As BEE demands more energy efficient products, companies raise AC prices

by Raghav on January 25, 2012

Summer is fast approaching and as consumers flock to stores to buy AC’s, it is normal that they find prices to be slightly more now BEE rating compared to off season. It is a simple equation of demand and supply. But this time, it is not just because of the demand that the prices of AC’s are increasing. The Bureau of Energy Efficiency (BEE), which gives ratings to electronic appliances’ based on their power consumption, has raised the norms, demanding for more energy efficient goods.

This means, an AC that was rated as 5 stars last year, would only be good for 4 stars this year. And those which were rated 1 star last year; won’t have any rating this year at all (and hence will not be available in the market). Since the rating is on a 5 point scale, companies have to invest more to produce a whole new range of 5 stars products. This is not just a symbolic raise in rating, but means more energy efficient products. A 5 star rated AC in 2012 consumes less power than one that was rated 5 star in 2011.

These new norms have already come into force and some companies have already raised the prices by as much as 15%. As you may imagine, the price rise is not just for the AC’s but for all consumer appliances that are rated by BEE.

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