Select Committee on European Scrutiny Eleventh Report


4. ELECTROMAGNETIC COMPATIBILITY


(24184)

5562/03

COM(02) 759


Draft Council Directive on the approximation of the laws of the Member States relating to electromagnetic compatibility.

Legal base:Article 95 EC; co-decision; QMV
Document originated:23 December 2002
Deposited in Parliament:24 January 2003
Department:Trade and Industry
Basis of consideration:EM of 29 January 2003
Previous Committee Report:None
To be discussed in Council:No date set but see paragraph 4.9
Committee's assessment:Politically important
Committee's decision:Not cleared; further information requested



  4.1  The objective of the Electromagnetic Compatibility Directive[7] (EMC Directive) is to guarantee the free movement of electrical equipment, whilst creating an acceptable electromagnetic environment within the EU. It seeks to ensure that electromagnetic disturbances produced by electrical equipment do not affect the correct functioning of other such equipment, including telecommunication and electricity distribution networks, and that such equipment has an appropriate level of immunity to electromagnetic disturbances so that it can function as intended.

  4.2  The document is a new draft Directive to replace the existing one. It retains the same objectives but attempts to clarify the original Directive and to reduce unnecessary administrative burdens on industry.

  4.3  In 1997, prompted by experience gained in applying the existing Directive, the Commission issued an informal guide which it drew up with the help of national authorities and other interested parties. The Commission says that the EMC Guide has made a substantial contribution towards homogeneous application of the Directive, but it is informal and does not provide legal certainty. The Directive was identified as a candidate for the SLIM[8] initiative and in 1998 a SLIM panel, on which the UK was represented, recommended that it should be revised so as to give legal weight to solutions identified on a number of issues, to reduce administrative burdens and to provide greater clarity. The Commission set up a working group which embarked on an extensive consultation during which several drafts were placed on the Commission website so as to attract comments from other interested parties. It has also held open meetings in Brussels.

  4.4  The draft contains changes to the existing Directive in the following areas:

  • clarification of the scope of the Directive by more clearly defined definitions and exclusions;

  • extension of the scope of the Directive to include ready-made connecting devices;

  • the treatment of fixed installations by means of a more appropriate regulatory regime;

  • more detailed essential requirements;

  • clarification of the role of harmonised standards;

  • simplification of the conformity assessment procedure, reduced to a single procedure for apparatus;

  • increasing manufacturers' choice by abolishing compulsory third-party intervention where harmonised standards have not been applied but allowing in all cases for voluntary involvement of conformity assessment bodies for apparatus; and

  • improved market surveillance through better traceability of the manufacturer.

The Government's view

  4.5  The Parliamentary Under-Secretary of State for Science and Innovation (Lord Sainsbury of Turville) notes that the Commission carried out an unprecedented amount of consultation and re-drafting over a period of about two years. It is therefore reasonable to assume, he suggests, that the proposal will enjoy a high level of general support, even if there are areas that will not meet the needs of all players. He does not indicate which these might be, but he does say that the proposed changes are not controversial, in that they build on established guidance arrived at with a broad consensus. He then comments:

"The UK position is that, in principle, most of the changes are in line with the present UK thinking particularly in terms of trying to make the Directive more workable and reduce unnecessary burdens on industry. The conformity assessment regime for installations accords with the present UK position on installations expressed in the UK Regulations. In addition, the decision to abolish the mandatory requirement to make use of third party Competent Bodies when harmonised standards are not used is a move which is strongly supported by the UK in the interests of proportionality.

"Most of the other proposals appear to be reasonable except for three which will require further investigation and assessment during a Regulatory Impact Assessment (RIA). The first relates to additional marking requirements to enhance traceability by enforcement authorities. This is a factor that affects other Directives and is not unique to EMC. However, the cost/benefit needs to be looked at in more detail. The second relates to the bringing into scope for the first time of certain types of "ready made connecting devices" for the transmission of signals. The Commission cost benefit analysis attaches considerable cost to this item yet provides little evidence of the need in terms of such items causing electromagnetic interference. The third relates to a possible tightening of the requirement to apply harmonised standards in a particular way. This will need further investigation to establish whether it will, in practice, be a change from how this issue is dealt with at present."

Consultation

  4.6  The Minister says that interested parties consulted by the Department of Trade and Industry include other Government departments, industry, trade associations, test organisations and users. It will continue to take into account the view of these interested parties when deciding the line to take in future discussions. The general view expressed by those consulted so far is that the changes are not controversial but that industry has now settled down with the present Directive and sees little benefit in change. There is however concern about the extension of scope to include "ready made connecting devices", the additional marking requirements and the possible tightening of the application of harmonised standards.

Regulatory Impact Assessment (RIA)

  4.7  The Commission carried out an extensive cost/benefit analysis, using an independent UK-based consultant, which was published in January 2002.[9] The Government hopes to build on this material when preparing its own RIA, which it will submit as soon as available.

Financial implications

  4.8  The Minister says:

"The Commission CBA makes it clear that this simplification of the EMC Directive will come at some cost to industry and users. It suggests that the industry which has a _400 billion (£266 billion) EU turnover will face on average a net cost of _2.1 billion (£1.4 billion) amounting to 0.1% of the sector's turnover discounted over an 8 year period (expected life of the Directive). As the UK may be described as a "typical" EU state in terms of this industry, these figures if validated could be taken as applying in the UK on a pro-rata basis with the net cost of 0.1% of turnover also being applicable. It must be remembered however that this is an average and there will be variation depending on the sub sector concerned. It is also worth noting that the Commission did make some changes to the draft as a result of the RIA itself indicating specific areas where the costs were high. This suggests that the actual costs now are likely to be somewhat lower than the RIA indicated.

"However the three areas of concern mentioned above were not changed as a result of the RIA and account for about 90% of the gross costs of the revision. As such these areas will be further investigated in the UK RIA as will the specific effect on SMEs (which account for some 60% of the EU turnover)."

Timetable

  4.9  It is possible that the proposal will be introduced by the Greek Presidency, before the end of June, but this is not yet clear.

Conclusion

  4.10  The Minister identifies three areas of concern which were not addressed following the Commission's regulatory impact assessment. They account for about 90% of the gross costs of the revisions proposed and the Minister says that British industry is unconvinced of the benefit of the changes. He has promised to investigate these issues further and to deal with them in the UK Regulatory Impact Assessment (RIA) which the Government is now preparing.

  4.11  We ask the Minister to ensure that we are given adequate opportunity to consider this proposal again, with the benefit of the UK's RIA, before any decision on it is taken by the Council.

  4.12  We do not clear the document.


7  Council Directive 89/336/EEC of 3 May 1989, amended by Directives 91/263/EEC, 92/31/EEC and 93/68/EEC. Back

8  Simpler Legislation for the Internal Market. Back

9  Cost Benefit Analysis on the draft Amendment of the EC Directive on Electromagnetic Compatibility Final Report prepared for European Commission Directorate-General Enterprise January 2002. Available at:- http://europa.eu.int/comm/enterprise/electrequipment/engin/cba.pdf. Back


 
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