Official Report: Minutes of Evidence

The Chairperson (Ms Ferguson): I welcome Damien Doherty, the chief inspector of Trading Standards Service in the Department for the Economy; and Mark McGregor, from the Department's trade and Windsor framework branch. I invite you to brief the Committee.

Mr Mark McGregor (Department for the Economy): Thank you, Chair and members. I will provide a short overview of directive (EU) 2026/706, which amends directive 2014/32/EU as regards measuring systems for electric vehicle supply equipment (EVSE), compressed gas dispensers and electricity, gas and thermal energy meters, which I will from now refer to as the directive.

I will focus on the substance of the act and the key changes that it introduces. At the outset, however, I should say that the directive concerns non-devolved matters. As a result, the Department for the Economy has limited subject matter knowledge and competence in the area. We have therefore relied heavily on the support of the Office for Product Safety and Standards (OPSS) in the Department for Business and Trade (DBT) to assist us in meeting the Committee's requirements. The assessments that have been provided and our responses to any questions draw on OPSS policy and its technical expertise.

I will now turn to the directive's context and purpose. The directive is a published replacement act that amends an existing measuring instruments directive (MID). The MID sets harmonised EU standards for measuring instruments that are used for commercial transactions, public interest measurements and consumer protection for, for example, electricity, gas and heat meters. The European Commission brought forward the proposal because the MID had remained largely unchanged for more than two decades. During that time, new technologies and new uses have emerged that were either not covered at all or only partially covered by the existing framework. The risk that the EU identified was the increasing fragmentation of national rules and a loss of legal certainty for manufacturers, operators and consumers.

The directive is a targeted technical amendment rather than a wholesale rewrite of the MID. Its core purpose is to update the directive's scope and technical requirements so that it clearly applies to modern technologies. In particular, the directive brings the following into scope or clarifies their treatment: electric vehicle supply equipment, where electricity is supplied to a vehicle and billed based on measured quantity; compressed gas dispensers, including hydrogen; thermal meters used for cooling; and updated requirements for electricity and gas meters, including direct current (DC) measurement and smart meter functionality.

I will now set out the key changes. There are several key features of the adopted directive that are particularly relevant. First, the directive introduces dedicated annexes for EVSEs and compressed gas dispensers. That provides a clear legal basis for conformity assessment and market surveillance, which did not previously exist in a harmonised form. Secondly, the directive updates essential requirements across a number of instrument categories to reflect modern technologies, including remote or app-based displays, provided that consumer access to information and tamper protection are maintained. Thirdly, the directive strengthens legal certainty around certificates and notified bodies. It clarifies the validity of existing certificates and allows conformity assessment bodies to be notified and to issue certificates ahead of an application date, where they already meet the new requirements.

I will now speak about entry into force, transposition and application. The directive has been formally adopted and enters into force shortly after publication in the Official Journal of the European Union (OJEU). Member states are required to transpose the directive by 10 April 2028, with new requirements to apply from 10 August 2028. There are also transitional provisions, including in particular that EVSEs and compressed gas dispensers that are placed on the market under existing national rules before April 2030 may continue to be made available and used. Certificates that are issued under the existing framework may remain valid, subject to an ultimate long-stop date in 2038.

I will now turn to the directive's relevance to Northern Ireland under the Windsor framework. The measuring instruments directive, as applied by the act, would apply in Northern Ireland, subject to any democratic scrutiny. That means that the updated EU requirements would need to be implemented in Northern Ireland law and applied to relevant measuring instruments that are placed on the Northern Ireland market. The UK Government's explanatory memorandum (EM) confirms that implementation is expected to be achieved through amendments to the Measuring Instruments Regulations 2016 (MIR), using powers under the Product Regulation and Metrology Act 2025.

In summary, this is a technical but important update to the EU's metrology framework that responds to the growth of electric vehicle charging, alternative fuels and smart metering, while seeking to preserve consumer protection and market confidence.

