COMMISSION STAFF WORKING DOCUMENT

IMPACT ASSESSMENT

Accompanying the document

Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

on appliances burning gaseous fuels

Disclaimer: This report commits only the Commission's services involved in its preparation and does not prejudge the final form of any decision to be taken by the Commission.

TABLE OF CONTENTS

Executive Summary Sheet 3

1............ Procedural issues and consultation of interested parties. 6

1.1......... Identification. 6

1.2......... Organisation and timing. 6

1.3......... Consultation and expertise. 6

1.4......... Scrutiny by the Commission Impact Assessment Board. 7

2............ Context 7

2.1......... Gas Appliances Directive. 7

2.2......... New Legislative Framework. 9

2.3......... Other Directives with impacts on the Gas Appliances Directive. 10

2.4......... Evaluation of the Gas Appliances Directive. 10

3............ Overview of the Appliances and Fittings Sector 13

4............ Problem definition. 14

4.1......... Alignment with the New Legislative Framework. 15

4.2......... Scope - Product coverage. 17

4.3......... Sector specific terminology and definitions. 20

4.4......... Communication of the types of gas and the corresponding supply pressures. 22

4.5......... Rational use of energy. 25

4.6......... Requirements. 27

4.7......... EU right to act 28

5............ Objectives. 31

5.1......... General policy objectives. 31

5.2......... Specific and operational policy objectives. 31

5.3......... Consistency with other policies and objectives. 31

6............ Policy options. 32

6.1......... General remark. 32

6.2......... Scope - Product coverage. 32

6.3......... Sector specific terminology and definitions. 33

6.4......... Communication of the types of gas and the corresponding supply pressures. 33

6.5......... Rational use of energy. 34

6.6......... Requirements. 34

7............ Analysis of impacts. 35

7.1......... General remark. 35

7.2......... Overview of the relevant options, their potential impacts and the methodology for their assessment 35

7.3......... Qualitative analysis. 36

7.4......... In-depth analysis. 43

7.5......... Mitigation measures. 43

8............ Comparing the options. 45

9............ Monitoring and evaluation. 47

Annex I: Summary of the results of the Public Consultation on the revision of Directive 2009/142/EC on appliances burning gaseous fuels (GAD) 50

Annex II: Certification procedures for the Gas Appliances Directive. 60

Annex III: Other Directives relevant for the GAD.. 61

Annex IV: Governance structure of the GAD.. 64

Annex V: Ex-post evaluation of Directive 2009/142/EC on appliances burning gaseous fuels (GAD) 66

Annex VI: Overview of the appliances and fittings market 73

Annex VII: Examination of accident data. 82

Annex VIII: Alignment of the GAD with the New Legislative Framework Decision No 768/2008/EC 95

Annex IX: Analysis of the interpretation needs as reflected by the existing GAD Guidance Sheets 97

Annex X: Additional information about the applied methodology. 106

Annex XI: In-depth analysis of the policy options and Competitiveness Proofing. 108

Executive Summary Sheet

Impact assessment on the revision of Directive 2009/142/EC relating to appliances burning gaseous fuels (GAD)

A. Need for action

Why? What is the problem being addressed?

All the identified deficiencies of the GAD are of minor significance. Consequently, the Impact Assessment Report deals with the identified issues in a proportionate way. The areas of improvements called “problem issues” do not involve major changes; however, in light of the experience of the functioning of the GAD, the input to the Public Consultation (2011-2012) and the outcome of the Impact Assessment Study (2012), the following issues will be addressed: - the alignment of the GAD with the New Legislative Framework (NLF) in line with the legal and political commitment taken by the institutions and as laid down in Article 2 of the NLF Decision No 768/2008/EC; - the removal of the outdated temperature limit of 105oC from the definition of the scope; - the introduction of definitions for sector specific terminology which is currently missing; - the improvement of the contents of the communication of the types of gas and the corresponding supply pressures used in Member States in order to ensure availability for manufacturers and other stakeholders of adequate data relevant for the safety and performance of gas appliances; - the clarification of the relationship between the GAD and the EU legislation on energy efficiency; and - the improvement of the readability of the Articles, Essential Requirements in Annex I and other provisions of the GAD.

What is this initiative expected to achieve?

The overall objectives of this initiative are to (1) better protect health and safety of users of gas appliances and fittings as well as to ensure the appropriate performance of these products, (2) improve the fair playing field for gas appliances sector's economic operators and (3) simplify the European regulation environment in the field of gas appliances and fittings.

What is the value added of action at the EU level?

The alignment with the NLF Decision No 768/2008/EC will ensure that harmonised solutions can be applied across the sectors subject to EU product harmonisation legislation. The improved clarity of the definition of the scope and the product specific requirements will facilitate manufacturers in determining whether the GAD applies to their products, in identifying the applicable legal requirements and understanding the product specific objectives to be achieved thus reducing the administrative burden and facilitating market access. In general, the legal clarification of the GAD will provide stability due to reduced need for interpretation hence encouraging manufacturers to invest on advanced product designs and technologies. The work of the market surveillance authorities will also be facilitated resulting in reduction of non-compliant products on the market.

B. Solutions

What legislative and non-legislative policy options have been considered? Is there a preferred choice or not? Why? Maximum 14 lines

Three alternative policy options have been considered, i.e. 1) the “do nothing” as baseline option; 2) the “soft law” option as non-legislative alternative consisting of issuing commonly agreed interpretation on the application of the GAD; and 3) as “legislative” option the amendment of the legal text. Option No. 3) is the preferred choice since only it can appropriately respond to the “problem issues” identified.

Who supports which option? Maximum 7 lines

A broad consensus exists among the Member States, European federations of manufacturers and other stakeholders that the GAD needs the above improvements. The revision of the GAD has been several times subject to discussion at the Member States Working Group Gas Appliances’ and the Notified Bodies group’s meetings which have suggested many of the modifications. Also the majority (75.6%) of the respondents to the Public Consultation (2011-2012) were of the opinion that the definitions of the current GAD are not clear enough, that additional information relating to the gas supply conditions in the Member States should be made available (77.8%) and that the formulation of certain Articles and Essential Requirements could be improved.

C. Impacts of the preferred option

What are the benefits of the preferred option (if any, otherwise main ones)?

The scope and the provisions of the GAD remain unchanged implying that the proposed modifications are likely to involve minor or no impacts. Consequently, it is impossible to derive quantitative data on any specific economic or social impacts of the policy options considered relevant. Only qualitative assessment of the relatively small impacts of the preferred option was possible. The removal of the 105oC temperature limit will clarify the scope without other specific impacts. Introduction of definitions for the sector specific terminology will facilitate implementation of the GAD and reduce slightly the administrative burden. Defining better the contents of the communication of gas supply conditions and the relationship of the GAD and the specific energy efficiency legislation will provide savings as adequate information is made available enabling designing safe, energy efficient new products. Identification of laws that need to be complied with is facilitated and potential areas of overlapping are avoided. Clarity regarding the energy efficiency legislation will facilitate developing competitive designs. Improving the readability and clarity of the Articles, Essential requirements and other provisions as well as the introduction of general design principles will have a positive impact on user safety through improved inherent safety of products.

What are the costs of the preferred option (if any, otherwise main ones)? Maximum 12 lines

Since the modification of the scope of the GAD cannot be justified, the legal framework established by the GAD will remain unchanged. As a consequence, also the economic operators and the other stakeholders affected by the GAD will remain the same as currently. In the absence of particular concrete problems that need to be addressed, the preferred option 3) is likely to involve no or minor or no costs with minimal impacts implying apart from the adaptation of the legal framework requiring a one-off effort from all parties. Reduction of administrative burden as a consequence of improved legal clarity will provide cost savings in particular in the long term however these could not be quantified. This implies that it is impossible to derive quantitative data on any specific economic or social impacts of the policy options considered relevant.

How will businesses, SMEs and micro-enterprises be affected?

No impacts specific for SMEs and micro-enterprises have been identified.

Will there be significant impacts on national budgets and administrations?

The initiative will not have significant impacts on national budgets and administrations.

Will there be other significant impacts?

The minor changes to the GAD improve the readability and clarity of it and are therefore not assumed to have any other significant impacts.

D. Follow up

When will the policy be reviewed?

No decision on the revision of the policy has been made however it is a common practise to have an evaluation carried out within 5 to 10 years after the date of application of the Regulation.

