Select Committee on Culture, Media and Sport Minutes of Evidence


Annex A

ENVIRONMENTAL COSTS AND BENEFITS

ENERGY CONSUMPTION

  1.  The Digital Television Action Plan assessed the impact of switchover on the UK's energy usage. This work has been informed by the Government's Market Transformation Programme (MTP), which publishes detailed projections of energy-using products, and by separate policy impact studies carried out by the DTI. The conclusion is that switchover might lead to an increase in energy use and contribute to climate change.

  2.  DCMS, DTI and Defra economists have modelled the total energy use impact of increased numbers of set-top boxes based on current usage and equipment available in today's market. They estimate that the increase in consumer energy use after completing digital switchover in 2012 is likely to be between 966 GWh and 2,816 GWh per annum, and represents a total cost (including the net carbon cost) of between £75 million and £218 million per annum. The increase is equivalent to a 0.37% increase in domestic electricity consumption.

  3.  This is partially offset by a reduction in transmitter power usage of 185 Gigawatt hours pa (digital transmission uses less power than analogue).

  4.  Most of the additional energy usage is attributable to the rapid increase in the take up of set-top boxes, particularly for second sets, which would not be otherwise converted until replaced. The assessment of energy impacts is based on equipment available in today's market, but substantial gains could be achieved:

    —  through improvements in design of set-top boxes. As transistors get smaller in highly integrated chips, they take less power. Dual function chips use less power. Standby power use can also be moderated by redesigning the way set-top boxes access on-air software upgrades (particularly the way chip sets use power);

    —  by changes to the market for digital television sets, for example the emergence of and development of a market for portable iDTVs; and

    —  through promotion of energy efficiency standards for new equipment and by encouraging equipment suppliers to adhere to the existing EU Code of Conduct on the energy efficiency of digital television services.

  5.  If improvements do materialise, then the overall impacts could be below the lower end of forecasts. Greater adherence to the EU Code of Conduct on Energy Efficiency of Digital TV Service Systems will be important in controlling this impact. If conformance to the Code were the norm, the resultant electricity savings would dramatically improve the NPV of switchover calculated through the Cost Benefit Analysis. DTI/DCMS/Defra will continue to identify and address these issues by collecting and verifying market and technical data, engaging with manufacturers, including through the Market Transformation Programme, stakeholders and other industry bodies. There will also be a full communication programme on energy use implications to consumers, manufacturers and public bodies. Where equipment is procured by the public sector, including potentially as part of the targeted assistance scheme, there will be opportunities to encourage more energy efficient products.

WASTE DISPOSAL

  6.  All electrical equipment such as televisions and VCRs would be disposed of in the natural course of events. Switchover itself does not require any equipment to be thrown away. However, the timing of switchover may affect the timing of disposal of some equipment such as rarely used televisions that people choose not to adapt. Switchover is likely to accelerate the purchase of digital adaptor boxes which will themselves fail in due course and require disposal.

  7.  DTI/DEFRA will undertake research to model any changes in patterns of waste disposal generated by switchover. DTI/DCMS will continue to work with Digital UK to ensure that consumer communications do not encourage unnecessary disposal of television equipment, and that information about correct disposal is available around switchover in each region. Action by manufacturers and retailers and better information for consumers can ensure that more equipment sold in the next few years will be ready for switchover, which will reduce disposal at switchover. We will continue to encourage manufacturers and retailers to develop and promote equipment that is switchover-compliant, has a longer effective lifespan, and corresponds to best practice on hazardous substances and recovery.

  8.  Any additional waste electrical equipment produced as a result of the switchover will be disposed of subject to the requirements of the EU Waste Electrical and Electronic Equipment (WEEE) Directive. The WEEE regulations, which implement the Directive, are due to come into force in June 2006 and make producers of electrical goods financially responsible for the collection, treatment and recycling of waste electrical and electronic equipment. As any additional equipment disposed of as a direct result of switchover will be treated and recycled according to the standards of the WEEE Directive, the environmental impact will be minimised. The Government is currently consulting on draft implementing Regulations and accompanying non-statutory Guidance with a view to transposing the Directive in early 2005. Local authorities do not have obligations under the WEEE Directive and will be able to pass any WEEE they separately collect to producers for treatment and recycling.

  9.  A more detailed assessment of direct environmental consequences of digital switchover is set out in the Regulatory and Environmental Impact Assessment.


 
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Prepared 29 March 2006