The Committee submitted some questions to the Department in advance, and I will address those now. You said that guidance from the UK Government's (UKG) Office for Product Safety and Standards states that the Measuring Instruments Regulations 2016 currently apply across the UK but that some of the provisions apply differently in Northern Ireland. You asked how the application of the replacement EU act would affect any current GB-NI regulatory divergence or alignment. The OPSS provided the answer that, under the terms of the Windsor framework, the new directive will apply in Northern Ireland. It will introduce new elements. The scope of the directive has been extended, and the regulations in NI will apply to a wider range of products, such as direct current meters and gas calorific value determining devices, and will introduce new display options for gas and electricity meters.

The Government are already taking steps to explore the benefits of having a consistent UK regulatory landscape, starting with their plans to lay a statutory instrument (SI) in 2026 to enable active electrical energy meters that are not utility meters to have remote-only displays. That will come into force in 2027, within the 30-month transition deadline for the directive. As the UK Government have set out, they will also be reviewing all other new measures included in the new directive to see whether implementing similar measures would benefit the whole of the UK internal market. The review will be informed by a call for evidence that the Department for Business and Trade plans to issue later this year, alongside a full programme of stakeholder engagement, which will include detailed consideration of whether GB should match the EU measures, including whether to apply a remote display option to domestic gas and electricity utility meters. As noted, there is a 30-month transition deadline that allows for similar measures to come into force in Great Britain before such updates apply to Northern Ireland.

In your second question, you asked about the impact that that is likely to have on industry and/or consumers in Northern Ireland. The Government are already taking steps to explore the benefits of having a consistent UK regulatory landscape by launching a call for evidence, and they therefore do not anticipate negative impacts on industry and/or consumers in NI. That is especially the case because industry will have ample time to adapt as a result of the 30-month transition period from when the directive comes into force on 9 April 2026.

In your third question, you asked how that compares with the likely impact of not applying the replacement EU act in Northern Ireland. The potential benefits for consumers and businesses would not be realised if the new requirements were not applied in Northern Ireland. Anticipated business benefits include simplifying compliance for manufacturers operating across both the GB and EU markets, reducing design complexity and enabling more efficient product development and trade. For consumers, anticipated benefits include better access to flexible energy supply services and tariffs and the ability to monitor usage digitally, which better reflects existing consumer behaviour.

The UK Government are considering applying similar measures in GB and have already committed to adopting a similar measure on the display screen requirements for energy smart appliances (ESAs). We are unable to comment further on the impact here, as the UK Government have undertaken no formal assessment of the impact of the directive.

Your fourth question refers to the fact that, in the UK Government's EM on the proposed EU act, they previously stated that they:

and indicated that the Product Regulation and Metrology Act 2025 would allow them to amend the MIR accordingly. You asked whether the UK Government have provided any further update on that. The original EM was provided in April 2025. In February 2026 the Government published a response to their consultation on measuring instruments display requirements for ESAs on GOV.UK. That indicated an intention to implement in GB an option similar to that in the new directive in order to allow certain electricity meters, such as those in EV charge points and heat pumps, to have remote-only displays. The response also noted that the Government are considering all measures in the new directive and whether similar provisions may be appropriate for the GB market. The decision on whether to implement similar measures in GB will be informed by a call for evidence that the Government plan to issue later this year.

In your fifth question, you asked whether application of the replacement EU act would have any impact on GB-based businesses that wish to export products to NI. The UK Government are already taking steps to explore the benefits of having a consistent UK regulatory landscape and therefore do not anticipate negative impacts on industry and/or consumers in NI. That is especially the case because industry will have ample time to adapt as a result of the 30-month transition period. Longer transition regimes, of up to four years, will be permitted for electric vehicle supply equipment and compressed gas dispensers.

The Government have already committed to adopting a similar measure on the display screen equipment requirements and will be issuing a call for evidence this year to determine whether the remaining requirements in the new directive should be considered for the GB market.

