Monday, September 8, 2008

Green bulb subsidy may switch off

The Dominion Post
08 September 2008
By KAY BLUNDELL and GREER MCDONALD

Moteliers have been making the most of corporate welfare by replacing candescent light bulbs with the government subsidized energy efficient light bulbs. There has been some controversy about the long term benefits (see post here), however many moteliers have recognised the immediate economic return on investment and are ditching the older candesant light bulbs enmasse.

Consumers could be in for a shock when the Government eventually lifts its subsidy on energy efficient light bulbs.

The Electricity Commission is subsidising three brands of compact fluorescent lamps - Energy Mad, Philips and Ozram - to the tune of about $3 million this half-year with the aim of selling two million by November.

A commission spokesman said the flat subsidisation rate till June was about $1 per ordinary CFL bulb, but that had now been broadened to include halogens and CFLs with various fittings.

At present the bulbs were about the same price as incandescent bulbs but once the subsidies were lifted consumers would be paying more for CFLs.

"We started with pilot schemes with one company and have now broadened it out to three companies with a wider range of products."

The Government's largest energy efficiency project - The "Efficient Lighting Project" - was launched by Energy Minister David Parker last week.

It aims to replace candescent bulbs with Energy Mad's new Ecobulb light bulbs - with a target of the sale and installation of more than one million nationwide.

The launch took place at the Devane residence in Wellington, where the family had begun to replace their ordinary light bulbs and halogens with Ecobulb light bulbs.

Replacing all their bulbs was aimed at saving more than $9000 in electricity over the lifetime of the Ecobulb replacements.

Energy Mad managing director Chris Mardon acknowledged recent coverage about some energy efficient bulbs smoking when they fail.

However, Ecobulbs did not pose a fire risk because they used only "20 per cent of the power of standard bulbs which decreases heat generation".

Last year, the Electricity Commission spent $2.7 million on subsidising selected companies' bulbs and though there were plans for further subsidisation after Christmas, the funding would be withdrawn at some stage.

"The commission has never said it would support CFLs for ever. One of our objectives is to achieve a market transformation then we can step away - once we have overcome certain barriers and stimulated the market," the spokesman said.

Fire Service representatives have met Government watchdog Energy Safety, the Energy Conservation Authority and the Economic Development Ministry to discuss 23 complaints about CFLs.

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