Electronic goods like AC-fridge can become costlier by up to 10%: New rules of BEE star rating come into effect from today, rising copper prices also affected.

Electronic appliances like refrigerators and air conditioners (AC) may become expensive in the new year, because the new star rating rules of the Bureau of Energy Efficiency (BEE) have come into effect from today (January 1). Due to this, the price of room air conditioner may increase by 10% and the price of refrigerator may increase by 5%.

Companies say that this increase has become necessary due to changes in machinery as per the new rating and use of expensive components. Besides, the weakness of the rupee against the dollar and rising prices of copper in the global market are also putting pressure on manufacturers.

QR-code is mandatory in the new labeling of BEE Star Rating, it should contain complete information about the product.

5-star AC will now be called 4-star

Under the new BEE rules, energy efficiency standards have become stricter. Blue Star Managing Director B. Thiagarajan said that after the implementation of the new rules, today’s 5-star AC will become tomorrow’s 4-star. Similarly, the existing 4-star will be given 3-star rating and 3-star will be given 2-star rating.

According to Thiagarajan, the new 5-star AC will save 10% more electricity than today, but its price will also be about 10% higher. This will be a completely new product that will provide efficiency equivalent to today’s 6 or 7-star ratings.

Star rating mandatory on TV and gas stoves also

BEE has made star labeling mandatory not only for ACs and fridges, but also for many other home appliances. From January 1, it will be necessary to give star rating on television, LPG gas stove, cooling towers and chillers. This will make it easier for customers to understand while purchasing goods, how much electricity or gas will be saved by which appliance.

Prices may reach pre-GST-2.0 cut prices

In September this year, the government had reduced GST on room air conditioners by 10%, which brought relief to the customers. However, now the increase in prices due to change in star rating and cost of raw material will almost eliminate the benefit of GST. Daikin Air Conditioning India Chairman Kanwaljit Java says that after the new prices, prices may reach the same level as they were before the GST cut.

Input costs and rising dollar pressure

Kamal Nandi, Business Head, Godrej Appliances, said that the consumer durables industry is currently facing a double whammy. On one hand there is falling value of rupee and rising prices of commodities like copper, and on the other hand there is change in energy rating. Combining all this, an immediate increase in the prices of ACs by 5-7% and that of refrigerators by 3-5% can be seen.

Voltas hopes companies will get relief from increasing demand

Jayant Balan, senior business leader, Voltas, believes that consumer behavior is changing due to the change in ratings. People are trying to buy before the new prices are implemented, so that they can take advantage of the current price and stock. According to Balan, prices may increase by an average of 7-8% depending on different models and categories, due to which the market has already become volatile.

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