In your sixth question, you asked whether the UK Government have highlighted any risks or problems that may arise from the replacement EU act applying in Northern Ireland and, if so, what mitigations they have proposed. The UK Government have not identified any risks or problems arising from the replacement act's applying. They are already taking steps to explore the benefits of having a consistent UK regulatory landscape, starting with an SI — statutory instrument — to adopt measures concerning the remote display screen option for energy smart appliances in the MIR's essential requirements later this year, followed by a call for evidence.

In your seventh question, you asked whether the UK Government have highlighted any likely benefits from the replacement EU act's applying in NI and, if so, what our assessment is of those benefits. The UK Government have undertaken no assessment of that issue.

In your eighth question, you asked whether we can provide any details of any engagement that has taken place on the replacement EU act and of potentially impacted stakeholders. On the first aspect, there was a question about the new EU legislation included in the Government's recent consultation on measuring instruments display requirements for ESAs. The scope of the consultation, which received 42 responses, covered GB only, and, given its timing, the comments related to the Commission's draft proposal and not the final text.

Potentially impacted stakeholders are the measuring instruments industry, the energy smart appliances sector, public charge points for electric vehicle manufacturers and emerging industries such as businesses engaged in providing alternative fuel dispensers.

In your ninth and final question, you ask: if any engagement has taken place, what potential benefits, risks or costs to businesses and/or consumers have been highlighted. Some limited engagement on the EU draft proposal was undertaken through the inclusion of a question in the Government's earlier consultation. In particular, industry stated that alignment between the MIR and the MID would simplify compliance for manufacturers operating across both the GB and EU markets, reduce design complexity and eliminate the need for separate hardware variants, thus enabling more efficient product development and trade. Respondents also suggested that alignment would support business growth and reduce administrative burdens, as they will be able to supply the same product to both markets. The consultation also highlighted the fact that the UK Government's proposal to amend for GB the physical display requirement in the MIR for active electrical energy meters in energy smart appliances would deliver tangible benefits to businesses and consumers.

Introducing the option for a remote display alongside the integrated physical display would give manufacturers flexibility to supply ESAs with or without physical displays, based on consumer preference. That approach reflects modern consumer behaviour, including increasing use of remote and digital interfaces. It also aligns with the new directive amending the MID. It will therefore help preserve the functioning of the UK internal market while enabling innovation and consumer choice. Benefits and risks to businesses and consumers will be explored further in the call for evidence on applying similar measures in GB that we propose to publish later this year.

That concludes our evidence, and we are very happy to take any further questions that the Committee may have.

The Chairperson (Ms Ferguson): Thank you, Mark.

Dr Aiken: Thanks very much indeed, team, for giving the evidence. I have a couple of questions. First, the issue of smart meters is of great interest, particularly for reforming the Northern Ireland electricity market. How much interaction have you had with the Utility Regulator to ask whether any of the changes in the directive will impact on what it is trying to do with the roll-out of smart metering?

Before I ask my second question, I declare an interest: I am thinking about buying an electric car and want a home charging unit. When His Majesty's Government say that they do not anticipate negative impacts, the "do not anticipate" bit always gets me a bit concerned. Has there been any communication between you and the installers of EV charging units in Northern Ireland? If they are to be approached to do that, when is that likely to happen? I would like an answer to that.

Finally, the Government say that there will be a 30-month transition period in which they are expecting GB to align with the European Union on a lot of the issues, but there are some areas on which the Government have not explicitly said that they will not align.

Do you have any information in response to those three questions, please? Over to you.

Mr McGregor: I will take the first question, and perhaps Damien can come in on the second one.

We engaged with the Utility Regulator via the energy division in DFE at the proposal stage. It expressed no concerns at that time, and there has been limited change since. We have reached out again to the Utility Regulator via the contact branch in DFE, but, because of the short turnarounds, we have not had a response from the Utility Regulator on the update as of yet.

