal  to  the  maximum  allowable 
electricity  consumption  value E^  as defined  above plus  15%, the  appliance type to which 
it  belongs  is  confirmed  as  conforming  to  the  electricity  consumption  requirements  of  this 
Directive.  If  the  electricity  consumption  of  the  appliance  is  greater  than  the  maximum 
allowable  electricity  consumption  value  plus  15%, the  electricity  consumption  of  a  further 
three appliances of the same type shall be measured.  If the arithmetic mean of the electricity 
consumptions  of  these  three  appliances  is  less  than  or  equal  to  the  maximum  allowable 
electricity consumption value plus 10%, the appliance type to which they belong is confirmed 
as conforming  to the electricity consumption  requirements of this Directive.  If the arithmetic 
mean exceeds the maximum allowable electricity  consumption value plus  10%, the appliance 
type  to  which  they  belong  shall  be judged  not  to  conform  to  the  ^ectricity  consumption 
requirements of this Directive. 

Definitions 

The terms used in this annex are defined  as in European Standard of the European Committee 
for  Standardisation  EN  153 of May  1990. 

(3)  Frozen  Food  Compartment. 

22 

Annex II 

Conformity  Assessment Procedures (Module A) 

1.  This  module  describes  the  procedure  whereby  the  manufacturer  or  his  authorized 
representative  established  within  the  Community,  who  carries  out  the  obligations  laid 
down in point 2, ensures and declares that the refrigeration  appliance type(1) satisfies the 
relevant requirements of this Directive.  The manufacturer  shall affix  the CE mark to all 
refrigeration  appliances of this type he manufactures  and draw up  a written  declaration 
of their  conformity. 

2.  The manufacturer  shall  establish  the technical  documentation  described  in paragraph  3 
and he or his authorized  representative established within the Community  shall keep it, 
for a period ending not less than 3 years after the last of the refrigeration  appliance type 
has been manufactured,  at the disposal  of the relevant national  authorities for  inspection 
purposes. 

Where neither the manufacturer  nor his authorized  representative  is established  within 
the Community, the obligation to keep the technical documentation available shall be the 
responsibility  of  the  person  who  places  the  refrigeration  appliance  type  on  the 
Community  market. 

3.  Technical  documentation shall enable an assessment to be, made of the conformity  of the 
refrigeration  appliance  type  with  the  relevant  requirements  of  this  Directive.  It  shall 
cover the design, manufacture  and operation of the refrigeration  appliance type and shall 
contain  as far  as is relevant  for  assessment: 

(i) 

the name and the address of the  manufacturer; 

(ii)  a general  description  of the model  sufficient  for  it to be uniquely  identified; 

(iii)  information,  including  drawings  as  relevant,  on  the  main  design  features  of  the 
model  and  in  particular  on  items  which  appreciably  affect 
its  electricity 
consumption,  such  as  dimensions,  volume(s),  compressor  characteristics,  special 
features,  etc.; 

(iv)  the operating instructions, if any; 

(v)  reports  of  electricity  consumption  measurement  tests  carried  out  as  required  by 

paragraph  5; 

(vi)  details  of  the  conformity  of  these  measurement  tests  as  compared  to  the  energy 

consumption  requirements  as set out in Annex I. 

4.  Where differences  between models are such that they have no significant  effect  on their 
energy  consumption,  that  is  they  belong  to  the  same  appliance  type  as  defined  in 
Article 2,  manufacturers  may  use  the  data  from  a  "base  model". 
In  this  case  the 
technical documentation shall consist of the information  listed above for the base model, 

(i)  The definition  of  a refrigeration  appliance type is given  in Article 2. 

23 

supplemented for each other model produced by the manufacturer by a description of the 
differences  between  that  model  and  the  base  model.  Technical  documentation 
established  for  other  Community  legislation  may  be  used  in  so  far  as  it  meets  the 
requirements  of this  paragraph. 

5.  Manufacturers  of  refrigeration  appliances  shall  be  responsible  for  establishing  the 
electricity  consumption  of  each  refrigeration  appliance  type  covered  by  this  Directive 
according  to  the  procedures  specified  in  European  Standard  EN  153,  as  well  as  the 
appliance type's conformity  with the requirements  of Article 2. 