List of Acronyms

BBQs Barbecues

BED Boiler Efficiency Directive 92/42/EEC

CEN European Committee for Standardization

CIG Italian Gas Committee

CO carbon monoxide

CPD Constructions Products Directive 89/106/EEC

CPR Constructions Products Regulation No 305/2011

DVGW Deutsche Vereinigung des Gas-und Wasserfaches

EMC Electromagnetic Compatibility Directive 2004 /108/EC

EPBD Energy Performance of Buildings Directive

ER Essential Requirement

EU European Union

GAD Gas Appliances Directive 2009/142/EC

GAD-AC Gas Appliances Directive Advisory Committee

GAD ADCO GAD Administrative Cooperation group

GPSD General Product Safety Directive 2001/95/EC

HSE UK Health and Safety Executive

HVAC heating, ventilation and air conditioning

ICSMS data exchange system on market surveillance between the market surveillance bodies in Europe

IA Impact Assessment

IA Board Impact Assessment Board

IA Report Impact Assessment Report

IA Study Impact Assessment Study

IASG Impact Assessment Steering Group

JRC Joint Research Centre

LVD Low Voltage Directive 2006/95/EC

LPG Liquefied Petroleum Gas

MD Machinery Directive 2006/42/EC

NB-GA Notified Bodies Gas Appliances

NLF New Legislative Framework

OJEU Offocial Journal of the European Union

Prodcom The term comes from the French "PRODuction COMmunautaire" (Community Production) for mining, quarrying and manufacturing

PED Pressure Equipment Directive 97/23/EC

RAPEX EU rapid alert system

R&D Research and development

SG Secretary General

SMEs Small and Medium Size Enterprises

TFEU Treaty on the Functioning of the European Union

WG-GA Member States Working Group Gas Appliances

WG GAD Rev Working Group GAD Revision

1. Procedural issues and consultation of interested parties 1.1. Identification

Lead DG: DG ENTR

Other involved DGs: SG, ENER, JRC

Agenda Planning/WP Reference: 2013/ENTR/16

1.2. Organisation and timing

Work on the present Impact Assessment Report (IA Report) started in 2012 with the launch of an external study. A Impact Assessment Steering Group (IASG) was created and met 5 times: on 16 January 2012, 19 March 2012, 5 June 2012, 16 August 2012 and 15 March 2013. Representatives of SG, DG CLIMA, DG COMP, DG ENER, DG ENTR, DG EMPL, DG ENV, DG MARKT, DG MOVE, DG RTD, DG SANCO and JRC were invited. DG ENER, DG ENTR A5 and B5 participated in the meetings as well as JRC contributed the work of the IASG in writing.

1.3. Consultation and expertise

The Member States and other stakeholders, including manufacturers' federations, notified bodies and representatives of standardisation bodies, consumers' voice in standardisation and consumers/citizens, have been involved in the IA process from its beginning. The consultation included organisation of meetings with the Member States Working Group Gas Appliances (WG-GA)[1], the Working Group GAD Revision (WG GAD Rev)[2] and the Gas Appliances Directive Advisory Committee (GAD-AC)[3]. These groups contributed actively to the revision process and provided input enabling examination of the policy options.

Additionally a Public Consultation was organised between December 2011 and March 2012[4]. It collected views and opinions of relevant stakeholders and citizens on various issues that the revision of the Gas Appliances Directive 2009/142/EC (GAD) might address. The consultation was grouped in sets of questions on a) the alignment of the GAD to the New Legislative Framework (NLF); b) the clarification of its provisions; and c) the possible modification of the scope. Overall 90 responses were received, 25 from manufacturers' associations, 8 from notified bodies, 31 from enterprises (including 14 SMEs), 8 from public authorities, 7 from standardisation organisations, 2 from consumer organisations and 9 from citizens. The replies provided the Commission services with valuable input necessary to further elaborate the identified policy needs. The Commission's minimum consultation standards were fully met.

For summary of the results of the Public Consultation, see ANNEX I.

The responses to the Public Consultation were carefully examined by the external contractor undertaking the Impact Assessment Study (IA Study) launched in 12/2011 and completed in 10/2012. The results of the evaluation of the GAD will be presented below in chapter 2.4.

1.4. Scrutiny by the Commission Impact Assessment Board

The Impact Assessment Board (IA Board) of the European Commission assessed a draft version of the present Impact Assessment (IA) and issued its opinion on 15/05/2013. The Impact Assessment Board made several recommendations and, in the light of the latter, the final IA Report:

Clarifies

- the nature and extent of the observed problems in the GAD and explains how they relate to health and safety issues, an uneven playing field and complex regulatory environment;

- why alignment with the NLF is necessary and how it will be achieved; and

- why the action is required now.

Describes

- better the content of the options, in particular it explains the difference between the baseline and “soft law” options;

- what the mandatory general design principles on safety would entail; and

- outlines the specific changes that will result from aligning the GAD with the NLF.

The assessment of impacts is improved in order to provide a more balanced assessment reflecting the limited available evidence on problems. The IA Report will also be amended by an assessment of the compliance costs and impacts on SMEs and the views and concerns of stakeholders with critical views are integrated in the report.

2. Context 2.1. Gas Appliances Directive

This Impact Assessment accompanies a proposal for a revision of the Directive of the European Parliament and of the Council 2009/142/EC of 30 November 2009 relating to appliances burning gaseous fuels (GAD). The Directive permits the free movement of appliances and fittings within the EU market while ensuring a high level of protection for their users as far as risks due to gas and the rational use of energy are concerned.

The GAD covers "appliances burning gaseous fuels used for cooking, heating, hot water production, refrigeration, lighting or washing and having, where applicable, a normal water temperature not exceeding 105°C" and "forced draught burners and heating bodies to be equipped with such burners" considered also as appliances". The GAD applies also to "fittings" meaning "safety devices, controlling devices or regulating devices and sub-assemblies, other than forced draught burners and heating bodies to be equipped with such burners, separately marketed for trade use and designed to be incorporated into an appliance burning gaseous fuel or assembled to constitute such an appliance". Appliances specifically designed for use in industrial processes carried out on industrial premises are excluded from the scope.

The GAD is based on Article 114 of the Treaty on the functioning of the European Union (TFEU) and is one of the first regulatory measures to adopt the New Approach where manufacturers must ensure conformity of their products with the mandatory and essential requirements regarding safety, health and energy conservation in relation to gas appliances and their fittings. The New Approach has recently been revised and integrated into the New Legislative Framework (NLF)[5].

The essential requirements (ERs) listed in Annex I to the GAD include three categories of requirements: general conditions (e.g. on mandatory instructions, markings and warnings), requirements for materials (e.g. they must be suitable for their purpose) and design and construction requirements (e.g. concerning release of unburned gas, combustion products, surface temperatures, etc.). Technical specifications agreed by stakeholders and experts in the field, usually harmonised European standards, support the Directive in "translating" the ERs into detailed requirements for certain types of products. In practise, this means that the harmonised European standards[6], the reference numbers of which have been published in the Official Journal of the European Union (OJEU), provide a presumption of conformity with the GAD's ERs. Using harmonized standards is voluntary.

The scope of the GAD is defined by providing a list of uses (or applications) of products implying that a wide range of mainly common consumer products and products used in non-domestic environments (like on commercial premises) are covered. Fittings being safety, regulating and controlling devices are, in the end, placed on the market incorporated into finalised appliances bearing the CE marking since, prior to their incorporation, fittings are only separately placed on the market for trade use, i.e. they are traded between manufacturers.

Examples of gas appliances include: gas central heating boilers (heating boilers used for space heating, combination boilers used for both space and water heating), gas fires/heaters (fixed and portable gas fire places and space heaters), gas water heaters (appliances used to heat water for purposes other than space heating like instantaneous water heaters), gas cookers/ovens/barbecues (fixed and mobile hobs/stoves, ovens, ovens with grill and/or hob and barbecues/grills), gas refrigerators (mobile and fixed fridges powered by gas, or by gas and electricity), gas-fuelled lighting equipment (mobile and fixed lanterns), mobile appliances (mobile cookers/barbecues, patio heaters, infrared tube heaters etc. devices mainly used for outdoor leisure activities). Typical gas appliances can be seen in Figure 1.

Examples of fittings are e.g. appliance governors, multifunctional controls, solenoid and ball as well as low pressure cut-off valves, gas taps, flame supervision devices, sensors, burner control systems, thermostats and pressure sensing device.

The Directive applies to each individual appliance which is placed on the market and/or put into service in the EU for the first time. It applies equally to the placing on the market of fittings for trade use.

Figure 1: Examples of appliances

The GAD establishes in its Annex II the conformity assessment procedures (for details of the GAD conformity assessment procedures, see ANNEX II) to be followed by manufacturers before a specific appliance or fitting is placed on the market. The conformity assessment modules are always carried out by a notified body[7].

Annex III to the GAD contains the provisions on the CE marking and other inscriptions that an appliance or its data plate must bear.

Annex IV to the GAD lists the design documentation that the manufacturer must include in the application for the EC type-examination or make available for the notified body carrying out the EC unit verification. This so-called technical file shall be submitted to the competent authorities on request.

Annex V to the GAD defines the minimum conditions that the notified bodies designated by the Member States must fulfil.

Annex VI relates to the codification of the GAD and provides the references of the repealed Directives and the list of time-limits for transposition into national law and application.

Annex VII contains the correlation table between the Articles and Annexes of Directive 90/396/EEC and 2009/142/EC.

2.2. New Legislative Framework

The whole area of EU product legislation and in particular the “New Approach” has recently undergone a horizontal review that resulted in the adoption of the New Legislative Framework (NLF)[8].

The NLF consists of two instruments. Regulation (EC) No 765/2008 on accreditation and market surveillance[9] (NLF Regulation) has introduced rules on accreditation[10] and requirements for the organisation and performance of market surveillance and controls of products from third countries. It is complemented by Decision No 768/2008/EC establishing a common framework for the marketing of products[11] (NLF Decision) which is conceived as a “toolbox” for future legislation providing solutions that can work across all sectors. It contains model provisions to be commonly used in EU product legislation (e.g. definitions, obligations of economic operators, notified bodies, safeguard mechanisms, etc.).

The three EU institutions involved in the legislative process, Council, Parliament and Commission have committed themselves to use the NLF Decision’s provisions as much as possible in future legislation in order to further the utmost coherence of the regulatory framework[12]. The NLF was accompanied by an impact assessment[13].

Also the Regulation (EU) No 1025/2012 on European standardisation[14] setting the framework for using harmonised standards in Union harmonisation legislation has become part of the NLF.

2.3. Other Directives with impacts on the Gas Appliances Directive

Besides the GAD there are a number of other Directives that are relevant to gas appliances. In particular the following Directives may have impacts on gas appliances, their internal components and fittings:

- Ecodesign Directive 2009/125/EC and its implementing measures apply to certain gas appliances.

