REFRIGERATORS REPLACEMENT PROGRAM MEXICO 2009-2012

RETAILERS

MINISTERS: ENERGY; ECONOMY; ENVIRONMENT

Introduction Mabe made a project to change old refrigerators, with new ones, with a much better energy efficiency. Objective: Obtain energy consumption savings in homes and reduce the electricity monthly payments.

Federal Government reduces the amount dedicated to subsidies and the new generating plants need is deferred. The program allows to low income users to receive a “bonus” applied in the purchase of a new fridge; the old one sent to be destroyed

Benefits per 1,800,000 refrigerators replaced -Environment

Energy demand reduction and the correspondant CO2 emissions . -

Gas freon- elimination – ozone layer protection

-Oil not burned can be sold for other applications 14.012 GWh reduction means 2.100,000 ton.C02 equivalent to 240,000 new trees

-

Government policies

Savings are equivalent to Colima state consumption Energy surplus obtained by CFE could be sold to Guatemala, according with agreement already signed.

CFE deffers 250 md. investment

-Social

benefits

-Jobs creation over 1000 -Low income consumers can get a new refrigerator. -A vast majority of sales made through, medium size stores.

Legally transparent: Several government areas acting institutionally ; no specific party or person involved NAFIN / SENER pay electronically to distributors no “officers decisions” involved Polítics:

Smart investment in difficult times at the same time, helping to comply International commitments regarding ozone layer protection and with gases emissions reduction. New standards help manufacturers to find new technplogies

Win- Win program for society, government, environment and industry .

MABE WORKED WITH GOVERNMENT OFFICERS: SENER; CONUEE; FIDE, AND WITH PRIVATE INDUSTRY- ANFAD TO DEVELOP THE PLAN. GOVERNMENT WAS CONVINCED AT ALL LEVES, INCLUDING PRESIDENT CALDERON WHO LAUNCHED A PROGRAM:

ENERGY EFFICIENCY TO HELP ANTICRISIS ACTIONS SLOGAN: CAMBIA TU VIEJO POR UNO NUEVO “change your old guy for a new one”

.Goverment applied direct support of around 60 mill dl and around 90 miilion more in low interest loan to replace refrigerators and air conditioners older than 10 years by new hi-eff apparatus

RESULTS: WIN- WIN program 2009

1,800,000 actions implemented •

The projected objectives: Energy savings; Way of living improvement; new jobs in factories, and distribution chain; Reduction of CO2 emissions; Control and destruction of 140 tons+ of CFC´s; Oil burning reduced ; CFE defers investment in new generating plants, were fully achieved.

•

As an extra bonus: Recuperation of copper, aluminum, steel, plastics (120,000ton)

2016 Expectations MABE-through ANFAD- Congress lobbying succeded in a budget (similar amount than 2009) authorized to SENER. The program for this year already in place

FIDE-SENER polishing rules to initiate a new program for Refrigerators up to 18’ , without consumption restrictions, no “bonus” included, financing rules (4 years, 13% interest, etc.) are the same. MABE is prepared to attend the demand

Flujo de operación del Programa

1.-Fabricante Hace la venta normal a los distribuidores

4.-FIDE A través de su sistema, acepta o rechaza la solicitud de crédito y notifica al distribuidor.

2.-Consumidor Va a la tienda a ver la oferta de refrigeradores en la tienda confirma que califique dentro del programa.

3.-Distribuidor Realiza los trámites para iniciar el proceso de calificación envía la documentación a FIDE para que sea autorizada. 5.-Distribuidor / Consumidor Realizan la compra-venta, y el consumidor firma pagarés, que serán pagados por medio del recibo de la luz.

9.-FIDE / NAFIN: Fide solicita a NAFIN que realice la transferencia electrónica pertinente al distribuidor, por cada una de las acciones realizadas y debidamente documentadas.

8.-Distribuidor / FIDE El distribuidor presenta ante FIDE la aceptación del crédito, los pagarés, la cocumentación de recepción de la unidad nueva, la documentación de recolección de la unidad vieja y la entrega de la unidad vieja en el centro de Acopio, para proceder al cobro. 10.-CFE Emite el cobro por el servicio de luz y así mismo cobra la mensualidad correspondiente por la compra del refrigerador. Después, procede a devolver a NAFIN el monto correspondiente a cada uno de los pagarés que el Consumidor firmó

6.-Distribuidor / Consumidor El consumidor recibe el refrigerador “nuevo” y entrega al distribuidor el viejo con la documentación correspondiente. 7.-Distribuidor El distribuidor lleva el refrigerador viejo al centro de acopio para su inhablitación, con la documentación correspondiente Centro de Acopio: Inhabilita el refrigerador viejo de acuerdo a los parámetros fijados por la SEMARNAT

Glosary SENER= Energy Secretariat FIDE= trust (public and private) to save electric energy ANFAD= Association of home appliances (similar to AHAM) CFE = Main utility LyF =Utility for central country NAFIN = Development official bank