6.  The manufacturer  or his authorized  representative  shall  keep a copy  of the  declaration 

of conformity  with the technical  documentation. 

7.  The  manufacturer  shall  take  all  measures  necessary  in  order  that  the  manufacturing 
process  shall  ensure  that  the  manufactured  refrigeration  appliances  comply  with  the 
technical  documentation referred  to in point 2 and with the relevant requirements of the 
Directive. 

24 

Annex  III 

1  CE conformity  marking 

The CE conformity  marking shall  consist of the initials  "CE" taking the following  form: 

If  the  marking  is  reduced  or  enlarged  the  proportions  given  in  the  above  graduated 
drawing  must  be  respected. 

The  various  components  of  the  CE  marking  must  have  substantially  the  same  vertical 
dimension,  which  may  not  be  less  than  5 mm. 

25 

IMPACT ASSESSMENT FORM 

The Impact of the Proposal  on Business with  Special 
Reference  to  Small  and Medium  Sized Enterprises  (SMES) 

Title  of  proposal.  Directive  on  Energy  Efficiency  Standards  for  Domestic  Refrigeration 
Appliance 

Document  Reference  Number: 

The proposal 

1.  Taking account of the principle of subsidiarity, why is Community  legislation necessary 

in this area and what  are its main  aims? 

The present proposal  is based on Article  100a of the Treaty, which specifically  calls for 
Community measures to harmonise regulations across the Community so as to ensure the 
establishment  of the  internal  market  and to  prevent barriers  to  the  free  movement  of, 
inter  alia,  goods.  The  proposal  by the Netherlands  government  for  energy  efficiency 
standards for refrigeration  appliances,  suspended by the Commission, provides the basis 
for this harmonisation.  Moreover, the Council Resolution  defining  the  "new approach" 
calls for the "essential  requirements" of such legislative harmonisation to be established 
by  a Community  Directive.  Community  legislation  imposing  harmonised  standards  is 
thus clearly  an area of exclusive Community  competence. 

The impact  on business 

2.  Who will  be affected  by the proposal? 

Which  sectors of business 

(i)  The manufacturers of electrical domestic appliances, in particular the  manufacturers 
of refrigerators, freezers and their combinations. The manufacturers  of compressors, 
which  are often  manufactured  separately. 

Which  sizes  of  business  (what  is  the  concentration  of  small  and  medium  sized 
firms) 

(ii)  The  domestic  refrigerator  appliance  market  in  Europe  is  very  competitive.  The 
intense  competition  has resulted  in  significant  reorganization  among the  principal 
firms and  has  had  impacts  in the  areas  of product  innovation  and  manufacturers 
willingness to respond to consumers  preferences. 

The European  domestic refrigeration  market  remains relatively  fragmented  with  over a 
hundred brands and about 40 independent manufacturers.  The industry comprises about 
half a dozen very large companies, which through  a series of mergers and takeovers, in 
anticipation  of  a European  single market,  have emerged  to  dominate the  market.  The 
three market leaders account for about 40% of the refrigeration  appliances market.  This 
consolidation  process  has  produced  a  very  complicated  picture  as  many  of  the 
manufacturing  groups  produce  their  product  in  different  countries  and  sell  them 
throughout the Community under several different  brand names. There are another dozen 
or so large to medium  companies and perhaps around twenty  smaller companies.  Most 
production  supplying  the  Community  is located  in the  Community  itself,  though  there 
is  a  substantial  production  in  certain  EFTA  countries  and  a  significant  quantity  of 
imports  from  Central  and  Eastern  European  Countries.  A further  complication  is the 
existence  of  large  retail  chains  which  produce  no  appliances  but  sell  under their  own 

26 

name appliances built by other producers, a large portion of this units are now produced 
in Central  and Eastern Europe. 

