Transcription
4. Toolkit: Monitoring, verificationand Enforcement (MV&E)Mark EllisParis, 17 May 2018IEA OECD/IEA 2018
ScenarioYou’ve been given 300,000 to improve compliance rates inyour S&L programmeHow do you go about deciding on the most effective ways tospend this?How would you spend this? OECD/IEA 2018
Why is compliance important?Ensure that consumerreceive the performancethey are paying forEnsure that supplierswhich invest more inenergy efficiency do notlose market share tounscrupulouscompetitorsComplianceEnsure governments getthe outcomes they expect(programme objectives)Safeguards the integrityof the programme – hardto win back confidenceonce lost OECD/IEA 2018
Group exercise What are some of the ways toincrease compliance rates? OECD/IEA 2018
What are the Options?1.2.3.4.5.6.7.8.9.10.11.12.13.14.Test more productsBuild a better laboratoryBetter educate product suppliersPublish list of offenders & actions takenInspect more labels in storesImproved powers to act (legislation)Improve the range of sanctions availablePublish rules / enforcement policy documentMake it easier for suppliers to demonstrate/report complianceImprove targeting of testingDevelop in-house manual for staffPublish testing targets in advanceEnsure that enforcement action is taken swiftlyAdd requirements for retailers OECD/IEA 2018
Compliance Best PracticeEffective Compliance Frameworksaim to .EncourageVoluntaryComplianceDeter Noncompliance OECD/IEA 2018
Steps to encourage voluntary mple todemonstratecompliancevoluntarycompliance OECD/IEA 2018
Encouraging Compliance Are the requirements for suppliers and retailers clear and accessible? Are they understandable (not ‘legalese’) Is registration (or alternatives) simple and effective, online, includes FAQ and guides? Is is clear what documentation is required? Are all the relevant documents relating to MV&E clearly identified on the website? Are enforcement procedures and sanctions obvious? Are all staff clear about their roles and responsibilities? e.g. Is there a staff ‘operationsmanual’? Are you reaching ‘new’ stakeholders as they enter the market?Benefits Avoids time-consuming questions to busy staff Avoids wasting time on unresolved cases, delayed action OECD/IEA 2018
Example: Singapore OECD/IEA 2018
Example: MEPS Verification Process: (updated).pdf OECD/IEA 2018
Example: Australiahttps://youtu.be/lOZ6RCXz18Q?t 19 OECD/IEA 2018
Compliance Best Practice S&L compliance frameworks are designed to:a) Encourage voluntary compliance, andb) Deter non-compliance OECD/IEA 2018
Steps to deter non-complianceDeterrence theory: There must be a credible likelihood of detecting violations Swift, certain, and appropriate sanctions upon detection A perception among the regulated firms that these detection and sanctionelements are present1.Make sure all stakeholders understand their obligations2.Make it simple to demonstrate compliance3.Increase the risk that instances of non-compliance will be discovered4.Take corrective action quickly to minimise damage (to all)5.Make penalties proportional to the extent of transgression butsufficient to be an effective deterrent6.Ensure corrective action is visible - to deter others OECD/IEA 2018
Which is the better deterrent? OECD/IEA 2018
3. Increase the risk that non-compliance will be discoveredIn most regulated markets: 20% of the regulated population will automatically complywith any regulation 5% will attempt to evade it and the remaining 75% will comply as long as they think thatthe 5% will be caught and punished. OECD/IEA 2018
3. Increase the risk that non-compliance will be discoveredMarket surveillanceVerification testingIncrease riskCommunicatecompliance activityReport enforcementaction OECD/IEA 2018
Market Surveillance: labelling display and registration monitoring Periodically monitor products within a sample of stores to check that:- All required products are correctly labelled,- All labels conform to requirements,- Fake labels are not being used- Products on the market are registered (where required) Market surveillance can be undertaken by:- Government staff, Consumer groups, Contractors Respond to any observed instances of non-compliance & publish resultsBenefit Early detection of labelling errors can avoid more serious non-compliance Demonstrates to suppliers and retailers that government is being vigilant OECD/IEA 2018
Verification testing Testing is expensive! Needed, but only worth it if:- It is done to required level of accuracy- Is defensible- Is acted upon Since you can only test a small proportion on models on themarket – how do you increase cost-effectiveness?- Test products most likely to be non-compliant- Co-ordinate or share testing with other countries- Ensure tests are enforcible OECD/IEA 2018
Test products most likely to be non-compliant Random selection represents an inefficient allocation of resources- End up testing high proportion of compliant products Identify ‘risk factors’ for products most likely to be non-compliant and have mostimpact, e.g. Models with high market share Models with least credible claims. At brand level:- Does the brand have a good record of compliance?- Here and/or in other economies? At a model level:- What is the quality of evidence for claims – is the test lab known and credible?- Have competitors provided evidence of non-compliance?- Are the claims of performance excessively high - unbelievable? OECD/IEA 2018
Co-ordinate or share testing with other countries Numerous options to minimize costs and increaseeffectiveness: Co-ordinate joint market surveillance with neighbouringeconomies Share results of market surveillance to better target future actions Use quality laboratories in neighbouring economies Commission tests in product country of origin OECD/IEA 2018
