GEMS compliance and enforcement update

The GEMS Energy Efficiency Compliance and Enforcement division of the Department of Climate Change, Energy, the Environment and Water has released this report to AREMA outlining the extent of 2023-2024 store inspections, check testing and enforcement.

Market Surveillance
During 2023-24, 159 physical store inspections were undertaken. Of these: 

  • 97% of GEMS household products were correctly registered and  
  • 91% correctly displayed an energy rating label (ERL), while 9% presented with an obscured or missing ERL or displayed an incorrect ERL.  
  • For Air Conditioners, there was 397 products monitored in store, with 345 being compliant with ERLs —so are an 87% compliance rate. Missing labels on displays being primary reason.
  • RC cabinets not required to have ERL on them (unless registered as a fridge)

The non-compliance recorded at the time of the inspection was resolved through engagement with stakeholders.
Online store monitoring for this period included monitoring off 77 various retailers, suppliers and third-party online shopping websites.  

  • 84% of GEMS products were correctly registered under GEMS. Industrial products returned a higher non-compliance rate.  
  • For Air Conditioners, there was 1,137 products monitored for registration with 1,036 being compliant— so 91% Compliance rate.
  • For Refrigerated Cabinets, there was 791 products monitored with 429 compliant (54% compliance). 319 Products appeared to be unregistered at time of monitoring but have been either returned to compliance or removed from supply through correspondence with the relevant suppliers and registrants.

Similarly, the non-compliance recorded at the time of inspection was resolved through engagement with stakeholders and voluntary compliance achieved. 
It’s also worth noting that online platforms have been prioritised for 2024-25.

Check testing
The 2023–24, check testing program selected 63 product models (under 10 GEMS determinations) for check testing, such as air conditioners, white goods, televisions etc. Of these models, 45 passed checking testing, 17 are pending test finalisation, and 1 has failed and opted to cancel their registration.  

  • 12 Ref/Freezers were checked, of these 9 Passes, 3 pending results
  • 7 air conditioners tested – 3 Pass, 4 pending results
  • 3 Refrigerated Cabinets tested – 1 pass – 1 pending – 1 fail

In the latter half of 2023, an open tender process was completed for check testing service which engaged 6 NATA accredited laboratories for the testing of GEMS products over the next 3-4 years.

In January 2024, the testing of refrigerated cabinets was introduced in the check testing program, with a designated NATA accredited laboratory commencing operations.

 Publications on the Energy Rating website

  • Both the Market Surveillance and Check testing results for 2023-24 are available on the energy rating website and provide more details on monitoring results and outcomes.  
  • Additionally, the 2024-25 GEMS Compliance Monitoring Program is now available on the website and outlines the annual priorities for check testing and market surveillance activities.  Our focus includes air conditioners, refrigerators, freezers and refrigerated cabinets. Air Conditioner monitoring will increase in 2025 as all of them should have new ZERL by April 2025.
  • We have also updated the Check testing policy with validity criteria, specifically adding refrigerated tolerances, which is also available on the website. 
  • We have also completed some new displaying the ERL guides and posters that can be used for training by retailers to ensure they meet their ERL obligations. 

Enforcement

  • The GEMS Regulator is focusing on monitoring products being offered under energy efficiency state incentive programs to identify non-compliance. We are working with the states to verify that products are correctly registered and labelled and remove products from the Energy Rating Registration System if they are found to be non-compliance. 
  • As a result of this monitoring the GEMS Regulator sent notices to two registrants requiring them to provide products for check testing. Following these notices the registrants applied to cancel the product registrations instead of suppling for check testing.  This included four Air Conditioners and 14 Refrigerated Cabinets.