Are there particular  geographical  areas  of the  Community  where these  businesses 
are  found 

(iii)  The  very  large  companies  have  their  production  plants  located  in  the  following 
European  countries:  Germany,  Italy,  France,  Spain.  The  medium  and  smaller 
companies are located in: Germany, Spain, Portugal, Italy, France, Denmark, United 
Kingdom  and Netherlands. 

What will  business have to do to comply  with the proposal? 

In  order  to  comply  with  the  proposal  manufacturers  have  to  improve  the  energy 
efficiency  of  the  less  efficient  models  currently  on  the  market.  In  order  to  give  the 
appliance manufacturing  industry time to adapt whilst ensuring progress to an achievable 
and  economic  level  of  efficiencies,  two  levels  of  minimum  efficiency  standards  are 
envisaged;  the  first  to  take  effect  three  years  after  the  adoption  of  the  Directive,  and 
following a new study and consultation with interested parties to be carried out about the 
time  of  the  entry  into  force  of  the  first  level,  a  second,  more  demanding  level  of 
standards, may be proposed.  The first standard has therefore been set to give an average 
improvement in efficiencies  of about 10% - this relatively modest improvement  affecting 
on  average  around  half  of the  models  available  on the market  in  1992. (This figure  is 
very  much  hypothetical  "worst  case"  scenario  based  on  the  unlikely  assumption  that 
suppliers  cannot  or  will  not  introduce  new  models  or  modify  existing  appliances  to 
improve energy efficiency  and at the time of entry into force  of the standard the model 
range will  consist only  of  1992 models or additional  models with the same  efficiency). 

However,  it  is  considered  highly  likely  that  new  models  will  be  introduced  because, 
during the  period  1992 to  1998  (envisaged  date  of  entry  into force  of  standard),  most 
manufacturers  would have replaced  a third of their model range in any case, and energy 
efficiency  improvement  can be one of the design  criteria for  new models. 

Most  refrigerators  which  fail  to  comply  with  the  standard  levels  are relatively  close to 
the standard  cutoff  and fairly  minor design changes would  enable them to comply.  The 
efficiency  of many of these models can be improved relatively easily and only at modest 
extra cost.  The  study  carried  out  for  the European  Commission(1) suggest that there is 
no  direct  correlation  between  efficiency  and  price,  in  many  cases  more  efficient 
refrigerators  are less expensive and for a given price and size of the appliance its energy 
efficiency  varies up to 50%. 

The following  technical  options result with the  shortest  pay-back periods: 

Replacement  of  standard  compressors  with  a more  efficient  version,  this  will  result  in 
about  12% lower electricity  consumption  at  an average  cost to  manufacturers  of  about 
ECU 6 and  an average  simple pay-back  of  1.5 years. 

Increase cabinet insulation: option cost around ECU  12, average efficiency  improvement 
12%,  simple pay-back  time 2.5 years. 

(1) 

Study for the Commission  of the European Communities on energy efficiency  standards 
for  domestic electrical  refrigeration  appliances, carried  out jointly  by the three national 
energy/environmental  agencies; NOVEM (NL), ADEME (FR) and DEA (DK), (Interim 
Report  July  1992, Final  Report March  1993). 

27 

Increase door insulation: option cost around ECU 6 average efficiency  improvement 8%, 
simple pay-back time  1.5  years. 

Combining  the  3  options,  considerable  energy  savings  are  achieved.  The  levels  of 
energy consumption reached at the life cycle cost minimum  shows that large savings are 
possible with  technical  solutions  that  are  feasible  for  mass production  today.  This by 
no means represents an upper  limit  as to how efficient  refrigerators  and freezes  can be 
made in the future.  Currently, vacuum panels are being developed for  mass production 
and even more efficient  compressors are being developed.  It  is likely  that in ten  years 
time  technical  solutions  will  exist  that  can  save  around  two  thirds  of  the  energy 
consumption  of the base case refrigerator.  Although, it is technically  feasible to design 
and produce refrigerators  and freezers  consuming  significantly  less energy than today's 
models, the first level of energy efficiency  standards is far  away from  the life  cycle cost 
minimum  of the technical  analysis and has a very  short pay-back time of a little over 1 
year. 

