Ecodesign for Energy-Related Products and Energy Information (Lighting Products) Regulations 2021

Lord Grantchester Excerpts

Tuesday 14th September 2021 Grand Committee

[Baroness Ritchie of Downpatrick (Non-Afl)]

I thank the Minister for his explanation of these regulations. This is my first time in a statutory instrument debate actually in the Moses Room because I always used Zoom over the last 15 months; notwithstanding that, I am very pleased to see everybody in the flesh.

I have certain questions. I am not opposed to these regulations or what they contain because I firmly believe in striving for climate change mitigation and for energy efficiency, which would help mitigate costs for the consumer. However, in that regard I have some questions and I hope the Minister might be able to provide me with answers. Does the new labelling scale indicate levels of greater safety? I do not think there is an indication of that. Who will monitor the safety of all these lighting appliances? Will there be reports on carbon reduction in relation to these lighting products to COP 26 in Glasgow in a couple of months’ time? Will Parliament receive an ongoing annual report about achieving zero targets in relation to lighting products?

I would be most grateful if the Minister could clarify whether there is any difference between what currently exists and what will exist under these new labelling arrangements. I would also like to ask the Minister what training will be provided to suppliers in terms of the new energy labels. I always fear that, when new labelling comes into play, a cost to the suppliers and those involved in the construction will be attached. I hope that the reduction in energy bills will not result in an increase, or no reduction, because of the costs that will be involved in the manufacture of these new labels. Could the Minister provide me with some detail on that? Will funding support be provided to small suppliers, because they will not have the type of financial outlay that bigger suppliers will?

Apart from flag designations, what other technical differences could exist? Could the Minister advise on that? Will electrical products conform to energy efficiency and climate change mitigation requirements? How will all this assist business development?

I notice that two of the regulations refer to the Northern Ireland protocol. I am glad to note that these are not areas where the contention will apply and that, generally, for these goods and services, there have been no impediments and there will not, we hope, be any. Could the Minister indicate whether he has received specific representations or overtures in relation to the application of the protocol? I note that these regulations apply to England, Scotland and Wales; I therefore assume that the Department for the Economy in Northern Ireland will have responsibility for lighting appliances from the Northern Ireland protocol perspective.

I look forward to the Minister’s answers on this welcome piece of legislation.

[Lord Grantchester (Lab)]

I thank the Minister for his introduction to the two instruments before the Committee today. I am very happy to approve them; I agree that both are uncontroversial as well as sensible and obvious. Energy efficiency continues to be vital in reducing carbon and cost, while we all agree that high cross-border standards should continue to advance in tandem in order to lower barriers to trade. All this helps drive changes in consumer choice towards better products, innovation and improvements.

With the United Kingdom no longer a member state of the EU, it continues to make best sense to maintain improvements in step together across Britain, the United Kingdom and the EU. Can the Minister confirm that that will remain the Government’s intention for the future?

These regulations reflect similar approaches and outcomes. The Committee debated a related instrument at the beginning of June, covering labelling, online and internet selling and welding equipment. Today’s two instruments relate to servers, data-storage products, electronic displays and household products such as washing machines, dishwashers and refrigerators on the one hand and light sources and separate control gears on the other. Both Explanatory Memorandums were exemplary and reflected close dialogue with industry, businesses and associations, which underpins successful regulation and will bring confidence to the public in their engagement.

The energy labelling consultation across four weeks in March and April could be regarded as straightforward in that only three responses were forthcoming, so no guidance is envisaged. However, can the Minister be confident that business will be aware of these changes and how does the department envisage further dissemination of information for the measures to be fully operable from 1 October this year? Can the Minister provide any further details regarding the provisions and improved accuracy of the regulations highlighted under paragraph 10.3 of the memorandum, following input from these three consultees?

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[Lord Callanan (Con)]

My Lords, I thank the noble Baroness, Lady Ritchie, and the noble Lord, Lord Grantchester, for their contributions to this debate.

As I have said before, the Government are committed to delivering on their carbon budgets and net-zero target. The lighting products regulations will make a modest contribution to achieving those targets by setting higher product standards. I will reiterate the figures for the benefit of the noble Lord, Lord Grantchester: 1.8 megatonnes of carbon savings will be made in the UK by 2030, which will increase to 2.6 megatonnes of carbon dioxide by 2050. The amending regulations will help to achieve this by safeguarding the carbon savings that will be secured from our retained EU law.