- Energy Performance of Buildings Directive 2002/91/EC (EPBD)

- Construction Products Directive 1989/106/EEC (CPD) and Construction Products Regulation 305/2011/EU (CPR)

- Low Voltage Directive 2006/95/EC (LVD)

- Electromagnetic Compatibility Directive 2004/108/EC (EMC)

- Pressure Equipment Directive 97/23/EC (PED)

- General Product Safety Directive 2001/95/EC (GPSD)

More information about these Directives is provided in ANNEX III.

2.4. Evaluation of the Gas Appliances Directive

The Directive has been in place since 1990 with the first date of application on 1 January 1992. Although the GAD has been functioning well, the experience with its implementation and the technical progress and innovation made necessary to examine whether certain provisions of it would need to be reviewed. A regular feedback on its functioning is mainly received through the governmental experts of the Member States responsible for the implementation of the GAD and relevant stakeholders who meet in the WG-GA (for the details of the GAD governance structure, see ANNEX IV).

Ex-post evaluation

The GAD was subject to an Ex-post Evaluation Study[15] carried out in 2010-2011. The primary focus was to assess the direct impacts of the GAD in terms of its main objectives of ensuring free movement of products and protecting against risks to safety and health. More concretely, the study assessed the effectiveness of the GAD, its impacts on companies and users in the European Union, trade barriers that limit the free movement of goods, innovation, and whether the provisions of the GAD appropriately guarantee that gas appliances and fittings placed on the market and put into service are designed and constructed in such a way that they operate safely and present no dangers.

Although the ex-post evaluation concluded that the Directive was functioning well and contributed to the improvement of safety of gas appliances, it also highlighted usefully some areas where improvement would be desired. The areas of concerns were the following:

- The considerable variations in the extent of market surveillance between Member States;

- The differences in the controls over the quality of notified bodies and the fact that fact that some notified bodies do not attend EU level co-ordination meetings thus not benefitting from exchange of experience;

- The continuing trend of mixing different gases requiring gas appliance manufacturers to accept a wider range of gas quality. Harmonised requirements for the format and content of this information could help manufacturers to address this issue;

- The differences in the national installation requirements and qualification requirements for gas installers;

- The leading cause of fatalities associated with gas appliances relate to carbon monoxide (CO) poisoning;

- The costs of the GAD are relatively higher for SMEs implying that SMEs are more sensitive to any changes of the legal framework; and

- The fact that the GAD does not cover all products presenting gas risks.

The overall conclusion of the data collection, the consultation of sector’s stakeholders and the executed analysis was that the Directive had been implemented successfully in all Member States and has been functioning well. It could be concluded that the Directive had been efficient and had been effective in meeting its objectives.

The compliance costs caused by the change from the pre-GAD national legal frameworks to the harmonised EU-wide GAD framework more than 20 years ago might have been significant for one-off or short run products which were assumed to more likely be manufactured by smaller companies. This could indicate potentially adverse effect on SMEs due to higher unit costs, if the scope was changed.

The number of gas appliance related accidents had been declining, the trend had been away from fatal incidents and the number of incidents resulting in injuries has also dropped. A general consensus that the GAD had improved the safety of gas appliances exists. This is demonstrated also by the very low number (at most 15 per year) of gas appliances notified annually under RAPEX and ICSMS systems compared to the millions of gas appliances sold each year.

More detailed information on the ex-post evaluation can be found in ANNEX V.

Impact assessment study

The present report builds on IA Study[16] on the review of the GAD which examined the impacts of (1) the alignment of the GAD with the New Legislative Framework (NLF); (2) the clarification of its provisions; and (3) a possible modification of the scope.

Methodology

A review of available data as well as consultation with relevant stakeholders was undertaken to identify any safety risks or market failures (i.e. barriers to trade) that have arisen in relation to products currently included in the scope of the GAD and those which are not covered by it. Efforts were made to obtain the most relevant and accurate data. The starting points for the assessment were the findings and conclusions of the above ex-post evaluation of the GAD.

Furthermore, an additional consultation was undertaken by sending a questionnaire to over 130 named persons in relevant organisations. 34 responses were received with several follow-up interviews. The responses to these interviews and the Public Consultation (2011-2012) were critically analysed and reviewed with particular regard to assisting with the identification of potential problems and issues which would benefit from revisions to the GAD. In particular, stakeholders that had proposed taking new product groups within the scope of the GAD were further consulted in order to accurately determine the underlying problems and their drivers and to enable formulation of respective policy options.

The work was executed in conformity with the general approach set out in the Commission’s Impact Assessment Guidelines[17]. The methodological framework underling the analysis is a cost-benefit analysis, with the aim being to determine whether the proposed revisions under the policy options would deliver net benefits. Where quantifying a particular impact was not possible, qualitative information was combined with quantitative data to provide an overarching assessment of whether an option delivers net benefits.

Outcome of the study

Regarding the potential problems other than those dealt with by the NLF, it was necessary to carefully investigate a number of issues raised by Member States, manufacturers and other stakeholders implying that the GAD was not included in the alignment package of the 9 Directives currently subject to inter-institutional discussions. After the IA Study had been carried out, it appeared that there is no need to extend the scope of the GAD. Consequently, no major change is necessary but the issues to be dealt with concern clarification of the existing legal provisions.

The results of the IA Study are presented in more detail below in section 4.

A detailed analysis of the governance structure of the GAD, the results of the ex-post evaluation of Directive 2009/142/EC on appliances burning gaseous fuels (GAD), an overview of the appliances and fittings market, examination of accident data, summary of the elements relevant for the alignment of the GAD with the NLF, analysis of the interpretation needs as reflected by the current GAD Guidance Sheets, additional information about the applied methodology and an in-depth analysis of the policy options and competitiveness proofing are presented in Appendices.

3. Overview of the Appliances and Fittings Sector

The sales and stock of gas appliances are linked to the consumption of mains gas and Liquefied Petroleum Gas (LPG). For fixed appliances it has been therefore useful to consider the number of households connected to mains gas and the consumption of LPG. For mobile appliances, the consumption of LPG is the key indicator. However, only very limited data were available on the number of homes and businesses using LPG. Due to the fact that Eurostat statistics does not differentiate between appliances that are fixed and mobile, the data presented for fixed space and water heaters and cooking appliances already includes mobile appliances.

The IA Study (2012) provided an estimate on the current EU stock of gas appliances is being at least 470 million. Annual sales of gas appliances are at least 30 million units and are sold and (in most cases) installed at a total cost of around €40 billion. When installation costs are excluded, the annual value is around €23 billion.

For fittings, no EU wide information on stock, lifespan, consumption, or costs is available. However, according to the Competitiveness Study (2009)[18], the turnover in the fittings (safety, controlling and regulating devices other than gas appliances) sector was around €1.7 billion. It must be noted that fittings are an independent sub-group of GAD covered products which are traded between manufacturers; the annual sales value of gas appliances provided above is not directly linked to the sales of fittings.

Currently, the markets for most types of gas appliances are considered to be mature, with numerous competitors and established market positions amongst the major manufacturing companies. For some product categories, they have largely become replacement markets (such as the boiler market in Germany, Belgium and the Netherlands). However, there may be scope for market growth in those Member States where access to mains gas is set to increase in the future.

The data collected on the markets for the main product categories (see 2.1.) of gas appliances are summarised in Table 1. Due to lack of disaggregated data, mobile and fixed appliances are considered together. The table does not provide data on products that are currently outside the scope of the GAD.

Table 1: Summary of the appliances and fittings market for the main product categories (2010)

Product category || Stock (million) || Lifespan (years) || Sales (million) || Purchase Cost (€) || Install. cost (€) (1) || Value ( €billion)

appliances || || || || || ||

Gas boilers || 100 || 23 || 7.8 || 1,700 || 1,600 || 26

Gas fires/ space heaters || 551,4 || 30 || 4.8 1,2,4 || 240 3 450 1 || 270 || 3.5 1,4

Gas water heaters || 361,4 || 17 || 2 1,4 || 390, 7301,5 || 250, 450 1,5 || 1.4 1,4

Gas cookers/ ovens/BBQ || 280 || 19 || 15 || 268 - 2,000 || 30 - 400 || 5.6

Gas refrigerators || - || - || - || 200 - 1,800 || || Unknown

Gas lighting || 0.07 (street lights) || - || Millions || 10-75 3 || - || 0.26

fittings || || || || || ||

Associated fittings6 || - || - || - || - || - || 1.7

Notes: 1) Household use only, 2) Fixed appliances only, 3) Mobile appliances only, 4) Likely to be an underestimate, 5) Instantaneous heaters/storage heaters., 6) Fittings separately marketed for trade use

Source: Impact Assessment Study (2012)

More detailed information on the appliances and fittings market can be found in ANNEX VI.

4. Problem definition

Despite successful functioning of the GAD, there is a broad consensus that it needs some improvements. For instance, the majority of the respondents (75.6%) to the Public Consultation (2011-2012) did not consider the definition of the scope in the current GAD clear enabling determination of products falling within the scope. Furthermore, 77.8% of the respondents were of the opinion that additional information relating to the gas supply conditions in the Member States should be made available. Most of the respondents (77.8%) were not in favour to deal with energy efficiency in a more concrete way in the framework of the GAD but to refer to the more specific EU harmonisation legislation regarding this aspect. In general, the improvement of the formulation of certain Articles and Essential Requirements as well as providing definitions for the terminology used was supported by the majority of the respondents to the Public Consultation (for more details see ANNEX I).

