Media release

Wednesday, 15 September 2010

Strict labelling requirements following LPG cabinet heater review

The Ministry of Economic Development today announced the measures it will be introducing to promote the safe use of LPG cabinet heaters, following a review into LPG cabinet heater use in New Zealand.

The review commissioned by the Ministry of Economic Development and undertaken by the New Zealand Institute of Economic Research, concluded that there are safety and health-related costs associated with LPG cabinet heater use, as well as significant economic and societal benefits associated with the safe use of these appliances, particularly as a secondary heating option.

The review confirmed there are health-related outcomes arising from the use of LPG cabinet heaters for children with asthma, and for that reason they are not recommended for use in homes with children with respiratory conditions. The report did not recommend banning LPG cabinet heater use in New Zealand.

“The review sets out a number of options for managing the risks associated with LPG cabinet heater use,” said Mark Wogan from the Ministry of Economic Development’s Energy Safety Group.

“After considering the report, the Ministry of Economic Development is looking at ways to build on the safety information already provided by the government and voluntarily by the industry, so as to strengthen the provision of information to consumers and to assist consumers to better understand the safety information that is available.”

“With up to a fifth of New Zealand homes having access to an LPG cabinet heater, the aim is to provide consumers with clear information so they can use LPG cabinet heaters safely, and avoid potential adverse health effects.”

The following measures are being implemented by the Ministry’s Energy Safety Group:
• Requiring, through regulation, that specific approval be sought for an appliance before it can be sold in New Zealand;
• mandating the provision of safety and health labelling on all LPG cabinet heaters, as a condition of their approval for sale in New Zealand;
• working with the Ministry of Health to develop mandatory health messages;
• working with the LPG Association and industry to develop mandatory safety messages;
• strengthening the provision of safety and health information through brochures and websites and through a wide range of organisations.

Energy Safety is currently working with industry and key parties so that the new measures can be implemented before next winter.

The review report is available on the Energy Safety website at www.energysafety.govt.nz/cabinet-heater-review. Cabinet heater safety messages are available www.energysafety.govt.nz/cabinet-heater-safety.

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Questions and answers

1. What did the government review?
In December 2009, the Ministry of Economic Development commissioned the New Zealand Institute of Economic Research (NZIER) to undertake an independent review of unflued LPG cabinet heater use in New Zealand. Unflued LPG cabinet heaters are portable heaters, which typically incorporate a 9kg LPG bottle and are designed to be used indoors.

2. Why did the government review unflued LPG cabinet heaters?
Concerns had been raised about the suitability of LPG cabinet heaters for use in New Zealand, particularly in residential settings. Those concerns centred on health, environmental, economic and safety risks associated with the use of these heaters.

3. Why was the review limited to unflued LPG cabinet heaters only?
Unflued LPG cabinet heaters are the most common individual type of gas appliance used in New Zealand. There are around 450,000 to 500,000 cabinet heaters in New Zealand, with over 300,000 found in about one fifth of New Zealand households. The remainder are used in commercial and industrial settings like restaurants and workshops.

Cabinet heaters are unique in that they are the only self-contained, mobile, unflued indoor gas heater that is suitable for indoor use (and as such has the potential to be used inappropriately in small unventilated areas).

4. Who was consulted as part of the review?
NZIER reviewed literature and sought input from a wide range of stakeholders including government departments, relevant industry, safety, health, environment and research organisations.
5. What did the review conclude?
The availability of LPG cabinet heaters in New Zealand appeared to have a quantifiable benefit of $15 million and a quantifiable cost in a range between $19.4 and $48.9 million in 2008. However, over 90 percent of the attributed costs associated with cabinet heaters , irrespective of the cost value chosen were attributed to the health effects to asthma sufferers, and as such measures targeting that sub-set of the New Zealand population would ensure that the benefits accrued to the wider population were maintained.

6. What are the benefits of LPG cabinet heaters?
• They are portable, provide an easily controllable source of heat, and are able to warm an area rapidly.
• They provide independence in the case of electricity outages
• The ability to prepay a volume of energy for budgeting purposes is a significant benefit to many users
• Compared to other heating options, cabinet heaters have a low purchase price. For low heating tasks they are amongst the cheapest to operate annually (although for anything more than low heating tasks or as a supplementary heating supply, fuel costs are expensive compared to other heating options).
• Finally, LPG cabinet heater use is expected to have a corresponding positive impact on greenhouse gas emissions by displacing electrical appliances likely to be powered by electricity generated from thermal energy sources.

7. What are the costs associated with the use of LPG cabinet heaters?
They pose some risk of fire and leakage. Without adequate ventilation, the gases resulting from combustion of the LPG can degrade the quality of air around the appliance, with a variety of adverse consequences to health, particularly the respiratory system. They also vent water vapour, which can stimulate mould and exacerbate asthma. These risks are minimised by the appropriate and safe use of the appliance, which is the basis of safety advisory messages. The principle cost is the health effects on children with asthma, and for that reason their use in homes with children with respiratory problems in not recommended.

8. Should LPG cabinet heaters be banned?
No, banning is a heavy intervention and not supported by the findings of the review. LPG cabinet heaters are not inherently unsafe or unhealthy if used with the recommended precautions. The vast majority of users of LPG cabinet heaters use them correctly and with the appropriate safety precautions.

9. What is the Ministry of Economic Development’s response to the findings of the review?
The following measures focus on strengthening the delivery of consumer information already provided by Energy Safety and the industry, including the provision of health-related messages for the first time:
• Specification as a “declared article”, that is requiring, through regulation, that specific approval be sought from the Ministry of Economic Development before an appliance can be sold in New Zealand. This is an administrative function provided but not currently used under the Gas (Safety and Measurement) Regulations 2010.
• Mandating the provision of safety and health labelling on all LPG cabinet heaters, as a condition of their approval for sale in New Zealand.
• Working with the Ministry of Health to develop mandatory health messages.
• Working with the LPG Association and industry to develop mandatory safety messages.
• Strengthening the provision of safety and health information through brochures and websites and through a wide range of organisations.

10. Will there be increased costs to consumers for appliances and gas?
Appliance suppliers may pass on additional compliance costs to consumers. These are not anticipated to be anything more than marginal. The new measures will not affect the cost of LPG.

11. What is the timeline for implementation of the new measures?
A timeline is being developed with stakeholders. Energy Safety is looking at the new measures in time for the winter 2011 heating season.

ENDS

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