Skip to main content

Heat Pump Water Heaters—COAG Consultation Regulation Impact Statement—Standing Council on Energy and Resources

On 19 July 2013, the Equipment Energy Efficiency Committee released a Consultation Regulation Impact Statement (RIS) which explores options for improving the energy efficiency of air source heat pump water heaters in Australia and New Zealand. Potential problems in the water heater market include lack of information as well as split incentives, in which there is conflict between the interests of householders and intermediaries such as builders and plumbers. Such market failures can result in sub-optimal purchasing decisions in some instances. The proposal is part of a broader strategy for making the market for hot water appliances more energy efficient, as outlined in the National Strategy on Energy Efficiency. The four options examined in the RIS are:

  • mandatory testing, registration and public disclosure of energy efficiency and key performance information;
  • mandatory energy labelling (i.e., disclosing performance information on labels fixed to each product);
  • voluntary energy labelling; and
  • a range of minimum energy performance standards, combined with labelling or disclosure.

Public consultations are being held in Australia and New Zealand from 2–13 August, while written submissions can be provided up until 5:00 pm on Monday 2 September 2013. Following the public consultation process, a Decision RIS will be prepared. For more information, including consultation dates, go to www.energyrating.gov.au. The Consultation RIS was prepared by the Department of Resources, Energy and Tourism and was assessed as adequate by the Office of Best Practice Regulation.