The elements of the policy options have also been subject to very detailed and long discussions in several meetings of the WG-GA, WG GAD Rev and GAD-AC. The Public Consultation (2011-2012) made it possible also for parties not represented in these groups (e.g. citizens, SMEs, manufacturers of gas products not covered by the current GAD, etc.) to contribute to the revision process. In the framework of the IA Study, further consultations of the sector’s experts and other contributing parties were executed in order to obtain additional information about the underlying problems behind the proposals and views expressed, and the causes of the problems.

Consequently, all the parties potentially concerned were widely consulted on the proposed policy options.

Lots of efforts were yet put into attempts to identify the assumed safety related problems and/or those caused by internal market barriers. Consequently, regarding a possible widening of the scope the Public Consultation (2011-2012) questions asked the respondents, among other things, to indicate which products and/or product groups are subject to obstacles to intra-EU trade or which present unresolved gas risks, to describe what the concrete problems that have been experienced are and to indicate in or between which Member States these problems have appeared. The responses were subject to extremely careful analysis. Parallel to this examination, data, accident statistics and potentially relevant information from other sources (other studies, Impact Assessments, etc.) was collected and examined.

After the IA Study had been carried out, it appeared that the extension of the scope cannot be justified as real problems in terms of health and safety of EU citizens, uneven level playing field or complex regulatory environment which would be classified as “problems” in the meaning of the Commission’s Impact Assessment Guidelines were not identified implying that no major change is necessary. The identified issues to be dealt with concern clarification and simplification of the existing legal provisions, and alignment.

Nevertheless, it is the time to go ahead with the alignment of the GAD as the alignment of the sectorial Directives with the NLF is a legal and political commitment taken by the institutions. As this requires amendment of the legal text of the GAD, the opportunity is used to address those GAD specific aspects deemed to be justified.

The above areas of improvements do not involve major changes; however, in light of the experience of the functioning of the Directive, the input to the Public Consultation and the outcome of the IA Study (2012), the following areas of issues were carefully examined:

- the alignment with the New Legislative Framework (NLF);

- the scope, i.e. the product coverage;

- the sector specific terminology used and definitions;

- the communication of the types of gas and the corresponding supply pressures used on the territories of the Member States;

- the concept of rational use of energy, and

- the requirements (Articles, Essential Requirements in Annex I, other Annexes).

Taking the results of the IA Study into account and noting that the scope and the provisions of the GAD remain nearly unchanged, it can be concluded that the proposal does not have significant economic, social or environmental impacts except those minor impacts of proposed clarifications which will yet highly facilitate the application of the GAD by the economic operators through improved legal clarity and certainty. Consequently, it is impossible to derive quantitative data on any specific impacts; however the expected marginal benefits have been dealt with in a proportionate way carrying out a qualitative assessment (see section 7.3. and Annex XI). This IA Report refers to the clarification issues as “problem issues” in order to stress that no real problems were identified.

For the problem issue tree see Figure 2 at the end of section 4.

4.1. Alignment with the New Legislative Framework

One of the reasons the reasons for adopting the NLF was a finding that in some sectors a significant number of non-compliant products not fulfilling the requirements set out in the corresponding Directives were being placed on the market. Some actors were simply affixing the CE marking to their products, even though these products did not fulfil the conditions for being CE marked.

Neither the Ex-post Evaluation Study (2011) nor the IA Study (2012) could identify evidence on this behaviour being a problem in the gas appliances sector. It also it appeared that market surveillance is able to identify products that do not comply with the requirements of the GAD as well as gas safety risks presented by products currently outside its scope (for more detailed information about the analysis of the accident data, see ANNEX VII). These non-compliant products are subject to restrictive measures like sales ban and withdrawal from the market including recalls from consumers showing that the safety risks are under control[19].

However, many of the general problems identified by the NLF have also been observed in the context of implementing the GAD.

In its reports to the WG-GA the notified bodies’ group GAD-AC and several European federations have pointed out that there are differences between the notified bodies in terms of the equipment they have at their disposal, with regard to their expertise, their prices and in their practices to sub-contract testing, The notified bodies group has also deplored the fact that many notified bodies do not participate in the co-ordination meetings aiming to bridge the gap in knowledge that exists across all notified bodies and may not apply the GAD Guidance Sheets[20]. Furthermore the group frequently pointed out different practices in the Member States as regards the evaluation and monitoring of notified bodies.

A number of appliance and fittings manufacturers are also faced with the problem of the legal framework being complex and sometimes being experienced inconsistent as frequently appliances and fittings have to comply also with other Directives[21].

The alignment of the GAD with the NLF will be in line with the political and legal commitment laid down in Article 2 of the NLF Decision12 to use the solutions offered by the Decision as consistently as possible in order to address the overall problems by removing the inconsistencies in the sectorial legislation to enable the economic operators and authorities to correctly interpret and apply that legislation.

Concretely, the alignment of the GAD intends to align it to the “goods package” adopted in 2008 and in particular to Decision No 768/2008/EC establishing a common framework for the marketing of products. It will include introduction of the relevant horizontal definitions, traceability requirements, obligations of economic operators, criteria and procedures for the selection of conformity assessment bodies (notified bodies) and conformity assessment requirements in the GAD legal text. The alignment will not include introduction of new elements going beyond a pure alignment of the current GAD. More detailed information on the alignment of the GAD with the NLF Decision and its impacts can be found in ANNEX VIII.

The changes and their impacts resulting from aligning with the NLF are expected to be the same as for the nine product harmonisation Directives included in the Alignment Package. The Impact Assessment Report on this Alignment Package[22] has already examined in depth the different options to give effect to the NLF Decision in case of EU product harmonisation which are exactly the same for the GAD. The report also provided an analysis of the impacts resulting from the measures set out by the NLF Decision. For this reason this IA Report will not examine these aspects. It will focus on GAD specific problems and issues as well as the ways to address them.

Equally, the Impact Assessment Report on the Regulation (EU) No 1025/2012[23] of European Standardisation examined the impacts of this Regulation. Therefore these aspects are not dealt with in this report.

4.2. Scope - Product coverage 4.2.1. Problem that requires action and its underlying drivers

The technical progress and innovation made it necessary to examine whether a modification of the scope of the GAD was required, in particular in order to conclude if any new product groups should be brought within the scope of the GAD. One of the main arguments used to motivate the possible extension of the scope was that the scope of the GAD excludes certain products that may present gas risks as currently only products for the uses[24] listed in the definition of the scope are covered. For instance, tools or appliances used for heating of materials are not covered unless specifically mentioned (e.g. hot water production).

As a strong consensus to widen the scope has existed among the majority of the Member States and main stakeholders, an in-depth analysis of all available data and the changes proposed by the Member States and the other stakeholders was undertaken. Both the Public Consultation (2011–2012) and IA Study (2012) gave a lot of emphasis on the identification of the real problems and their causes. In particular, the Member States and the stakeholders that had proposed taking new product groups within the scope of the GAD were further consulted in order to accurately determine the underlying problems and their drivers in order to enable formulation of respective policy options. They were asked to indicate which products and/or product groups are subject to any kind of obstacles to intra-EU trade or which present unresolved gas risks, to describe what the concrete problems that have been experienced are, and to indicate in or between which Member States these problems have appeared.

However, none of the consulted parties was able to identify more than a few issues relating to e.g. national variations in installation requirements, national requirements for installers, building codes, etc. These issues go beyond the scope of the free movement of goods and fall under the competence of the Member States; therefore they are not relevant for the objective of the GAD which is to ensure the free movement of products covered by its scope.

The above thorough analysis undertaken in the framework of the IA Study (2012) demonstrated that no concrete evidence was available justifying expanding the scope to cover new products for safety reasons (no concrete identified gas safety risks that need to or could be addressed in the revision). Neither regarding the functioning of the internal market any specific problems associated with barriers to trade with products that currently lay outside the scope of the GAD could be identified.

Regarding the anticipated evolution of the markets due to innovative products based on new designs or technologies no product groups (not yet covered by the GAD) representing a technology to be taken within the scope of the GAD was identified. Indeed, the scope of the GAD is defined by providing a list of uses of products but not by listing technologies covered therefore the scope being technology neutral and allowing any innovative technology benefitting from the GAD legal framework[25] as far as it is used to one of the applications referred to in the definition of the scope.

Appliances specifically designed for use in industrial processes carried out on industrial premises are excluded from the GAD. Whether or not this exclusion creates a gap in ensuring the safety of gas appliances being placed on the EU market was separately verified in the IA Study (2012). It appeared that a range of other EU harmonisation legislation[26] already applies to the excluded products. In addition, there are a series of end-user Directives that concern employers[27].

In general, it must be noted that many gas-related products lying outside the current scope of the GAD are covered by other Directives like the Machinery Directive, Pressure Equipment Directive, Construction Products Directive, etc. These sectors have not reported about any gas safety problems.

Extensive examination of accident data did neither reveal any such safety problems with gas appliances covered by the GAD or those outside its scope which could be addressed by revising the GAD. The overall number of accidents involving gas appliances appears low. Of those accidents that do occur, asphyxia and CO poisoning represent a threat to safety. As a broad indication, it is estimated that there are about 200 fatalities and 2,000 injuries associated with (non-industrial) gas-related products across the EU-27 per year – of which, 75% are estimated to be associated with CO poisoning. However, there continue to be accidents involving gas appliances, but the majority of these are associated with installation failures and lack of maintenance rather than safety issues with the appliances..

More detailed information on the examination of the accident data can be found in ANNEX VII.

