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# Training Guide for retail sales staff - Energy Labelling

Training Guide for retail sales staff - Energy Labelling

## 2.6 continued METHOD

2.6 continued METHOD CONTENT RESOURCES Page 14 CALCULATING MORE ACCURATE FIGURES SHOW Example: Refrigerator AND WORK Annual Running Costs THROUGH Energy Consumption x electricity tariff = EXAMPLES Annual Running Cost 670 kWh/year x 13.0 c/kWh ÷ 100 = \$87.10 Lifetime Running Costs Lifetime Running Costs = Annual Running Costs x 12 years \$87.10 x 12 = \$1045 STATE / READ To determine a more accurate figure for the Annual Running Cost of an appliance, multiply the energy consumption figure in the coloured box by the cost of your customer’s electricity tariff. Electricity tariffs vary across States however, for the purpose of demonstrating calculations, we will use an electricity tariff of 13.0 cents/kWh. When calculating running costs for your customer use the tariff relevant for your State. Tariffs can be sourced through energy retailers in your State or from Appendix 2 of the Information Manual. To determine a more accurate figure for the Lifetime Running Cost of the appliance multiply the Annual Running Cost by 12 years. 12 years is the average lifetime for most appliances before they are replaced. Remember in your calculations to divide the tariff by 100 to covert to dollars. EXERCISE 1. Work out the Annual Running Cost and the Lifetime Running Cost for: A. A Refrigerator with a star rating of 3.5 and an energy consumption figure of 630 kWh/year. ANSWERS Annual Running Costs = 630 kWh/year x 13.0 cents/kWh ÷ 100 = \$ 81.90 Lifetime Running Costs = \$81.90 x 12 years = \$983 W/B 13 W/B 13

2.6 continued METHOD CONTENT RESOURCES B. A Refrigerator with a star rating of 1.5 and an energy consumption figure of 1030 kWh/year Annual Running Costs = 1030 kWh/year x 13.0 cents/kWh ÷ 100 = \$133.90 Lifetime Running Costs = \$133.90 x 12 years = \$1607 5 minutes USING RUNNING COSTS TO COMPARE APPLIANCES STATE / READ You can use the running costs of the appliance as a “second price tag” to help the customer choose between models that have similar features. Also by adding the purchase price to the lifetime running cost you can give the customer a more accurate picture of the TOTAL COST of an appliance. Your customer might find that savings they make by using less electricity and the benefits to the environment out weigh the difference in the purchase price. – This can be used as a great selling point! The savings in running costs for one high star rated appliance may not seem to amount to much. However, the savings if a home had all high star rated appliances can account for a considerable amount over time, both in dollars and greenhouse gas emissions. EXERCISE Using the information in the Workbook determine which refrigerator model represents the greatest value over it’s lifetime. ANSWERS Answer: Model 1 – \$2091.00 Model 2 – \$2225.00 Model 3 – \$2051.00 – best lifetime value Model 4 – \$2240.00 STATE / READ By providing objective information and showing understanding and concern about the operating cost of an appliance, sales staff can help win the confidence of their customers. W/B 14 W/B 14 W/B 14 Page 15

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