We had five days from notification of the adopted act to get the material to you. We are waiting for that update to come to us. If there is any substantive comment, we will forward that to members when we receive it. The comment from the Utility Regulator was included in the briefing at the proposal stage, and, as I said, there has not been much change since then.

Dr Aiken: I would quite like to get that. If John French has any views on the issue at all, no matter what they are, I would not mind seeing them.

Mr McGregor: Yes. We will follow up on that and send through anything that we receive in writing.

Mr Damien Doherty (Department for the Economy): I will start with your question on the words "do not anticipate". From the conversations and engagement that we have had with the Office for Product Safety and Standards, it seems to be the case that the OPSS will look at everything to do with the directive in the round. There does not appear to be any indication to us that when the OPSS consults on the directive, it will not consult on all its elements. In fact, the opposite is the case. Based on the industry engagement that we have had, the directive will be very welcome. It creates harmonisation and standards and ensures that there is no divergence between Northern Ireland and GB. That is what the Product Regulation and Metrology Act 2025 was brought in by the UK Government to do.

We will have to take your question about smart appliances back to our energy division colleagues and get some guidance from them. Unfortunately, I cannot answer that one, as it is outside my remit, Steve.

Dr Aiken: If you could. Funnily enough, over the past couple of days, I have been around every car dealer in the countryside trying to talk to them about various things. When we were talking about smart meters, they kept talking about EV charging units and some of the EU regulations that are coming in. They said that they could not source some of those units from GB and that they were having other issues. Once they heard that I sit on the Windsor Framework Democratic Scrutiny Committee, I learned more about home charging units than I thought was possible to know. I know quite a lot about them, however, so I thought that I would raise question with the officials before us.

Mr Martin: Thank you very much, gentlemen, for joining us this morning. I will read paragraph 13 from the Department for Business and Trade's explanatory note (EN) from 31 March and then ask my question. You may have it there. It states:

There is some reference to the requirement not to retrofit in the directive. Are the measuring instruments on the list that I read out subject to retrofitting or not?

Mr McGregor: Unfortunately, the answer to that requires subject matter expertise, so we will have to take your question away to the Office for Product Safety and Standards and then provide the answer to you in writing. We will contact the office immediately after we leave the meeting and, with a fair wind, should have the answer with you by tomorrow. We are getting into technical detail about the types of meters, retrofitting and the like, so we need the subject matter experts to provide the answer.

Mr Martin: That is fine. I am happy to get that back in writing. It is just that it is quite a significant list, and, although I understand the scope of the directive and some of the reasons behind it, one of the benefits would be that those measuring instruments did not require retrofitting. It would be quite extensive if the directive were such that that list that the EN references did require it. I did not know the answer, so I thought it was a question worth asking. Perhaps we can get an answer to that question, Chair.

Mr Doherty: May I add to that, Chair?

The Chairperson (Ms Ferguson): Yes, Damien.

Mr Doherty: The EN does state that there will be no retrofitting obligations for existing EV charging stations or existing gas dispensers. Those are measuring instruments that are already in the Measuring Instruments Regulations. Thankfully, that creates no additional costs or burdens for any businesses. We can, however, take the question back and get a fuller answer, if required.

Mr Martin: That would be useful, because the list is a bit more extensive than those two measuring instruments. It would be excellent to hear all are covered.

Do we know the proportion of utility meters in Northern Ireland that are remote only?

Mr McGregor: No, we do not. That question will have to be directed to the Utility Regulator, so, if we are to contact the Utility Regulator, we can include that question.

Mr Martin: It would be great if you could add that to the list of things on which John may be able to comment.

My final question is on the measuring system for hydrogen compressed gas dispensers being brought in. I am thinking particularly the manufacturing businesses in Northern Ireland that use that technology. Does that form part of the new directive?

