CELEX: 51994PC0521
Language: en
Date: 1994-12-07
Title: Proposal for a EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE on energy efficiency requirements for household electric refrigerators, freezers and their combinations

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)
 ---pagebreak---  ---pagebreak---                                      CONTENTS
                                                         Page
Explanatory Memorandum                                     3
I.       Energy Efficiency Background                      3
II.       Initiatives on Household Equipment and
         Refrigeration Appliances                          4
III.      Setting the Efficiency Standards                 6
IV.       Impact on the Industry                           8
V.        Administrative Arrangements Proposed             8
VI.       The Need for Community Legislation and
          Consultations with Interested Parties           10
VII.      Scope of the Proposed Directive                 13
VIII.    Results Expected from the Proposed Directive     13
          and Accompanying Measures
IX.       Impact on Society as a Whole                    14
Proposal for a European Parliament and Council Directive  16
 ---pagebreak---                               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)
      OJNoC20, 22.1.1985, p. 1.
(2)
      OJNoC241, 25.9.1986, p. 1.
(3)
      Article 130r of the Single European Act, 1987.
 ---pagebreak--- 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
C0 2 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 C0 2 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 C0 2 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).
(7)
      OJ No L 237, 22.9.1993, p. 28.
(8)
      OJ No L 167, 22.6.1992, p. 17.
(9)
      OJ No L 297, 13.10.1992, p. 16.
(10)
      OJNoL45, 17.2.1994, p. 1.
 ---pagebreak---  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
(ii)
       Refrigerators, freezers, and combinations of these.
(12)
       European Committee for Standardisation Standard EN 153 of May 1990.
(13)
       OJ No L 109, 26.4.1983, p. 8 and OJ No L 81, 26.3.1988, p. 75.
 ---pagebreak--- 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.
 ---pagebreak--- 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 C0 2
 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).
 ---pagebreak--- 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
to pass the production cost increase to consumers s^ô -: : imr. ;ction of a minimum
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
refrigerators will dec- ' f -"       v* same time export, to countries outside, vhert minimum
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
 ---pagebreak--- 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)
      Council Resolution on a new approach to technical harmonisation and standards,
      OJNoC 136, 4.6.1985, p. 1.
(16)
      Council Resolutions on a global approach to conformity assessment, OJ No C 10,
       16.1.1990, p. 1.
(17)
      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.
(18)
      O J N o L 7 7 , 26.3.1993, p. 29.
(19)
      OJ No L 139, 23.5.1989, p. 19, as amended by OJ No L 126, 12.5.1992, p. 11.
 ---pagebreak--- 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
standards. It is based on Article 100a of the treaty, which calls for Community measure to
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 C0 2 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 C0 2
emissions), the competence is shared with Member States. All Member States have to
contribute to achieve the C0 2 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 C0 2 emissions must be taken at least at Community level to
(20)
      O J N o C 2 3 , 31.1.1992, p. 8.
                                                 10
 ---pagebreak--- 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 C0 2 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 C0 2 .
(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
 ---pagebreak--- 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 C0 2 , 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
with different regulations; therefore, the federal administration was requested by
manufacturers to introduce federal standards.
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 C0 2
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
 ---pagebreak--- (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
under this Directive could give the following electricity and consequent C02(21) emission
reductions:
(21)
      Based on the Community electricity generation mix forecast for the period in question.
                                               13
 ---pagebreak---                            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                            108         107         104         100
 - with standards                               108         93           73         60
 savings through standards                       :          14          31          40
 CQ2 emissions avoided through                               6           14          17
 standards HO6 tonnes/yr)
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
 ---pagebreak---     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 C0 2
emission reduction and the economic saving satisfy the "no-regret" criteria.
                                                15
 ---pagebreak---                                           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
 ---pagebreak--- 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)
      OJNoL 157, 9.6.1989, p. 32.
(6)
      OJNoL307, 8.11.1991, p. 34.
(7)
      OJNoL297, 13.10.1992, p. 16.
(K)
      OJNoL45, 17.2.1994, p. 1.
(9)
      OJNoC 136, 4.6.1985, p. 1.
(10)
      OJNoL220, 30.8.1993, p. 23.
                                                17
 ---pagebreak--- 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.
                                           Affole 4
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.
                                               IS
 ---pagebreak---                                             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
 ---pagebreak---                                           ArtifiullQ
This Directive shall enter into force on the twentieth day following that of its publication in
the Official Journal of the European Communities.
                                          Article U
This Directive is addressed to the Member States.
Done at Brussels,
For the European Parliament                                   For the Council
The President                                                 The President
                                              20
 ---pagebreak---                                                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          Refrigerator without Frozen Food Compartment(2)
           2           Refrigerator with 1 Star Frozen Food Compartment
           3           Refrigerator with 2 Star Frozen Food Compartment
           4           Refrigerator with 3 Star Frozen Food Compartment
           5           Refrigerator with 4 Star Freezer
           6           Refrigerator-Cellar
           7           Chest Freezer
           8           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
 ---pagebreak---                          Wc (weighting co-efficient)
                 Cellar compartment                0.75
                 Fresh food compartment            1.00
                 0°C compartment                   1.25
                 0 Star compartment                1.25
                 1 star compartment                 1.55
                 2 star compartment                1.85
                 3 and 4 star compartment          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          Refrigerator w/o FFC(3)                       (0.225 x Vadj   + 237) / 365
      2          Refrigerator with 1 Star FFC                  (0.599 x Vadj   + 178) / 365
      3          Refrigerator with 2 Star FFC                  (0.437 x Vadj   + 238) / 365
      4          Refrigerator with 3 Star FFC                  (0.616 x Vadj   + 221) / 365
      5          Refrigerator with 4 Star Freezer              (0.778 x Vadj   + 303) / 365
      6          Refrigerator-Cellar                           (0.225 x Vadj   + 237) / 365
      7          Chest Freezer                                 (0.480 x Vadj   + 195) / 365
      8          Upright Freezer                               (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
 ---pagebreak---                                           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
 ---pagebreak---    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
 ---pagebreak---                                      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
 ---pagebreak---                                 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
 ---pagebreak---     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
 ---pagebreak---     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
 ---pagebreak--- 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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 ---pagebreak---  ---pagebreak---                                                                      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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