- BEE New Regulations
- Prices of ACs and refrigerators to increase by 10 percent
- From January 1, there will be an increase of 5 to 10 percent
Bitter news for home appliance buyers as the new year begins. The prices of room air conditioners (ACs) and refrigerators will increase by 5 to 10 percent from January 1. The main reason for this is the new star rating norms brought in by the Bureau of Energy Efficiency (BEE). The introduction of new BEE energy efficiency rules has forced manufacturers to use more efficient components, increasing production costs. As a result, this price hike is inevitable.
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Blue Star Managing Director B. Tyagarajan said, “Under the new norms, a 5-star AC will have 10 percent better energy efficiency, but its cost will also increase by about 10 percent.” 5-star rated ACs in 2025 will be downgraded to 4-star as per 2026 norms. Also old 4-star models will become 3-star and 3-star models will become 2-star. New 5-star models are currently capable of 6 or 7-star levels.
Leading companies like Voltas, Daikin, Blue Star, Godrej are supporting these changes. They say these regulations will reduce carbon emissions and lower electricity bills in the long run. But some companies like Godrej Appliances are expecting only 3-5 percent hike, while ACs are expecting 5-7 percent hike.
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In September, the GST on ACs was reduced from 28 percent to 18 percent, which reduced the prices by up to 10 percent. But these new BEE rules almost eliminate that advantage. In addition, the rupee’s weakness and the rise in the prices of raw materials such as copper also pushed up the prices. Star labeling has become mandatory for appliances like refrigerators, TVs, LPG gas stoves, cooling towers and chillers from January 1. It provides better options to the users. Overall, these changes will be good for the environment but will immediately put a burden on the consumer’s pocket.