Technology

ENERGY TAX AND COMPETITION IN ENERGY EFFICIENCY

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Necessity of saving energy

Saving of energy and associated resources is becoming a concern of increasing importance day by day. The government and associated heads are taking serious measures to make this a crucial issue in the minds of all customers and users of energy and resources. They have started imposing various tax and duties on numerous levels of energy usage and consumption too. This leads everyone, starting from the shopkeeper at the grocery store to the person switching on the AC inside his room, should understand the importance the matter of energy consumption holds.

Energy saving and completion associated with it

Similarly, air conditioners from LG have taken this matter seriously in their own way. These air conditioners have varieties of star ratings provided by the company itself, so that the customers could refer to the energy saving chart provided by LG while buying the desired models. There is a very important point to note here that this competition amongst various other companies and product providers has increased on the basis of another concept, which is based on energy savings. The more the energy saving capacity a product has, the more it has got the chances of being bought by the customers. This has also greatly increased competitive nature amongst various companies of the same service provider. They try to bring on more advancement in technological efficiency so that a customer is satisfied both, in terms of using the services it provides, as well as in terms of energy savings.

A customer would definitely prefer the product for which he or she has to pay a lesser amount of energy tax than for the one for which he or she has to pay higher. Why not buy a product having more ratings on energy saving chart than the one which has lower ratings? Let us take an example. There is an air cooler from LG which has 4 star ratings on it and there’s a similar product with the same facilities from another company with 2 star ratings on it. Which one would you buy? You would absolutely buy the one from LG, right? You may refer to the energy saving chart if you have any doubts regarding this selection.

Energy taxes and tariffs

Well, increasing taxes on energy and associated choices of the customers has led all companies to indulge into competition for manufacturing of better products. The government has decided to impose higher taxes with increasing demand of energy in future. Note that the cost of supplying electricity to all the consumers is same. The tariff or the tax that is charged from them is different. For example, if the average cost of service is Rs 3/unit, the domestic consumer may be charged at Rs 2.5/unit while an industrial consumer may be charged at Rs 3.5/unit.

 

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