Thus, on the basis of the absence of any evidence, of problems in the single market or of safety issues there is no justification for bringing new products under the scope of the GAD, i.e. there are no concrete identified problems that need to be addressed.

The remaining aspect requiring clarification is the exclusion of appliances with a normal water temperature that exceeds 105oC. The exclusion was originally introduced since the hazards due to pressure for these products were subject to national legislation in most of the Member States at the time the GAD was adopted. Currently, the hazards due to pressure are under EU harmonisation legislation (Pressure Equipment Directive 97/23/EC) implying that no risk to conflict with national legislation exists thus the exclusion is not considered to serve any more a useful purpose. Consequently, the only identified problem issue with the current product coverage is the outdated exclusion of appliances with a normal water temperature that exceeds 105oC, however it cannot be considered as a real regulatory failure.

4.2.2. Who is affected, in what ways and to what extent?

As no particular safety problems or failures in the functioning of the internal market have been identified, the affected parties remain those concerned by the current GAD. The removal of the 105°C normal water temperature limit is considered as clarification of the GAD scope affects the users of the specific GAD Guidance Sheet A1 relating to ‘Appliances and its fittings covered by the Directive’. This GAD Guidance Sheet clarifies the confusion with regard to appliances whose water temperature exceeds 105°C for only a short time.

The affected parties are the manufacturers of gas appliances with a normal water temperature close to the 105oC limit as exceeding it might result in the GAD not applying to the products concerned. Furthermore, the notified bodies, the Member State authorities and the European Organisation for Standardization (CEN) need to consider the current exclusion in carrying out their tasks. The end-users of gas appliances might be affected due to diverging approaches adopted by the manufacturers and test houses due to the fact that in borderline interpretation of whether the GAD should be applied can vary.

However, it was not possible to identify products on the market potentially concerned (e.g. espresso coffee machines designed to operate above the 105°C normal water temperature limit) suggesting that no market for such products exists. If markets exist, the number of products concerned is extremely low. Consequently, no or only few manufacturers would be affected by the amendment.

4.2.3. Evolution of the problem

As the source of the clarification need stems from the legislation itself, it will persist. Unless the definition of the scope is amended, the situation for manufacturers, notified bodies and Member State authorities will not change either. Since the introduction of the Pressure Equipment Directive, no risk to conflict with national legislation exists any more. The GAD Guidance Sheet A1 is currently used to clarify the application of the 105°C normal water temperature limit.

4.3. Sector specific terminology and definitions 4.3.1. Problem that requires action and its underlying drivers

The current wording of the definition of the scope is not precise and has led to the need for interpretation as no definitions for the terms used to define the scope are provided.

The scope of the GAD is defined by providing a list of uses of products implying that it must be assessed on case by case basis whether a design is to be considered as an “appliance burning gaseous fuels used for cooking, heating, hot water production, refrigeration, lighting or washing and having, where applicable, a normal water temperature not exceeding 105oC". Similar assessment is required to judge whether the exclusion of "appliances specifically designed for use in industrial processes carried out on industrial premises" applies to a specific product.

Since no definitions for the terms like “burning”, “cooking“, “heating“, “hot water production“, “refrigeration“, “lighting“, “washing”, “specifically designed“, “industrial processes“, “industrial premises“, etc. are provided, the definition of the scope is not as clear as it could be. As a result, it has been necessary to elaborate several GAD Guidance Sheets to clarify the scope20: currently 5 GAD guidance Sheets deal purely with the interpretation of the scope. Some of the terms used in the Essential Requirements are not entirely clear, e.g. adequate definitions for the terms “combustion” and “combustion products” would facilitate the application of the Essential Requirements. Also the current definition of fittings[28] refers to "sub-assemblies" in a way, which does not clearly indicate the intention to cover only safety, controlling or regulating devices and combinations thereof.

In order to provide a means to verify the compatibility of appliances with the gas supply conditions, the GAD requires, amongst others, that the "appliance category"[29] marking must be given either on the appliance or its data plate. In order to enable defining the meaning of the "appliance category" marking, also the terms "gas family" and "gas group" would need to be defined. These two terms would need to be introduced in the GAD.

In order to take into account the developments in the field of EU energy efficiency legislation, the current terminology used in the GAD referring to "energy conservation"[30] and "rational use of energy"[31] must also be reviewed. This matter is dealt with separately in chapter 4.5.

More detailed information on the interpretation needs as reflected by the existing GAD Guidance Sheets can be found in ANNEX IX.

The above highlights the need to clarify the terminology used in the current Directive, so as to facilitate its implementation and to ensure that all actors understand their obligations and that there is a level playing field across all of the markets covered by the GAD.

The described problem is a shortcoming of the current legal text due to the absence of the definitions for the terminology used. These definitions can be introduced in the GAD only by amending the legal text implying that the absence of these definitions can be considered as a problem issue.

4.3.2. Who is affected, in what ways and to what extent?

The manufacturers of gas appliances and fittings, the notified bodies, the Member State authorities and the CEN who need to know which products are covered by the GAD and which remain outside its scope are affected. The lack of definitions for the technical terminology used has resulted in need for interpretation of the meaning of the terms and concepts referred to in the GAD.

The interpretation of the terminology used in the GAD provided in the GAD Guidance Sheets has ensured that the problems with the legal ambiguity have remained small. Despite of issuing GAD Guidance Sheets some grey areas[32] creating legal uncertainty remain.

The need for interpretation indicates that the sector’s stakeholders must frequently return to unclear matters in order to agree on common approaches regarding the scope and certain other provisions of the GAD. No long-term legal certainty can be achieved as long as the terms used in the legal text can be subject to interpretation.

4.3.3. Evolution of the problem

The problem with the missing definitions for the sector specific terminology has been a fact as from the time of adoption of the GAD[33]. Interpretation in the form of GAD Guidance Sheets has been adopted over the years the GAD has been applicable, as necessary, enabling keeping the problem under control.

Since the introduction of the GAD in 1990 there has been considerable innovation in the development of gas appliances for use in a domestic setting. This includes a range of new commercial applications, such as co-generation appliances utilising fuel cell technology. For instance, it can be argued that fuel cell products do not "burn" gaseous fuel. Therefore it is becoming more and more important to be able to precisely define the scope of the GAD in terms of precise uses of products covered.

In recent years, the increasingly common practise of gas appliance manufacturers has been to place on the market complete heating units (appliances with integral combustion products evacuation and/or air inlet ducts). This has resulted in an increasing number of requests of how the ducts should be legally treated, on one hand, when they are parts of gas appliances and, on the other hand, if placed on the market separately as independent products. The confusion as experienced by some stakeholders is due to the fact that the GAD does not provide a precise definition of where a gas appliance starts and where it ends. Furthermore, confusion is also caused by the lack of awareness of the manufacturers and other stakeholders about the functioning of the EU harmonisation regarding e.g. the simultaneous application of EU harmonisation legislation.

4.4. Communication of the types of gas and the corresponding supply pressures 4.4.1. Problem that requires action and its underlying drivers

The types of gas and corresponding supply pressures are not subject to harmonisation in the framework of the GAD[34]. Since the manufacturer of an appliance needs information on the type of gas and supply pressure in order to design safe and energy efficient appliances, Article 2(2)[35] of the GAD requires that the Member States must communicate the types of gas and corresponding supply pressures used on their territories and any changes in their gas supply conditions to other Member States and the European Commission. Subsequently, this information is published in the Official Journal of the European Union (OJEU)[36].

Despite the obligation to communicate is included in the GAD, the contents of these communications has not been defined. The established practise is to communicate the gas families and groups, the gross Wobbe indices of these gases and the minimum/nominal/maximum supply pressures of gaseous fuels. No GAD Guidance Sheet has been prepared in order to define more precisely the contents of the communications.

Most of the respondents 77.8% of the respondents to the Public Consultation (2011-2012) indicated that the current information available on the gas supply conditions is not sufficient and there is a need to better determine the parameters which should be communicated by the Member States in order to ensure the adequacy and comparability of this information. The majority of stakeholders are also of the opinion that a continuous recording of the information should be mandatory as the information published in the OJEU was often obsolete and inaccurate.

It is also clear that the gas supply conditions in the EU are developing fast, amongst others, due to the general objective to increase the proportion of energies from renewable sources. As a result, more and more gases from non-conventional sources[37] will be supplied both through isolated local networks and by injecting them into natural gas grids.

Despite the attempts to achieve a higher degree of harmonisation of gas qualities across Europe[38], it is obvious that the gradual depletion of the sources of gas extracted from some gas fields and their replacement with biogas will lead to an increasing diversity of gas qualities.

As the types of gas and their supply pressures are not subject to harmonisation in the framework of the GAD, the gas quality issue cannot be addressed in this proposal. However, it is important to ensure that the manufacturers have adequate information about the types of gas and supply pressures available as gas appliances are very sensitive to the composition of the fuel: inadequate or missing pieces of information during the design phase would lead to unsafe and/or not correctly performing (e.g. significantly reduced energy efficiency level) appliances being placed on the market. Consequently, the non-harmonisation and lack of minimum requirements for the communication of gas supply conditions has become an issue requiring urgently action in order to enable the manufactures to ensure also in the future the compatibility of appliances and fittings with the gas supply conditions.

The availability of adequate information is also the prequisite for the determination of the "appliance categories"29 in 437:2003+A1:2009 and in product specific European standards. Since the "appliance category" marking is a legally required marking[39], the conditions for applying this making must be guaranteed.

The described problem issue is not purely a regulatory failure because the obligation to communication the types of gas and corresponding supply pressures used on the territories of the Member States is already included in Article 2(2) of the GAD implying that the Member States already have the necessary mechanisms in place (since the adoption of the GAD in 1990). However, the problem issue is caused by the fact that legal text does neither define the parameters to be communicated nor provides any harmonised form for the communication.

