Light bulb law must be backed by education


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The new rule banning the import of traditional incandescent light bulbs sends a clear message that the UAE is serious about saving energy and will hopefully encourage the use of other energy-efficient home appliances. But it also raises an important question: to what extent should authorities interfere in the choices of individuals inside their private residences? One might argue that if the authorities can, rightly, establish standards over how our homes are wired, they can as well, rightly, specify standards for what is plugged into outlets.

As The National reported yesterday, Esma, the Emirates Authority for Standardisation and Metrology announced on Monday that the UAE aims to replace incandescent light bulbs with energy efficient light sources starting from July 1 by not allowing any shipment of low-quality bulbs into the country and clearing the market of them by the end of 2014. Authorities believe that the measure will cut energy use by 500 megawatts and save Dh668 million a year. Approximately Dh452m of those savings will be made by households, which will reduce carbon dioxide emissions by 940,000 tonnes – the equivalent of taking 165,000 cars off the road.

The remainder of the savings will be to the government, in the form of subsidies that won’t need to be paid. But this money should not be considered mere savings; rather the Government could set aside this money as a windfall to be put towards promoting energy efficiency in other parts of the home.

The use of high-quality energy efficient light sources, such as CFLs, LEDs and halogen bulbs, in households in the UAE is undoubtedly a positive step. According to Esma, about 71 per cent of the UAE’s ecological footprint is from carbon, of which 57 per cent comes from households that consume about 20 per cent of their electricity through lighting. More savings could be made with the use of other environmentally efficient technologies at home, like water-saving washing machines and power-friendly air conditioners. But encouraging people to make these choices requires education on how simple measures can play a role in reducing the ecological footprint of each person in the UAE, which has one of the highest rates in the world. The money the Government saves could be used for education campaigns to this end.

The UAE has been making notable efforts to reduce its ecological footprint and move to a green economy away from oil. These efforts should be embraced by all residents, who also have the responsibility to support and contribute, even if it was just through a light bulb.

Why it pays to compare

A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.

Route 1: bank transfer

The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.

Total cost: Dh567.25 - around 2.9 per cent of the total amount

Total received: €4,670.30 

Route 2: online platform

The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.

Total cost: Dh74.10, around 0.4 per cent of the transaction

Total received: €4,756

The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.

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