Global Action Plan has published a report on energy inefficient household appliances, which calculates that UK domestic energy bills could be cut by a third, or £2billion a year, if they were replaced with more efficient models. As a result, the environmental charity has called on the government to address this ‘policy black hole’ and to incentivise consumers by introducing a scrappage scheme.

30 April 2014 – A new report published today, Promoting Highly Efficient Electrical Appliances, reveals that UK households could instantly cut their energy bills by £75 – £2billion a year for all UK households – simply by switching to energy efficient domestic appliances. By 2030, these savings could rise to £99 per household – a total of £3.8billion for all UK households – as a result of reductions in the amount of investment required in low carbon generation to decarbonise electricity supply.

The report, commissioned by environmental charity Global Action Plan (GAP) and produced by the Institute for Public Policy Research (IPPR), shows UK consumers spend £8billion a year powering domestic electrical appliances – around £300 per household. Currently appliances and lighting account for a quarter of the UK’s energy consumption and over 40 per cent of household energy bills.

As energy prices continue to soar, GAP is calling on the Government to urgently introduce financial incentives to enable consumers to immediately slash bills by boosting uptake of energy efficient appliances.

By introducing a scrappage scheme to help consumers replace inefficient appliances, or tax credits when new, more efficient ones are purchased, the Government could put the power back in the hands of consumers to take control of their household bills.

Trewin Restorick, CEO of Global Action Plan, said: “Consumers are hit twice when faced with rising energy bills. They’re paying for unnecessary electricity usage due to energy-inefficient appliances, and then forking out for ever-increasing subsidies to produce energy that is not actually needed in the first place.”

“We need to boost the uptake of energy efficient appliances in the UK. Financial incentives that directly benefit customers’ pockets are key. Helping consumers lower energy consumption through using more efficient appliances, resulting in lower bills and reduced carbon emissions, is a win-win situation. What’s more, the benefits kick-in immediately for both consumers and the environment.”

“Better labelling systems are also crucial to allow consumers to make informed choices when buying new appliances. The current labelling system is confusing, and consumers often mistake A-rated fridge freezers as being highly efficient, when in fact they are now the least efficient models on the market.”

The average UK household currently owns 41 electrical appliances, not including lighting, which has risen from an average of 12 household electrical appliances in the 1970s. If consumers switched from their old appliances to more efficient ones the savings would be immediate and significant. For example, a household could save £58 a year by switching from a ten year old fridge freezer to an energy efficient model. A ten year old fridge freezer currently adds £82 a year to energy bills, whereas energy efficient models add on average just £24.

For further information, please visit www.globalactionplan.org.uk or read the report.