On the questions posed to me by the noble Baroness, Lady Ritchie, on product safety, which of course is not part of these regulations, the Office for Product Safety and Standards enforces ecodesign and energy labelling requirements placed on manufacturers and importers across the UK. Trading Standards and the Department for the Economy enforce energy labelling requirements placed on retailers in Great Britain and Northern Ireland respectively. The Advertising Standards Authority is responsible for ensuring that marketers’ advertising of energy labelling across various forms of media is in accordance with UK advertising codes. All market surveillance authorities work hard to uphold high product standards on the UK market and to ensure that businesses are supported to understand their obligations.

I can also tell the noble Baroness that there are currently no plans to report on the specific carbon-saving reductions from these regulations, but of course the Government will update Parliament on their carbon-saving targets on a more aggregate level. She also asked about differences between old and new requirements. The main difference introduced by these new energy-labelling requirements is the reinterpretation or reintroduction of the simple A to G scale. Many products under the previous regulations achieved A+ or A++ ratings, so the new scale has been reorientated to make them more understandable for consumers and enable consumers to better discern the most energy-efficient products. This would also encourage innovation by manufacturers to achieve the highest rating. We know that industry is already innovating to meet the highest levels of energy efficiency from lighting products, and we are working with it to understand how these technologies can go further to save even more energy, reduce carbon and of course, at the same time, reduce consumer bills.

On the noble Baroness’s questions about support to businesses, we expect the new requirements to have very limited impact on small businesses. Nevertheless, we have ensured that we work closely with suppliers of the affected products to help them understand the new requirements, and we have liaised closely with trade associations, which play a vital role in providing guidance to small and medium-sized businesses. Despite the new regulations creating some small new costs to manufacturers in the short term, they will in the longer term save businesses and consumers money on their energy bills. We estimate a net saving of something like £18 million a year for businesses up to 2050, due to their reduced energy bills. It is also important to emphasise that no products are being taken off the market; if they are currently on the market, you can sell out supplies of existing products before you need to move on to the newer ones, so nothing will be scrapped and nothing wasted.

With regard to working together with the noble Baroness’s home Province of Northern Ireland in relation to implementation of energy labelling, we work closely with officials in the Northern Ireland Executive to ensure that they are aware of the new requirements, including in relation to enforcement of these regulations on retailers, which, as I said, is the responsibility of the Department for the Economy in Northern Ireland. The OPSS enforces requirements on suppliers across the UK and has an excellent relationship with stakeholders in Northern Ireland.

I move on to the questions from the noble Lord, Lord Grantchester, who asked about awareness of the new regulations. The noble Lord can be assured that we have engaged extensively with the lighting industry to communicate the changes to the regulations, and we have provided guidance and support to manufacturers that have taken the trouble to contact us directly. The OPSS has also communicated widely to remind businesses of the new regulations coming into force.

On light pollution, ecodesign and energy labelling have played an important role in contributing to reducing UK emissions, and we believe that additional savings through better policy could make an important contribution to the Government’s carbon budget targets and to net zero. We are always exploring whether further energy savings could be made by using light products in smarter ways, which would help to contribute to an aim that we all share—that of reducing excess light pollution. The noble Lord can be assured that we will work closely with our colleagues in the Department for Environment, Food and Rural Affairs to see what more can be done with using smart lighting products and so on to reduce light pollution.

To close, I underline once more that the main purpose of these regulations is to raise the minimum energy efficiency of a range of lighting products sold in Great Britain and to reform energy labels for lighting products by rescaling the energy classes and introducing an energy scale. Both SIs will help to avoid technical barriers to trade, while also bringing significant benefits to consumers in the form of reduced energy bills and to the environment in terms of lower emissions. With that, I commend these regulations to the House.

[Lord Grantchester (Lab)]

May I just delay the Committee for one short moment and thank the Minister for clarifying those figures on the savings from the lighting regulations? However, could he perhaps write to me with wider details of what the power generated is in a more total setting of the lighting industry, and what percentage these savings should represent against that total?

[Lord Callanan (Con)]

Of course, I would be very happy to write to the noble Lord with that information.