Mr Doherty: It appears to. It is a new measuring instrument. Essentially, it is akin to a petrol pump for compressed gas. Again, these are emerging technologies and sustainable energy sources. I cannot answer on the specific technical side, because, again, it is outside the scope of Trading Standards' measuring instruments, but we can take your question back to the Office for Product Safety and Standards, which will be able to give us more information.

Mr Martin: I have one more quick question, Chair, if I may, on departmental engagement. I will see whether I can find the relevant document. It is on page 4 of the ministerial submission. It refers to the Department for Infrastructure, which DFE has consulted. DFI has more or less said that it is not overly interested. Although it is moving towards decarbonisation, it does not:

which, I presume, is from where the electricity comes. The ministerial submission further states:

What direct consultation have you undertaken with colleagues in DFI on the point that I have just made?

Mr McGregor: We have engaged with DFI throughout the process to make it aware of what the directive is and the areas that it covers and to identify whether it had any form of policy interest, given the transport nature of electric vehicle charging. The Department has stated that that aspect of the policy is not within its remit. The electricity getting to the meter falls to the energy side, while product regulation falls to the Office for Product Safety and Standards, so DFI's interest in the electric vehicle market is not impacted on by the directive. That was an indication of its trying to be clear that it does not have a responsibility in the area. Only DFE is to be to consulted.

Mr Martin: Thank you very much, gentlemen.

Mr Buckley: Peter largely covered what I was going to ask. The UK Government previously said that they would consult on making similar changes, as you have outlined, but they did not cover all proposals included in the directive. Do you therefore have an update on the current state of play?

Mr McGregor: No, we have not seen an outline text of a consultation. All that we know is that they intend to launch the consultation shortly and that it is to run for 12 weeks. In such instances, what would normally happen is that a copy would be shared with us in advance, and we would be asked whether we wanted to add anything or expand on any of the questions in it. However, we have not yet seen any of the detail. The OPSS will prepare that.

Mr Buckley: OK. The last time that you guys appeared before the Committee on this, you were not able to answer many of the questions. Obviously, it was with the Department for Business and Trade to give more specifics, and it has since provided a submission. When I look at your original answers and at the written answers now supplied, there is the same issue with language like, "We hope to potentially align on this matter. We are going out for a call for evidence that will show whether there are any issues". As somebody who has to make a decision today, that is not much good to me. The call for evidence could produce evidence to suggest that it will cause problems in particular parts of industry in Northern Ireland or for the consumer, but I will have already made the decision; therefore, it does not really matter. I want to point out that particular flaw: a call for evidence to show how it disrupts GB-NI trade and detail how that might have an impact on the consumer chain from GB to NI is not much good to me after the fact of making a decision. That is not your problem, but I wanted to highlight it. Thank you.

The Chairperson (Ms Ferguson): Thank you, Jonathan.

Mr McGregor: I will comment on that. There may be value, at some points, in the Department's revisiting these matters for you, given that there are areas on which we have given such reassurances in the past — I am thinking of design and energy efficiency — but can now see that the consultation has completed and secondary legislation is being made, so the UK Government are delivering on their commitments. I wonder whether their occasionally sharing those outcomes would be reassuring to members.

Mr Buckley: That would be helpful, particularly where it has worked out, but there always is the risk. As a Committee member, I am proceeding at risk in taking the UK Government at their word that they will do as they say. They have not done so in times past. I am not guaranteed that that will happen in the future, and there is no telling whether there may be issues that arise between a decision being made at this Committee and something going through without particular care and consideration. Ultimately, then, there is no ability to change track or decision.

The Chairperson (Ms Ferguson): OK. There are no other final questions. Thank you, Mark, for that offer. I am sure that members would appreciate even an update. It is not our role — it is about implementation — but it would be useful for members. Thank you for that.

On behalf of the Committee, I thank Damien and Mark for their presentation and wish them both a lovely Easter. Thank you.

Mr Doherty: You too.

Mr McGregor: You too. Bye-bye.