Example – European surveillance coordination Various EU-wide (EU funded) projects EEPLIANT- 13 Market Surveillance Authorities (MSAs) from EU- Organises coordinated MV&E activities, including product testing of LEDs, printers andheaters- Electronic database allows MSAs to share plans and results of market surveillanceactivities in confidence- Publication of Best Practice Guide Industrial and Tertiary Product Testing and Application of Standards (INTAS) OECD/IEA 2018
4. Take corrective action quickly to minimise damage Any delay in taking corrective actions means non-compliant products remainingin the market- More energy savings lost- Higher household expenditure Most non-compliance can be quickly resolved, with minor enforcementEnsure internalprocedures areclearEnsure staffresponsibilities& decisionmaking areclearEnsure optionsfor correctiveactions areappropriate OECD/IEA 2018
5. Make penalties proportional to the extent of transgressionCosts & timeProgrammes need a range of enforcement tools- To act appropriately to suspected transgressionsand quickly to minimise damage OECD/IEA 2018
Example - UK response to non-complianceWe operate in accordance with theRegulators’ Code, which requires usto: support compliance andgrowth engage with those weregulate base our activity on risk share information offer clear guidancebe transparent.We alwaysact proportionately,depending on the nature of the noncompliance.We are approachable and do not takeenforcement action just because abusiness asks us a question or tells us thatthey have a problem.Source: BEIS (2017) OECD/IEA 2018
6. Ensure corrective action is visible - to deter othersPlans for complianceactivityResults of marketsurveillanceHighVisibilityTesting activity andresults (onceresolved)Enforcement actionstaken OECD/IEA 2018
Reporting testing results OECD/IEA 2018
Reporting enforcement actions18/05/201604/01/2016Air conditionerIncandescent lampSolAir WorldOlsentSWW(R)-7.2GWA55 28W28W Halogen Globe Dimmable Clear Fancy RoundP45 28W04/01/2016Incandescent lampOlsent14/12/2015Incandescent lampOlsentQ35 MR16/CG/36 12V-35W F12T GU5.3 ELV Reflector12/11/2015Incandescent lampGE LightingHalogen GLS Lamp 100W 240V D005/11/2015Incandescent lampFozzU5.3 12V 25W 60* tungsten halogen ELV 7/08/201513/08/201530/07/201530/07/2015Air conditionerIncandescent lampIncandescent lampSelf-ballasted compact fluorescent lampSelf-ballasted compact fluorescent lampSelf-ballasted compact fluorescent lampSelf-ballasted compact fluorescent lampSelf-ballasted compact fluorescent lampPioneer entOlsentGTIO-100A6/GTE-100A664543 A ECO 42W 240V B22D64544 A FR ECO 53W E273P414-ES-40K,XEU48-15R80 E27 2700KXEU48-15R80 E27 4000KFE-IISB-18W 2700KFE-AU-15W 2700K09/07/2015Self-ballasted compact fluorescent lampE-StarESSP9W27E27 8w Mini Twist warm white ballasted compact fluorescent lampSelf-ballasted compact fluorescent lampSelf-ballasted compact fluorescent lampComputer pped fluorescent lampNECFT24Mini Twist 13W/827 E27Ambiance A55 11W WW284E5QFL30SSEX-N-HG-36 : 30W T8 Tri-Phosphor Natural5000K OECD/IEA 2018
Example: Suspended products Hong Kong OECD/IEA 2018
Design optionsEntry icationIndependent tests,in-house testing,calculation or selfdeclarationThird-party verificationand/or certification Industry Participant Consumers Government/ProgrammeTotal costs same OECD/IEA 2018
Value of improving non-complianceAssumptionsFridge market p.a.Outcomes200,000Av. Energy consumption(kWh/yr)400Non-compliance rate15%Extent of noncompliance15%Lifetime (yrs)12Cost of electricity( /kWh)0.2Value of lost electricitysavings after one year 4.32millionAfter ten years 43millionReducing non-compliance rate to 10%Saving after one yearCost benefit ratio( 0.3m/yr)After ten years 1.44 million1:4.8 14.4 million OECD/IEA 2018
Scenario How would you spend 300,000 on improving compliance? OECD/IEA 2018
What would I do?Item Dedicated compliance staff110,000Highlight compliance on website, promotion ofenforcement policy25,000Labelling survey25,000Round-robin tests60,000Compliance tests80,000-Drafting enforcement policy-Drafting internal procedures-Testing selection criteria-Managing tests, reporting on results-Organising legislative change if necessaryTotal 300,000 OECD/IEA 2018
Essential elements of compliance regimes Mechanism to facilitate compliance Market surveillance Verification testing Enforcement Communication, reporting, feedback Legal and administrative framework Budget and resource allocation Evaluation processes OECD/IEA 2018
www.iea.orgIEA OECD/IEA 2018
Sources of further d-enforcement-for-appliance-standards-labeling-1 OECD/IEA 2018
Sources of further dgebase/item/2017-05-16 OECD/IEA 2018
Example: UK enforcement options Range of activity: from advice to enforcement options For first and small infringements may be support Advice For larger serious breach, fines and legal proceedings. Example below – large fine for significant breach of MEPS [Fines can include: lost energy savings, loss of carbon reductions, etc] OECD/IEA 2018
Testing: ensure test results are enforceable If results are not repeatable and reproducible between labs –enforcement not possible Significant variations mean that the costs of testing is wasted Do you know how the results of different labs compare? A program of inter-laboratory comparison and witness testing the onlyway to minimise variations OECD/IEA 2018
Reporting targets for compliance activity OECD/IEA 2018
www.iea.orgIEA OECD/IEA 2018
12/11/2015 Incandescent lamp GE Lighting Halogen GLS Lamp 100W 240V D0 05/11/2015 Incandescent lamp Fozz U5.3 12V 25W 60* tungsten halogen ELV Reflector 05/11/2015 Air conditioner Pioneer International GTIO-100A6/GTE-100A6 . 17/08/2015 Self-ballasted compact fluoresc