4.4.2. Who is affected, in what ways and to what extent?

The manufacturers of gas appliances and fittings, the notified bodies, the Member State authorities and the CEN who should have (but do not have) available adequate information on the types of gas and corresponding supply pressures used in the Member States are affected by the problem.

The absence of appropriate data on the gas supply conditions may result in immediate safety problems due to non-availability of safety and performance relevant data that is necessary during the design phase of products. Gas appliance designs not achieving correct performance levels will have also other negative impacts due to emissions of substances harmful to health and environment as a consequence of performance failures. The performance of appliances may also change in long term, if the gas supplied contains impurities which were not communicated prior to the design phase. Furthermore, the long-term effects that impurities in gaseous fuels may have on the safety and performance of appliances cannot be detected by installers and commissioning inspectors as the potential risks may appear only after appliances have been in service for a long time. Consequently, the safety of users might be negatively affected by the absence of adequate information on the gas types supplied. In worst case the malfunctioning of appliances occurs immediately after its putting into service implying that also the safety of gas installers and constructions workers could be endangered if the problem is not dealt with.

Furthermore, the absence of a harmonised means to verify the compatibility of appliances both with the legal requirements and the actual gas supply conditions is expected to lead to barriers to trade since it is evident that diverging interpretations would be adopted across Europe as new gaseous fuels from non-conventional sources are introduced.

4.4.3. Evolution of the problem

At the time when the GAD was adopted gaseous fuels distributed through gas grids were conventional fossil gases (often called "natural gas"[40]) or in local systems "town gas"[41]. Additionally, liquefied petroleum gas (LPG)[42] was supplied by tanks, cylinders and cartridges.

The gas supply conditions in the Member States are evolving fast, amongst others, due to the general objective of EU to increase the proportion of energies from renewable sources. As a result, more and more gases from non-conventional sources will be supplied both via isolated local networks and by injecting them into the natural gas grids. Consequently, it is foreseen that the proportion of gaseous fuels form renewable sources, i.e. biogases, will increase in the future. Side by side with this development also the legal framework evolves. In particular, the Renewable Energy Directive (RED) 2009/28/EC[43] establishes a common framework for the use of energy from renewable sources in order to limit greenhouse gas emissions and to promote cleaner transport. To this end, the Member States are to establish national action plans which set the share of energy from renewable sources consumed, amongst others, in heating, for 2020.

In this context DG ENER has mandated also the CEN by mandate M/475 to develop standards for bio-methane for use in transport and injection in natural gas pipelines. This work includes also determining specifications (parameters and values) for bio-methane. Another relevant DG ENER mandate is M/400 to CEN in the field of gas qualities. The purpose of this mandate is to invite CEN to draw up standards for gas quality parameters for natural gas, that are the broadest possible within reasonable costs.

As the developments aiming to increase the use of gases from renewable sources (biogas) is relatively recent, so far no systematic concrete evidence about problems due to foreseen changes in qualities of gaseous fuels is available[44].

However, it is utmost important to react to the foreseen changes in gas qualities in a proactive way since the manufacturers must have adequate information about the types of gas and supply pressures available in order to be able to design safe and correctly performing appliances. The manufacturers, notified bodies and market surveillance authorities must also be in a position to determine which Directives apply simultaneously to a specific design.

As noted above, stakeholders have indicated that the information currently published in the OJEU is very difficult to compare because they are provided by the Member States in a non-harmonised way. Manufacturers do neither have always sufficient information regarding the gas supply conditions in different regions of the Member States limiting the possibilities to market their products as widely as they would like to.

The problem clearly continues to evolve. The pressure to increase the use of gases from alternative sources will further accelerate the process resulting greater gas quality variations across the EU.

4.5. Rational use of energy 4.5.1. Problem that requires action and its underlying drivers

The GAD Essential Requirement 3.5. stipulates that "appliances must be so constructed as to ensure the rational use of energy, reflecting the state of the art and taking into account safety aspects". This wording, which is very general, may lead to different interpretations[45]. Certain appliances may be also covered by more specific European regulations on energy efficiency, implying that they shall satisfy these requirements instead of the Essential Requirement 3.5.

To achieve a reduction in its annual consumption of primary energy, the EU has set minimum energy efficiency standards that seek to reduce energy consumption and increase energy efficiency under the Ecodesign Directive 2009/125/EC[46]. It is wide in scope and is applicable also to products which do not necessarily use energy themselves but have significant impact on energy consumption and can therefore contribute to saving energy. It does not in itself create any requirements, but establishes the means to introduce implementing measures which in turn contain detailed provisions.

Since the implementing measures[47] under the Ecodesign Directive should be considered as more specific legislation in relation to the GAD, they will apply in preference to the GAD Essential Requirement 3.5. as soon as they become applicable to the product groups concerned.

A problem stems from the fact that the Essential Requirement 3.5. is very generic while the requirements under the Ecodesign Directive and its implementing measures are very detailed. The approach applied in the GAD is in line with the principles of the New Approach. On the contrary, the energy efficiency requirements of the Ecodesign Directive and its implementing measures are very detailed and modern terminology which has changed since the adoption of the GAD in 1990 is used. This imbalance has resulted in speculations about the general applicability of the Essential Requirement 3.5. Furthermore, the terminology used in the GAD is outdated[48].

The risk is that the EU legislation on free movement of products and on energy efficiency will not be interpreted in a comprehensive and coherent way, if no action is taken to defined the relationship between the GAD and the more specific EU legislation on energy efficiency.

The described problem issue is due to the fact that the Essential Requirement 3.5. is formulated in a very generic way and that it uses outdated terminology. It has become urgent to resolve the principle issue which is the overall coherence of all EU legislation.

4.5.2. Who is affected, in what ways and to what extent?

The manufacturers of gas appliances and fittings, the notified bodies, the Member State authorities and the European Organisation for Standardization (CEN) are affected by the problem due to the current incompatibility of the legal provisions of the GAD and the very fast developments in the field of EU energy efficiency legislation.

Furthermore, the potential failures to comply with all the applicable legal requirements may result in less energy efficient products being placed on the market and increase in the emission levels.

The execution of installation works may be affected by the lack of clarity of energy efficiency requirements laid down for product units, because the Member States may, under certain conditions, set energy performance requirements for technical building systems[49] including e.g. gas-fired heating boilers and water heaters.

4.5.3. Evolution of the problem

Under the GAD, the interpretation of the state of the art takes place in the framework of standardisation. Around 35-40 harmonised European standards providing for the presumption of conformity to the GAD[50] requirement on the rational use of energy of gas appliances deal in an equal way with the energy efficiency aspect covered by Directive 92/42/EC[51]. This demonstrates that the concepts of "rational use of energy" and "energy efficiency" are considered to be equal.

Since the EU energy efficiency legislation is evolving fast[52], it is becoming more and more urgent to clarify the relationship between the GAD and the all the relevant pieces of specific EU energy efficiency legislation. For the sake of clarity, the GAD would need to clearly indicate that where the energy efficiency aspect referred to in its Essential Requirement 3.5. is covered more specifically by the Ecodesign Directive and its implementing measures, the GAD should not apply any more in respect to this aspect. Furthermore, the GAD terminology needs to be adapted to the modern one in order to avoid lack of clarity and therefore burdensome interpretation needs on which pieces of EU legislation apply to products as far as their energy efficiency is concerned. In the worst case, the potential overlapping of the two legal frameworks will cause an increasing number of clarification requests and even complaints as the manufacturers, notified bodies and other stakeholders are not in a position to determine how the legislation should be applied.

4.6. Requirements 4.6.1. Problem that requires action and its underlying drivers

Articles

No problem issues with the current Articles of the GAD have been identified except the communication of the types of gas and corresponding supply pressures in accordance to Article 2(2) of the GAD (see above section 4.4.).

However, a new Article will be introduced in order to clarify the general principle that in case aspects dealt with by the Essential Requirements of the GAD are subject to more specific EU harmonisation legislation (which is the case with the Ecodesign Directive and its implementing measures for the energy efficiency aspect), this legislation will apply instead of the GAD.

Essential Requirements (ERs)

The Essential Requirements have proved well cover the gas risks that appliances and fittings may present. Also the Public Consultation (2011-2012) and the IA Study (2012) confirmed that the possible modifications to the Essential Requirements suggested by stakeholders were generally related to semantic rather than substantive points. The experience on the implementation of the GAD has neither revealed any shortcomings in the current Essential Requirements except the need to align the Essential Requirement 3.5. with the more specific legal framework dealing with energy efficiency. This problem is separately dealt with above in section 4.5.

There are some broader safety concerns, in particular relating currently to CO poisoning, which is the leading cause of fatalities associated with gas appliances. However, the careful further examination of the accidents (see Annex VII Examination of accident data) showed that CO poisonings are largely related to matters which are outside the scope of the GAD (which is a product harmonisation directive), such as installation failures, ignorance of gas installation and building regulations (e.g. inadequate space ventilation for the installation as such or user closing the ventilation openings) or lack of maintenance.

Unlike e.g. the Machinery Directive (MD), the GAD does not specify the general design principles that must be applied in order to achieve the safety of appliances and fittings. This may in some cases attract irresponsible parties to use e.g. warnings on the products and in the user manuals for unsafe designs, instead of designing, as far as possible, inherently safe products. Therefore the GAD is said to not necessarily provide as high level of inherent safe product designs as the MD even though the gas risks of appliances are comparable to, or even more severe than, the risks of machines. In the MD this is accomplished by requiring the application of certain specific design principles[53] aiming for inherent product safety. Similar requirements are also given in the Essential Requirements of the PED.

