Final report on the consideration of hot water circulators for inclusion in the WELS Scheme
Background Research Project
Prepared by Allen Consulting Group for the Department of the Environment, Water, Heritage and the Arts
5 November 2009
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- Final report on the consideration of hot water circulators for inclusion in the WELS Scheme (PDF - 424 KB) | (RTF - 538 KB)
About the report
Hot water circulators are circulation pumps designed for use in domestic and commercial hot water circulation systems. When activated, a circulator draws cooled water out of the hot water line and back to the water heater, either through a dedicated return line or through the cold water line. By ensuring the water in the hot water line is at an optimum temperature before use, circulators reduce or may even eliminate draw off, which is the water that drains away before hot water reaches the fixture.
In June 2008, Coomes Consulting Group Pty Ltd prepared a technical report on hot water circulators as the basis for the preparation of a cost benefit analysis and regulation impact statement (if required) in 2009 on the potential inclusion of this product into the WELS Scheme.
The cost benefit analysis was undertaken by the Allen Consulting Group. It was found that whilst hot water circulators have the potential to save water, they cannot be rated for water efficiency because all hot water circulators will provide similar levels of water savings when assessed under identical ‘test’ conditions.
The Allen Consulting Group supports the conclusion made in the Coomes (2008) report that while hot water circulators can make a contribution to national water conservation, they are not a suitable product for inclusion in the WELS scheme because the notion of relative performance (of hot water circulators ) does not apply.
Under best practice regulation guidelines, government intervention can be justified when:
- there is an inherent failure in the market’s ability to deliver fair and equitable outcomes; and
- the benefits from correcting the failure are greater than the costs associated with doing so.
As neither of these criteria are sustained when considering water use and efficiency of hot water circulators, government intervention through the WELS scheme cannot be justified in this instance and hence there is no requirement for the publication of a Regulation Impact Statement on hot water circulators.
This outcome has been agreed by the Environment Protection and Heritage Council and concludes investigations into the potential inclusion of hot water circulators into the WELS Scheme.
Background
In late 2005, an independent analysis was conducted of potential products which might be suitable to include in an expanded WELS Scheme. In 2006-07 a shortlist of products was agreed by Australian, state and territory governments and the National Water Commission.
New products to be considered for WELS labelling are:
- combination washer/dryers that use water in dryer mode
- evaporative air coolers
- instantaneous gas water heaters
- hot water circulators and
- domestic irrigation controllers.
Consideration is also being given to the introduction of new minimum water efficiency standards for:
- clothes washers
- taps
- dishwashers
- combination washer/dryers
- showers
- urinals and
- other potential new products.
Raising the minimum water efficiency standards for toilets is also being considered.
Research is underway to determine the feasibility and implications of these proposals. This work includes the preparation of cost benefit analyses and regulation impact statements. Reports are being made available on this website for public comment once they are finalised.
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