Exporters nix proposed energy label, standards on products

MANILA, Philippines - Exporters are opposing a proposed legislation requiring manufacturers, importers and dealers to comply with minimum energy performance standards system and display an energy label showing the energy requirement and consumption efficiency of the products.

In a position paper, the Philippine Exporters Confederation Inc. (Philexport) said the group is against a provision under a proposed energy efficiency and conservation law due to additional business-related administrative procedures it would entail which, in turn, would increase the cost of doing business in the country.

Philexport said the proposed measure would have adverse impact on micro, small and medium enterprises given their lack of financing options to comply with required mechanism.

“MSMEs particularly do not have the mechanism to measure their energy consumption. The minimum energy performance standards as suggested in the bill may not be immediately affordable to them, noting the absence of financing options,” it said.

In addition, Philexport said companies lack the source data by which they can establish baseline numbers for their target reduction of energy consumption.

The legislation, the group noted, also requires companies to develop energy efficiency and energy conservation plans and programs under the minimum energy performance standards system for equipment, appliances, vehicles and electronic devices to ensure the least energy consumption.

Philexport also cited the proposed law’s provision mandating the private sector to undertake a number of data monitoring and reporting, hire additional manpower with the technical capacity to undertake energy audit and implement energy efficiency and energy  measures.

“These add up to the cost of doing business. These run counter to the current administration’s initiative of streamlining business-related administrative procedures and reducing the cost of doing business,” the group said.

According to the export group, energy efficiency and energy conservation are best pursued at the company level depending on its set-up and capacities.

“Reduced costs because of lesser energy consumption is the incentive itself. Businesses are already reeling from so many regulations. Any additional regulatory costs and procedure will negatively impact on the competitiveness of enterprises in the country, particularly MSMEs,” Philexport said.

Philexport instead is proposing to consider distribution utilities, electric cooperatives, and professional organizations which can initiate technically-sound and practical conservation measures that are auditable and can be duplicated.