The European Commission is to today unveil plans for strict new regulations governing energy efficiency that could have major repercussions for the design of IT equipment and help slash firms' electricity demands.

The comprehensive regulatory proposals cover everything from vehicle design and construction practices to the energy efficiency of electrical equipment such as computers and televisions. The EU said the regulations were aimed at enhancing its energy security by saving €100bn a year by 2020.

Under the proposals manufacturers of 14 priority products, including computers, office lighting, and air conditioning units, will have five years to meet "minimum energy performance standards" or face being banned. The standards will primarily focus on the energy products use when on stand by.

Firms will also be forced to label how energy efficient their products are in an attempt to encourage customers to opt for low energy models. The regulations are expected to have a global impact with the standards applying to all imports as well as products manufactured in the EU.

A spokesman for Defra said the UK will support the proposals. "We're fully committed to raising product standards and encouraging people to buy the most efficient products available," he said. "We support the proposals and will encourage the EU to take rapid action on them."

IT hardware giant HP also said it will broadly support the proposals. “HP understands and recognises the significant and growing importance of energy efficiency to reduce the impact of energy consumption on the environment," said Zoe McMahon, environmental strategies and sustainability manager for HP in Europe, Middle East and Africa. "HP believes that the EU Energy Efficiency Action Plan being announced today is an important step for the Community."

However, she urged the EU to continue to extend its support for the US Energy Star labelling programme for energy efficient products rather than develop an alternative standard which, she argued, could lead to confusion.

"The EU Commission has recently proposed a new five-year agreement with the US on the Energy Star programme, which will extend the five-year programme first introduced in 2001," she said. "HP is actively involved in the development of measures that will impact its technology and would like to ensure that discussions around energy efficiency labelling of products are held as discussions within this existing legislative framework. We do not see the need for additional discussions on energy labelling."

However, John Davies of analyst firm AMR Research said that overall the regulations could prove less effective than an incentive-based scheme. "We believe energy conservation works best when it's market driven rather than mandate driven," he said. "Mandates tend to drive companies to merely meet the standard whereas market-driven innovations often exceed the standards.

"It would be better if Brussels set aspirational targets rather than strict guidelines and then rewarded the innovators through some mechanisms," he added.