Impact Assessment of Various Policy Options for a Possible Amendment of the Low Voltage Directive 73/23/EEC
  

Client: European Commission, Directorate-General for Enterprise and Industry
Date: 2005
Partners: Quotient Associates
   

The Low Voltage Directive (LVD) aims at regulating the free movement of electrical appliances in the EU internal market, whilst ensuring a high level of protection to the public and property.

To modernise the LVD, the European Commission set out a number of policy options and other suggested changes that could lead to the inclusion of electrical appliances that are currently excluded, and establish an internal market for some of these in a cost-effective manner.

Scope of the Study

The aim of the study, carried out by RPA and Quotient Associates, was to provide the Commission with an assessment of the economic impact of five Policy Options for updating the LVD.  These would extend its scope to other electrical equipment, namely those operating in the extra low voltage area, including motor vehicle devices, and electric fence controllers.

The economic impact assessment examined the costs and benefits to the EU economy in both qualitative and monetary terms.  Environmental and social impacts were not included in the scope of the study.

Approach to the Study

The study involved consultation with manufacturers, distributors, suppliers and importers in the EU electrical appliances sector, through face-to-face meetings, questionnaires and telephone discussions.  Responses were received from over 200 companies and five trade associations.

Data collection and analysis ran concurrently with consultation, to allow any data shortages or inconsistencies to be addressed through further or ongoing consultation.

Impacts were assessed for two groups:  manufacturers and (for fence controllers only) certification bodies.

Conclusions

The key benefit arising from the Policy Options is their potential to increase the size of the EU market through harmonisation.  Very small increases in the market would offset even the worst-case one-off costs and ongoing costs.

Further Developments

After careful consideration, the Commission decided that the decision on whether to revise the LVD should await the outcome of a review of the overall approach to technical harmonisation (i.e. the review of the New Approach directives more generally). It should also be noted that the Low Voltage Directive has been re-codified as 2006/95/EEC.

Links

See:  www.ec.europa.eu/enterprise/electr_equipment/lv/index.htm