The Philippines has displayed an energy label on regulated products since 1995, originally with a distinct yellow design and descriptive product performance information. The new label under the Philippine Energy Labeling Program (PELP) allows consumers to compare product efficiency levels using a 5-star rating system.

To evaluate the consumer understanding and awareness of the new label and overall perceptions of the labeling scheme, CLASP and our local partner Innogy Solutions, Inc. conducted primary research (surveys, focus group discussions, and interviews) and desk research. We summarized the findings in the report, which includes the following key findings:

• While most consumers prioritized energy efficiency when purchasing an AC, it was more of a priority for high-income households than for low-income households.
• Consumers consider price as the most important factor when buying ACs. 60% identified high prices as a barrier to buying efficient ACs, and 70% are motivated by discounts when they purchase appliances.
• Most consumers familiar with the Philippine Energy Label agreed that the new star-rating label is more effective than the old yellow label.
• 85% of retailers believed that energy labels help them sell more efficient ACs and 89% use the labels in their promotional materials at least sometimes.

The findings informed recommendations for the Philippine Department of Energy to communicate the new label to the consumers, retailers, and industry, and in turn to continue strengthening the PELP. CLASP’s recommendations included strategies to increase the visibility of stakeholder communications, regularly rescale the label to ensure it keeps up with technological advances, and amplify consumer messaging.