Overview
The Water Efficiency Labelling and Standards (WELS) scheme is Australia’s urban water saving scheme. It aims to reduce demand for drinking water by setting minimum product water efficiencies and informing consumers about product water efficiency at point of sale.
The scheme provides a national approach to setting minimum water efficiencies and applying a mandatory water efficiency star rating to plumbing products and appliances. Products within scope of the scheme are dishwashers, washing machines, washer-dryers and most taps, showers, toilets, urinals and flow controllers.
The scheme currently operates under a partial cost recovery arrangement (i.e. under a decision made by a Council of Australian Governments committee in 2011), where it is funded 80 per cent from industry, 10 per cent from the Australian Government, and 10 per cent from state and territory governments.
The WELS cost recovery arrangement presents a significant risk to the effective administration of the WELS scheme as it no longer provides a sustainable funding base. Fees have remained unchanged since 2013 and were not indexed to account for price growth or evolving operational requirements.
We are seeking to make changes to how costs are recovered, including:
The cost recovery method (full or partial recovery) and the impact on the non-government and government sectors.
The timing of the application of fee increases and the use of actual or average tier values.
Reducing the discount applied to minor product registrations.