4.  What economic effects  is the proposal  likely  to have? 

On  employment 

(i)  Because the  cost  increase  of  new refrigeration  appliances  under  the first phase is 
relatively  small  (around  1%  to  2%)  indeed  in  many  cases,  more  efficient 
refrigerators  present today on the market are no more expensive than  less  efficient 
refrigerators  of equivalent  size - sales will  only be slightly  affected,  if  at all. 

On investment  and the creation  of new businesses 

(ii)  The  present  proposal  and  other  Community  and  Member  States  initiatives 

to 
promote  consumer  awareness  for  energy  saving  in  domestic  appliances  may 
stimulate demands for more efficient  refrigerators, thus stimulating purchases.  The 
component  manufacturers  anyhow  will  have  a  bigger  demand  for  more  efficient 
compressors.  Moreover,  a  large  number  of  inefficient  refrigerators  are  being 
imported  from  outside  the  Community  and  in  particular,  from  Central  and  East 
Europe.  The  Directive  would  prevent  the  importation  of  cheap  and  inefficient 
refrigerators  as  well  as  improving  the  export  of  Community  refrigerators  to 
countries  outside.  Employment  is therefore  unlikely  to be  affected. 

On the  competitive position  of  businesses 

(iii)  The modest average improvements in  efficiency  are relatively  easy to achieve and 
a lengthy adaptation period of 3 years has been given, in order that no manufacturer 
would be unduly  disadvantaged  by the  standards  proposed. 

5.  Does the proposal contain measures to take account of the specific  situation of small and 

medium  sized firms (reduced  or different  requirements etc.)? 

The  adaptation  period  of  3 years  has  been  foreseen  especially  for  the  small  and 
medium  sized  firms,  which  may  otherwise  been  penalized  by  the  introduction  of 
standards,  given  the necessary  investment  involved  in  changing  or  modifying  the 
refrigerator  models. 

Consultation 

6.  List  of the  organisations  which  have been  consulted  about the  proposal  and  outline of 

their main  views 

The Commission has worked for  several  years on the improvement of energy  efficiency 
in  domestic  appliances  in  consultation  with  relevant  organisations.  A  workshop  was 

28 

organised  by  the  Commission  in November  1990 and  all  the major  actors  in  this area 
were  invited.  Representatives  of  appliance  manufacturers,  national  administrators, 
retailers, electricity supply companies, consumers, standard bodies, researchers and other 
experts,  and  over  120 participants  attended.  Positive  reactions  were  expressed  by  the 
majority  of representatives.  A second  workshop  was  organised  by the  Commission  in 
April  1992  to  discuss  the  methodologies  for  setting  energy  efficiency  standards  for 
domestic  refrigerators,  to  which  all  interested  parties  were  again  invited.  At  the 
workshop, a number of representatives of the appliance manufacturing  industry, stressed 
the need to fully  investigate the possibilities for voluntary  agreements by the industry to 
improve  appliance  efficiencies.  Several  discussions  on  this  topic  were  held  between 
representatives from  the industry and in particular CECED, the European Association of 
Electrical Appliance Manufacturers and Commission officials assisted by various experts. 
Progress  was  also  discussed  in  a  number  of  meetings  held  with  the  Member  State 
administrations.  Due  to the  highly  competitive  structure  of the  sector  any  significant 
Community wide voluntary  agreement was extremely hard to agree and the possibilities 
of  a voluntary  agreement  was abandoned  by  manufacturers.  A last offer  of  voluntary 
agreement was made recently  (November  1993) to CECED, but the idea of a voluntary 
agreement has been definitively turned down by CECED. After several meetings between 
Commission officials  and manufacturers, the General Secretary of CECED, Mr. Collins, 
implicitly accepted the envisaged legislation with his letter to DG XVII of 7 May 1993. 

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ISSN 0254-1475 

COM(94) 521 final 

DOCUMENTS 

EN 

06  08 

Catalogue number : CB-CO-94-558-EN-C 

ISBN 92-77-82745-9 

Office for Official Publications of the European Communities 
1^2985 Luxembourg 

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