No specific evidence on any large abuse of the absence of the above principles of safety integration is available however they would contribute to the EU key priority to protect and promote the health and safety of citizens. Several Member States and other stakeholders have highlighted the importance of the application of these principles which are already elements of the already existing design and manufacturing requirements, but unfortunately not provided in the legal text.

The absence of the principles of the safety integration is an issue relating to the current text of the Directive and can only be resolved by amending the GAD.

4.6.2. Who is affected, in what ways and to what extent?

To a very limited extent, the manufacturers of gas appliances and fittings, the notified bodies, the Member State authorities and the CEN might be affected by the absence of a specific Essential Requirement on principles of the safety integration.

The users may also be affected where economic operators would only use warnings on products and user instructions instead of adopting designs ensuring inherent safe products. For instance, the outcome of few safeguard clause procedures regarding parasol patio heaters (free standing terrace heaters) showed that safer designs could have been adopted.

4.6.3. Evolution of the problem

As actually no specific problem has been identified, it is not relevant to provide a description of its evolution. However, the revision of the GAD provides an opportunity to carefully consider introduction of improvements which would improve the clarity of the Essential Requirements thus contributing the health and safety as well as the energy efficiency of appliances.

4.7. EU right to act

This initiative concerns the proper and effective functioning of the internal market for appliances and fittings as regards health and safety risks and energy efficiency of gas appliances and their fittings. EU action in this area is based on Article 114 of the TFEU. The aspects addressed in this context are already regulated by the GAD. This legislation does not however address the identified problem issues as effectively as possible thus the objective of the proposal is simplification and clarification of the existing legal provisions. If actions are taken at national level to address the problems, they may create obstacles to the free movements of gas appliances and fittings. Therefore, any changes to the scope, procedures or requirements must be carried out at EU level in order to avoid distortions on the EU market. This should simultaneously improve the legal clarity, contribute to reduction of cost to manufacturers, notified bodies and authorities as well as ensure a common European framework for placing on the market appliances and fittings.

Due to the increasing internationalisation of trade, also the number of cross-border cases due to the identified problem issues is constantly rising. Coordinated action at EU level can much better achieve the objectives set, and will in particular render market surveillance more effective. Hence it is more appropriate to take action at EU level.

Although the fact of the non-harmonisation of the types of gas and supply pressures is a factor that affects the free circulation of an individual gas appliance, harmonised provisions concerning the design and the construction of gas appliances guarantee that it cannot be subject to restrictions to its free circulation on grounds related to the harmonised aspects.

Figure 2: Problem tree depicting the links between the problems issues (identified clarification needs), their drivers and the objectives.

5. Objectives 5.1. General policy objectives

The overall objectives of this initiative are to (1) better protect health and safety of users of gas appliances and fittings as well as to ensure the appropriate performance of these products, (2) improve the fair playing field for gas appliances sector's economic operators and (3) simplify the European regulation environment in the field of gas appliances and fittings.

5.2. Specific and operational policy objectives

The general, specific and operational policy objectives are presented below in Table 2.

Table 2. General, specific and operational policy objectives.

GENERAL || SPECIFIC || OPERATIONAL

Better protect health and safety of users of gas appliances and fittings as well as to ensure their appropriate performance || Ensure that the economic operators have adequate safety and performance relevant data available on the framework conditions || Specify the contents of information to be communicated on the types of gas and corresponding supply pressures used in the Member States

Ensure the clarity of the requirements || Clarify the requirements (Articles, Essential requirements and other provisions)

Improve the fair playing field for gas appliances sector's economic operators || Ensure legal clarity regarding the application of more specific EU product harmonisation legislation || Introduce a new general Article on more specific EU product harmonisation legislation

Clarify the Essential Requirement 3.5. on the rational use of energy

Simplify the European regulation environment in the field of gas appliances and fittings || Ensure that legislation is up to date || Remove the outdated exclusion of appliances with a normal water temperature that exceeds 105oC

Ensure clarity of the scope || Clarify the scope of the Directive by providing sector specific definitions

5.3. Consistency with other policies and objectives

This initiative is in line with the Commission’s policy on the Single Market (Single Market Act)[54] and Better Regulation policy.

6. Policy options 6.1. General remark

In line with the Commission policy to simplify the regulatory environment, it is proposed to change the Directive into a Regulation. The current Directive imposes clear and detailed rules to become applicable in a uniform manner throughout the Union. It can therefore be easily changed into a Regulation. This change will avoid the costs to the member States associated with the transposition of a Directive. In addition, it will allow for a more rapid application of the new legislation and it will help economic operators to conduct their business as they will have to deal with a single regulatory instrument rather than with 28 national laws transposing a Directive.

Since the modification of the scope of the GAD cannot be justified[55], the scope and the provisions of the GAD will remain unchanged and the revision of the GAD represents rather an exercise to clarify its provisions. Nevertheless, several different policy options are can be applied in order to achieve the objectives of the revision, i.e.:

1. “Do nothing”: This option represents the current situation with the implementation of the GAD. It is considers that the GAD Guidance Sheets as currently available are part of the status quo (see Annex IX for more information on the current GAD Guidance Sheets).

2. “Soft law”: This option is based on the “do nothing” option amended upon need with elaboration of new GAD Guidance Sheets. It can be foreseen that all of the problem issues identified in this IA Report will require elaborating new GAD Guidance Sheets.

The issues examined as part of the policy option “soft law” are not covered by the current GAD Guidance Sheets.

3. “Legislative measure”: This option is undertaken by amending the legal text itself.

6.2. Scope - Product coverage Do nothing.

Option 1 is to leave the existing situation unchanged. The product coverage of the Directive will not be changed. Products that are covered have to fulfil the requirements of the GAD while products that are not covered do not have to fulfil its requirements including those with normal water temperature above 105oC. The described problem issue will persist however it must be noted that it is caused by an outdated provision of the GAD that was necessary to include in the GAD at the time of its adoption.

Further clarify the product coverage in the GAD Guidance Sheets (Soft law).

Option 2 is a soft law option. The Directive will not be changed but the GAD Guidance Sheets on the application of the GAD are used to explain, in a more detailed way[56], the product coverage of the Directive.

Remove the outdated exclusion of appliances with a normal water temperature that exceeds 105oC.

Option 3 uses legislative measures. The GAD will be changed. The outdated (see section 4.2.) exclusion of appliances with a normal water temperature exceeding 105oC will be removed since it is not considered to serve any useful purpose.

6.3. Sector specific terminology and definitions Do nothing.

Option 1 is to leave the existing situation unchanged. The GAD will continue not providing definitions for the terms used e.g. to define its scope and the specific terminology used in some of the Essential Requirements. The described problem will persist since agreeing with interpretation on the meaning of the sector specific terminology will remain necessary in order to clarify the provisions of the GAD.

2. Provide definitions for the sector specific terminology in the GAD Guidance Sheets (Soft law).

Option 2 is a soft law option. The Directive will not be changed but the GAD Guidance Sheets on the interpretation of the GAD will be used to explain the meaning of the sector specific terminology thus preventing misinterpretation. Preparation of GAD Guidance Sheets will be a continuous process since guidance documents will be prepared upon needs arise.

Introduce the definitions for the sector specific terminology in the GAD.

Option 3 uses legislative measures. The GAD will be changed. The missing definitions for the sector specific terminology will be introduced in the GAD thus clarifying the scope of the Directive and the Essential Requirements concerned.

6.4. Communication of the types of gas and the corresponding supply pressures Do nothing.

Option 1 is to leave the existing situation unchanged. Article 2(2) of the GAD will continue to oblige the Member States to communicate the types of gas and corresponding supply pressures used on their territory without specifying the parameters and other information to be communicated. The described problem will persist since no adequate data is made available on the gas supply conditions in the Member States. The problem is getting worse due to the increasing use of gaseous fuels from non-conventional sources resulting in greater differences in the gas qualities.

Voluntary agreement on the contents of communicating the types of gas and corresponding supply pressures (Soft law).

Option 2 is a soft law option. The Directive will not be changed but the GAD Guidance Sheets on the interpretation of the GAD will be used to better determine the parameters which should be communicated by the Member States in order to ensure the availability of adequate and comparable information on the types of gas and the corresponding supply pressures.

Introduce the requirements for the contents of the communication of the types of gas and corresponding supply pressures.

Option 3 uses legislative measures. The GAD will be changed. Requirements for the contents and the format of the information to be communicated by the Member States on the types of gas and corresponding supply pressures will be introduced in the GAD in order to ensure that adequate information on the gas supply conditions will be made available. This will include the definition of the necessary parameters and other relevant information to be communicated as well as the template to be used.

6.5. Rational use of energy Do nothing.

Option 1 is to leave the existing situation unchanged. The recital of the GAD referring to 'energy conservation' and the Essential Requirement 3.5. referring to 'rational use of energy' will remain those provisions of the GAD which establish its relationship with the concept of 'energy efficiency'. The described problem will persist and get even worse because of the fast development in the field of EU energy efficiency legislation.

Voluntary agreement on interpretation and application of the Essential Requirement 3.5.

Option 2 is a soft law option. The Directive will not be changed but the GAD Guidance Sheets on the interpretation of the GAD will be used to clarify the inter-relationship between the GAD and the system introduced by the Ecodesign Directive and its implementing measures45, and which one shall be considered as the more specific EU product harmonisation regulation to be applied as far as the energy efficiency aspect is concerned.

