31st Jul 2008 07:00
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Press Release |
31 July 2008 |
VPhase plc
("VPhase" or "the Company")
Commercial launch of first energy saving product
Introduction
VPhase plc (AIM: VPHA.L), a leading developer of energy saving products for home and small commercial applications based upon voltage management, is pleased to announce that it will be launching and exhibiting its first commercial energy saving product, called VX1, at Interbuild 2008, the UK's largest building industry exhibition, in October this year.
VX1 is the result of continuing research and development undertaken at VPhase's Capenhurst site and this launch will be the Company's first commercial product from a range of energy saving devices based on the Company's growing intellectual property. The Company has already secured its supply chain for volume production and supply of this first product.
The Product
VX1 is a low-cost voltage reduction and regulation system that the Company's own testing has shown can reduce the energy consumption of many household appliances by 5%-18% whilst delivering an equivalent reduction in CO2 emissions. In the UK the nominal incoming voltage to properties is set to 230 volts; however, the actual level of voltage delivered can legally vary between 207 volts and 253 volts. Most electrical products in the UK are designed to operate at the lower level and for many appliances any excess voltage does not necessarily give additional performance; rather, the surplus energy is wasted as heat.
Under the majority of conditions VX1 automatically stabilises the voltage in homes or offices to a lower level (usually 220V for UK and EU markets). The Company's tests have shown that the fitting of a VPhase device to the consumer unit in an average UK home would result in a substantial reduction in electricity usage and a corresponding 10% reduction in electricity bills.
At the end of July 2008, a major utility and energy company announced an electricity price increase of 17 per cent. and that millions of households will pay more for their energy. Other energy suppliers are expected to follow suit, and analysts gave a warning that another round of price increases was likely in January. An average joint gas and electricity bill is expected to rise by more than £200 a year (£4 a week) to £1,211, with the electricity component increasing to £485. Since 2003, gas prices have increased cumulatively by more than 130 per cent and electricity prices by more than 94 per cent. and industry experts said that prices may be forced to rise again in January. The installation of a VPhase VX1 device could offset a significant proportion of these price increases.
Based on average domestic UK electricity usage, and a 10% reduction in electricity bills, by using the VPhase VX1 product UK consumers could see £50 per annum saving, achieving payback within approximately two to three years along with the corresponding environmental benefits. However, with increasing energy costs, and for those homes with a higher than average electricity bill, that saving could be much higher and the payback period even shorter.
Route to Market
VPhase will focus on selling this first VX1 product through multiple channels including consumer unit (fuse box) manufacturers, via partnerships with utilities, house builders and housing associations. In the UK alone approximately 1.4 million consumer units are sold annually, according to figures from the consumer unit manufacturers. Using this data, the Company estimates that the consumer unit market in EU equates to approximately 7 million units per annum.
UK uptake of energy saving products, like VPhase's VX1, is encouraged by the Government's Carbon Emissions Reduction Target (CERT) scheme. This is expected to stimulate approximately £2.8 billion of investment in carbon reduction measures, mainly via subsidies, in the period from 2008 to 2011. The Company is currently in discussions with a number of utilities to carry out independent testing of the VX1 product, with the intention of determining its suitability for the scheme.
Lee Juby, CEO of VPhase, says: "We are excited to be launching the first of a range of VPhase products to the whole construction industry, both new-build and refurbishment, at Interbuild. Consumers are currently facing significant energy price rises and, given that about 30% of the UK's carbon emissions come from the home, tackling emissions related to household energy use offers a prime opportunity for reducing the country's overall footprint.
"We are delighted to have the opportunity to launch our first product at Interbuild 2008, we see this as in ideal way of introducing the product to a wide range of house builders. Underpinned by this excellent groundwork, we look forward to making VX1 widely available throughout the UK early in 2009, followed by the rest of Europe and North America."
Interbuild will be held in Birmingham from 26 to 30 October 2008.
- Ends -
For further information:
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VPhase plc |
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Dr Lee Juby, Chief Executive Officer |
Tel: +44 (0) 151 339 8799 |
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Richard Smith, Chief Financial Officer |
+44 (0) 151 348 2116 |
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www.vphase.com |
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Novum Securities Limited |
+44 (0) 20 7562 4700 |
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Michael Brennan |
+44 (0) 20 7562 4712 |
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Henry Turcan |
+44 (0) 20 7562 4713 |
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www.novumsecurities.com |
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Zimmerman Adams |
+44 (0) 207 060 1760 |
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Graeme Thom |
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Charity Walmsley |
www.zimmint.com |
Media enquiries:
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Abchurch Communications Limited |
+44 (0) 20 7398 7700 |
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Justin Heath |
+44 (0) 20 7398 7781 |
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Monique Tsang |
+44 (0) 20 7398 7712 |
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www.abchurch-group.com |
Notes to Editors
VPhase plc is developer of a voltage control product that reduces the energy consumption of many domestic electrical appliances.
The company has developed a product designed to be attached to the consumer unit in order to control the incoming voltage for selected circuits to a target set point of 220 volts. This is slightly higher than the minimum design point for electrical items in continental Europe, thereby ensuring that electrical appliances in the home operate closer to the voltage condition for which they were designed.
Tests by VPhase have demonstrated that the product can save on average 10% of the electricity across a range of domestic products including fridges, freezers, central heating pumps, televisions and other items, even 'energy-saving' lightbulbs. This should equate to savings for the homeowner of £50 per annum, or potentially even greater as energy costs continue to increase. In addition, there is evidence that the life of electrical appliances can be extended by the use of this product; light bulbs, in particular, have demonstrated at least two times longer life when on a circuit managed by the voltage control product as compared to those without the voltage control product.
VX1 is the result of continuing research and development undertaken at VPhase's facility in Capenhurst, near Chester, northwest England.
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