Are you unknowingly losing money? Audit reveals billions wasted by Aussies on inefficient appliances
- Replies 0
Did you know that simply choosing the wrong fridge or washing machine could be costing you thousands over the years? According to a recent audit, Australians are missing out on billions of dollars in savings due to poor management of the national appliance efficiency scheme. If you’ve ever trusted those little star stickers on your dishwasher or air conditioner, you might want to read on—because the system behind them isn’t working as well as it should.
Billions Down the Drain: What’s Going Wrong?
The Greenhouse and Energy Minimum Standards (GEMS) Act was designed to help Aussies save money and cut down on emissions by ensuring appliances meet minimum energy performance standards. You’ve probably seen the energy rating labels—those familiar star stickers—on everything from fridges to TVs. The more stars, the more efficient the appliance (in theory, at least).
But a scathing report from the Australian National Audit Office (ANAO) has revealed that the Department of Climate Change, Energy, the Environment and Water—the folks in charge of the scheme—haven’t been keeping a close enough eye on things. The audit found that the department isn’t even measuring whether the program is actually reducing energy use or emissions. In other words, we don’t really know if it’s working!
Why Does This Matter for Your Wallet?
Alan Pears, a senior fellow at RMIT and Melbourne University (and one of the brains behind Victoria’s original appliance energy standards), says the consequences are real: 'Because our standards are quite weak, we don’t necessarily get the most efficient products.' That means higher power bills for all of us.
The department claims the scheme has saved households and businesses between $12 billion and $18 billion since 2012. But Pears points out that such a wide range suggests they’re not really sure how much we’re saving—or if we’re saving as much as we could be.
How Do We Compare to the Rest of the World?
While Australia’s standards are lagging, other regions are powering ahead. The European Union, for example, recently introduced strict new rules on how much energy appliances can use in standby mode. They estimate this will save consumers nearly a billion dollars by 2030. If Australia raised its standards to match, Pears says every household and business could save thousands over the life of each appliance.
Is the System Being Policed Properly?
Here’s where things get even more concerning. Under the GEMS Act, companies must test their appliances in approved labs and send the results to the department. The department can then do 'check tests' to make sure the products really are as efficient as claimed. But the audit found that these check tests have dropped dramatically—from 188 in 2013-14 to just 61 in 2021-22. That’s a lot less oversight, and it means dodgy products could be slipping through the cracks.
To make matters worse, since 2012, only four infringement notices have been issued—and none have been paid or enforced. It’s a bit like having speed cameras but never actually fining anyone for speeding!
Who’s Watching the Watchers?
The audit also found that, in some cases, the same person in the department was both assessing and approving appliances. That’s a recipe for mistakes—or worse. Without proper checks and balances, there’s a risk that inefficient products could be approved by accident (or, in a worst-case scenario, on purpose).
Are the Star Ratings Misleading?
Even if you’re diligent about checking the star ratings, you might not be getting the full picture. Pears warns that the star system is based on the size of the appliance, not its actual energy use. So a giant seven-star TV could still use more power than a small three-star one. He’s calling for clearer information and better education so consumers can make truly informed choices.
What’s Being Done About It?
The good news is that the department has accepted all nine of the audit’s recommendations and says it’s already working to fix the problems. They’ve set up a taskforce and are expanding check testing facilities to catch more non-compliant products. The ANAO also wants the department to focus its testing on the riskiest areas and to develop better ways to measure whether the scheme is actually working.
What Can You Do to Protect Your Savings?
Have you ever been surprised by your power bill after buying a supposedly 'efficient' appliance? Do you think the star rating system is clear enough, or have you found it confusing? What would help you make better choices? Share your experiences and tips in the comments below.
Billions Down the Drain: What’s Going Wrong?
The Greenhouse and Energy Minimum Standards (GEMS) Act was designed to help Aussies save money and cut down on emissions by ensuring appliances meet minimum energy performance standards. You’ve probably seen the energy rating labels—those familiar star stickers—on everything from fridges to TVs. The more stars, the more efficient the appliance (in theory, at least).
A national audit identified poor administration of Australia's appliance energy efficiency scheme, with the program's impact on emissions and energy use left unmeasured. Credit: bymuratdeniz / iStock
But a scathing report from the Australian National Audit Office (ANAO) has revealed that the Department of Climate Change, Energy, the Environment and Water—the folks in charge of the scheme—haven’t been keeping a close enough eye on things. The audit found that the department isn’t even measuring whether the program is actually reducing energy use or emissions. In other words, we don’t really know if it’s working!
Why Does This Matter for Your Wallet?
Alan Pears, a senior fellow at RMIT and Melbourne University (and one of the brains behind Victoria’s original appliance energy standards), says the consequences are real: 'Because our standards are quite weak, we don’t necessarily get the most efficient products.' That means higher power bills for all of us.
The department claims the scheme has saved households and businesses between $12 billion and $18 billion since 2012. But Pears points out that such a wide range suggests they’re not really sure how much we’re saving—or if we’re saving as much as we could be.
How Do We Compare to the Rest of the World?
While Australia’s standards are lagging, other regions are powering ahead. The European Union, for example, recently introduced strict new rules on how much energy appliances can use in standby mode. They estimate this will save consumers nearly a billion dollars by 2030. If Australia raised its standards to match, Pears says every household and business could save thousands over the life of each appliance.
Is the System Being Policed Properly?
Here’s where things get even more concerning. Under the GEMS Act, companies must test their appliances in approved labs and send the results to the department. The department can then do 'check tests' to make sure the products really are as efficient as claimed. But the audit found that these check tests have dropped dramatically—from 188 in 2013-14 to just 61 in 2021-22. That’s a lot less oversight, and it means dodgy products could be slipping through the cracks.
Who’s Watching the Watchers?
The audit also found that, in some cases, the same person in the department was both assessing and approving appliances. That’s a recipe for mistakes—or worse. Without proper checks and balances, there’s a risk that inefficient products could be approved by accident (or, in a worst-case scenario, on purpose).
Are the Star Ratings Misleading?
Even if you’re diligent about checking the star ratings, you might not be getting the full picture. Pears warns that the star system is based on the size of the appliance, not its actual energy use. So a giant seven-star TV could still use more power than a small three-star one. He’s calling for clearer information and better education so consumers can make truly informed choices.
What’s Being Done About It?
The good news is that the department has accepted all nine of the audit’s recommendations and says it’s already working to fix the problems. They’ve set up a taskforce and are expanding check testing facilities to catch more non-compliant products. The ANAO also wants the department to focus its testing on the riskiest areas and to develop better ways to measure whether the scheme is actually working.
What Can You Do to Protect Your Savings?
- Don’t just trust the stars: Look at the actual energy consumption figures on the label, and compare appliances of similar size.
- Do your research: Check independent reviews and guides, and look for products that meet or exceed international standards.
- Ask questions: If you’re buying a new appliance, ask the retailer about its real-world energy use.
- Stay informed: Keep an eye out for updates to the scheme and new standards.