Introduce a reviewed and supplemented Essential Requirement 3.5. by dividing it, where necessary, to a set of requirements dealing with energy efficiency in a compatible way with the specific EU legislation.

Option 3 uses legislative measures. The GAD will be changed. The current Essential Requirement will be supplemented by dividing it into a set requirements aligned with those of the recent EU energy efficiency legislation. This way it will be clarified that the concept of 'rational use of energy', as referred to in the GAD, deals with the energy efficiency of gas appliances in an equal meaning and extent as the implementing measures under the Ecodesign Directive. Furthermore, the GAD will be amended by introducing a new article (dealt with below in section 6.6.) highlighting the overruling effect of any piece of EU legislations dealing in a more specific way with a aspects also covered by the GAD thus ensuring that no legal uncertainty regarding the applicable regulation remains.

6.6. Requirements Do nothing.

Option 1 is to leave the existing situation unchanged. The Articles, Essential requirements and the Annexes of the Directive will not be changed. The relationship between the GAD and any EU legislation covering more specifically aspects covered also by the GAD will not be addressed. Products that are covered have to fulfil the requirements of the GAD while products that are not covered do not have to fulfil its requirements. The described problem issue will persist, amongst others, due to the absence of the general design principles in the legal text and fast development in the field of EU energy efficiency legislation.

Further clarify the requirements (Articles, Essential Requirements and provisions of the other Annexes) in the GAD Guidance Sheets (Soft law).

Option 2 is a soft law option. The Directive will not be changed but the GAD Guidance Sheets on the interpretation of the GAD will be used to e.g. clarify which piece of EU legislations should be applied in order to deal with aspects dealt with in seemingly overlapping Directives (e.g. the implementing measures under the Ecodesign Directive as regards energy efficiency) or how the Essential Requirements and the provisions in the other Annexes shall be applied. A specific GAD Guidance Sheet could be elaborated to address the importance of application of the general design principles not provided in the legal text.

Introduce improvements to the requirements (Articles, Essential Requirements and provisions of the other Annexes).

Option 3 uses legislative measures. The GAD will be changed. A new Article on the overruling effect of any piece of EU legislations dealing in a more specific way with a aspects also covered by the GAD will be introduced. The presentation of the Essential Requirements in Annex I will be improved in order to clarify the requirements and to highlight safety concerns relating in particular to carbon monoxide (CO), where possible. The specific design principles aiming for inherent product safety will also be incorporated into Annex I stipulating the general principles on how the safety related and other features of gas appliances relevant for the GAD shall be achieved.

7. Analysis of impacts 7.1. General remark

The analysis of impacts will be presented in steps. First an overview of the policy options and their impacts will be provided (7.2.). Next all the policy options will be assessed qualitatively (section 7.3.) and preferred options (section 7.3.) will be selected. The summary of the in-depth analysis of these options will follow (section 7.4.; the in-depth analysis of the policy options is provided in Annex XI). The need for mitigating measures for the most affected parties will be considered (section 7.5).

7.2. Overview of the relevant options, their potential impacts and the methodology for their assessment

The types of impacts that are assumed to be the most relevant to revision of the GAD are provided in Table 3. Environmental impacts have not been included in the list of relevant impacts; they are not expected to be significant as none of the options are aimed at addressing aspects of gas appliances or changing their technical requirements (such as emissions of gases) in a manner which would affect their environmental impacts, e.g. by introducing more stringent efficiency requirements.

Table 3: The types of impacts assumed to be the most relevant to revision of the GAD

Pre-screening of the Relevance of the Impacts

Impact type || Relevant?

Economic impacts

Functioning of the internal market and competition || Relevant

Competitiveness, trade and investment flows || Possibly Relevant

Operating costs and conduct of business/SMEs || Relevant

Administrative burdens on businesses || Relevant

Public authorities || Relevant

Innovation and research || Possibly Relevant

Consumers and households || Relevant

Third countries and international relations || Possibly Relevant

Social impacts

Employment and labour markets || Possibly Relevant

Standards and rights related to job quality || Possibly Relevant

Public health and safety || Relevant

Source: Impact Assessment Study (2012)

Since the modification of the scope of the GAD cannot be justified, the legal framework established by the GAD will remain unchanged. As a consequence, the economic operators and the other stakeholders affected by the GAD will also remain the same as currently. Therefore the revision of the GAD is representing rather an exercise to improve the readability and clarity of the scope, the Essential Requirements in Annex I and the provisions in the other Annexes.

In the absence of particular concrete major problems (see section 4.) that need to be addressed, the proposed modifications are likely to involve minor or no costs with minimal economic and social impacts except those minor impacts of proposed clarifications which will yet highly facilitate the application of the GAD by the economic operators through improved legal clarity and certainty. Consequently, it is impossible to derive quantitative data on any specific impacts, however the expected marginal benefits have been dealt with in a proportionate way carrying out a qualitative assessment.

The issues concerning clarification of the existing legal provisions can be dealt with by different policy options presented above in section 6.1., i.e. by applying the “soft law” option based on elaboration of interpretation documents upon needs and “legislative measure” option comprising of amending the provisions of the GAD. The “do nothing” might not be able to respond to the identified problem issues however it is considered in this report as the baseline option.

The qualitative assessment of the policy options is used to enable the selection of the most preferred option. For instance, it is possible to assess whether the proposed changes are favourable to safety, whether the effects of the option provide a steady solution to the identified problem and whether it is likely that the option contributes to the simplification and clarification of the legal framework established by the GAD.

Both economic (including impact on competitiveness) and social impacts have been assessed, to the extent feasible.

Additional information about the applied methodology can be found in ANNEX X.

A more detailed analysis of the expected impacts on sectorial competitiveness and the competitiveness proofing can be found in ANNEX XI.

7.3. Qualitative analysis

The magnitude of each impact is assessed according to the following scale:

+ + significant positive impact

+ minor positive impact

0 no impact / baseline

- minor negative impact

- - significant negative impact

It is worth noting that even the legislative measure option 3. amending the legal text does not have significant economic and social impacts except the minor impacts of the proposed clarifications. Consequently, only qualitative assessment of the expected marginal benefits is possible. These benefits have been dealt with in a proportionate way based on the responses to the Public Consultation (2011-2012), the findings and conclusions of the IA Report (2012) and the accumulated experience of the gas appliances sector[57] on the functioning of the GAD.

The results of the analysis are presented in Table 5. in section 8. The allocation of the scores of each policy option is provided in ANNEX XI.

7.3.1. Scope - Product coverage Do nothing.

No impact. For the baseline scenario see description in chapter 4.2.1. and 4.2.3.

Further clarify the product coverage in the GAD Guidance Sheets (Soft law).

By elaborating a specific GAD Guidance Sheet focusing on the outdated exclusion of appliances with the normal water temperature exceeding 105oC it could be clarified that the temperature limit is not relevant any more as the Pressure Equipment Directive has replaced the former national legislations and no risk to overlap with legislation dealing with risks due to pressure exists.

Nevertheless, as designs with the normal water temperature exceeding the 105oC limit given in the legal text could yet be placed on the market, the “soft law” option would not resolve the current legal ambiguity regarding these designs. Manufacturers could adjust the normal water temperature of their designs above the 105oC limit that way avoiding the application of the GAD. In theory, this could result in that gas appliances representing lower safety levels could be placed on the market.

However, no products with a normal water temperature exceeding 105oC could be identified on the marker. Consequently, no information about incidents with gas appliances with a normal water temperature exceeding 105oC could be detected.

This option will lead only to a slightly clearer legal situation. The exclusion is maintained.

Remove the outdated exclusion of appliances with a normal water temperature that exceeds 105oC.

With a change of the regulatory text a clear legal situation will be established. All manufacturers will be reached. Consequently, the obsolete exclusion not considered to serve any useful purpose does not any more require interpretation.

The reduction of potentially non-compliant products is minimal due to the marginal number (if any) of gas appliances with a normal water temperature exceeding 105oC. Nevertheless, by removing the outdated exclusion it is assured that the inconsistency in the legal framework is rectified and legal clarity is assured.

For manufacturers which are affected by the change, there will be costs due to the process of making the products compliant with the Directive. However, domestic appliances do not generally have a normal water temperature above 105oC. No gas appliances with a normal water temperature exceeding 105oC or manufacturers of such appliances were identified during the impact assessment process. The expansion of the temperature threshold would mainly include appliances used in industrial processes however these will remain separately excluded from the scope of the GAD.

7.3.2. Sector specific terminology and definitions Do nothing.

No impact. For the baseline scenario see description in chapter 4.3.1. and 4.3.3.

Several GAD Guidance Sheets interpreting the scope have been adopted in order to interpret the product coverage of the Directive. They are necessary in order clarify, in the absence of the definitions for the terminology used to define the scope and the exclusions, which products are covered and which remain outside the scope (see ANNEX IX).

Provide definitions for the sector specific terminology in the GAD Guidance Sheets (Soft law).

Using this option the scope and the concerned Essential Requirements will be clarified by providing in GAD Guidance Sheets the currently missing definitions for the sector specific terminology used in the legal text. A full legal clarity cannot be assured due to the fact that innovative products based on new technologies will be placed on the market requiring frequently revision of the existing guidance documents or elaboration of completely new GAD Guidance Sheets.

Using GAD Guidance Sheets will assist to achieve a better legal clarity which can be assumed to reduce the number of non-compliant products. However, as the involvement of the Member States, manufacturers, notified bodies and the Commission in the adoption process of the GAD Guidance Sheets must always be assured and unanimity must be reached, the process is very time-consuming and burdensome. Even