ARCHIVED — Steam and Thermal Energy Trade Sector Review — Discussion Paper

Discussion Paper
Establishing an Appropriate Level of
Measurement Canada Involvement in the Sector

January 2010

A message from the president

In order to best accomplish our mission of ensuring equitable and accurate measurement of goods and services, Measurement Canada is conducting trade sector reviews. Through these reviews, Measurement Canada hopes to identify trade sectors where direct intervention is necessary to ensure the accurate measurement of goods and services and other sectors where less intervention is possible with reasonable risk to the parties involved in the measurement transaction. This will allow us to focus our resources on those areas which provide the greatest return for Canadians.

Client, business and consumer views, opinions and perspectives will be used to determine the level of intervention in any particular trade sector. Levels of intervention may range from direct inspection through organizations recognized by Measurement Canada, to industry self regulation. Measurement Canada will maintain oversight of measurement accuracy and equity through regular monitoring of the sectors to ensure the intervention levels are appropriate and operating effectively.

The steam and thermal energy review team has been created to establish, in consultation with clients, business and consumers, the appropriate level of intervention for this sector and to explore possible alternative service delivery mechanisms. Steam and thermal energy marketplace participants are invited to inform themselves of the issues in this discussion paper.

As a participant in the steam and thermal energy trade sector, you are encouraged to actively participate in these consultations. This is your opportunity to have your views heard and to influence the manner in which the accurate measurement of goods and services is achieved in your sector.

Alan E. Johnston
President, Measurement Canada

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Table of Contents

• 1.0 Introduction
• 2.0 Executive summary
• 3.0 Industry Overview
  • 3.1 Sector description
  • 3.2 Measurement control/industry practices
  • 3.3 Inspections compared to calibrations or "checks"
• 4.0 Draft recommendations
  
  • 4.1 Approvals
  • 4.2 Initial inspections
  • 4.3 Periodic (subsequent) inspections
  • 4.4 Physical test standards
  • 4.5 Net quantity (commodity) inspections
  • 4.6 Complaints
  • 4.7 Monitoring
  • 4.8 Future sector reviews
• 5.0 Criteria for final decisions
• Appendix I - Trade sector review team contacts
• Appendix II - Current Measurement Canada services
• Appendix III - Comparison of the Accreditation and Registration Programs for device inspections
• Appendix IV - Other countries’ trade measurement services
• Appendix V - Steam and thermal energy compliance reports for the period of 2003 - 2008
• Appendix VI - Glossary of terms

1.0 Introduction

In trade sectors where Measurement Canada is actively involved, its mission is currently accomplished through several key programs, described in detail in Appendix II.

Historically, these programs have been implemented exclusively by Measurement Canada in an attempt to establish and maintain fairness and measurement accuracy. However, with device numbers increasing and measurement technology constantly evolving, Measurement Canada is increasingly challenged to fulfill its stated mission in these trade sectors.

Consequently, Measurement Canada has established a strategic direction that is designed to optimize the use of its resources in fulfilling its mission and to be responsive to the needs of the stakeholders in all trade sectors.

As part of its strategic direction, Measurement Canada will continue to:

• establish rules and requirements for trade measurement,
• investigate measurement complaints,
• monitor the marketplace, and
• where necessary, take action to ensure appropriate levels of compliance.

Measurement Canada will utilize alternative service delivery mechanisms, whenever possible, for the following services, if they are determined to be necessary to the sector:

• calibration of measurement standards
• device approvals
• initial inspection and certification of devices
• subsequent inspection or periodic certification of devices

The primary purpose of the Steam and Thermal Energy Trade Sector Review, is to determine, based on stakeholders’ informed views, the needed level of involvement by Measurement Canada to ensure fairness and accuracy in trade measurement. This will be an opportunity for stakeholders, especially vulnerable parties, to express their views and to provide input into the final recommendations.

This report explains the review project, summarizes the initial comments obtained to date from clients on this project and proposes a level of involvement for Measurement Canada in the sector. It will serve as a platform for further discussion during the multi-stakeholder consensus meetings which, if requested, are expected to take place in February or March 2010.

2.0 Executive summary

Over the past several months, the trade sector review team has contacted various stakeholders and associations in the steam and thermal energy industry to inform them about Measurement Canada and its measurement programs. The team also introduced stakeholders to the trade sector review and obtained their views on the state of the industry and its measurement needs.

The majority of stakeholders, industrial, commercial, institutional and residential, have indicated that Measurement Canada should become active in the steam and thermal energy industry with programs to maintain measurement accuracy and fairness. The majority of stakeholders have requested mandatory approval of devices, and initial inspections.

Stakeholders have requested mandatory periodic inspections with inspection periods ranging from 1 to 5 years depending on the device type. All inspections are to be performed using certified and traceable physical test standards. Stakeholders support the use of alternative service delivery, such as the accreditation and registration programs, as long as there is no excessive cost to the industry and that Measurement Canada retains overall responsibility for these programs.

Stakeholders want Measurement Canada to investigate complaints when requested. They have also indicated that they want Measurement Canada to monitor this sector to ensure equity in trade and to perform future sector reviews to ensure confidence in the marketplace.

Measurement Canada has not been involved in the steam and thermal energy sector in the past and the Agency currently does not have the expertise and equipment in place to implement the recommendations proposed in this document. Once the final recommendations are established, Measurement Canada will determine if it can become involved in this sector in the manner recommended by stakeholders.

If requested, the draft recommendations in this document will be discussed further and finalized during the multi-stakeholder consensus meetings during the winter of 2010. Stakeholders are encouraged to continue to send any measurement related comments or concerns to the review team before the end of February 2010 so that they may be considered for inclusion in the final recommendations.

Stakeholder wanting to attend a regional multi-stakeholder meeting to discuss the draft recommendations are requested to contact their regional Measurement Canada Trade Sector Review representative listed in Appendix I by February 15, 2010.

For those using electronic copies of this document links have been provided below to allow for easy access to specific sections of this document containing the detailed draft recommendations.

Approvals

1. Measurement Canada should require type approval for all measuring devices used for trade in this sector, with no exceptions.
2. Measurement Canada should harmonize approval requirements with international standards such as the International Organization of Legal Metrology (OIML) recommendations (see Appendix IV for a description of OIML).
3. Approval testing should be conducted by organizations that meet a formal Measurement Canada alternative service delivery program, with the final approvals issued by Measurement Canada.
4. Measurement Canada should implement a formal recognition program for other countries’ type approval processes of trade devices in this sector, with final device approval issued by Measurement Canada.
5. Measurement Canada should expand mutual acceptance agreements with other countries for approval testing.

Initial Inspections

1. Measurement Canada should require mandatory initial inspections for measuring devices used for trade in this sector, with no exceptions.
2. Organizations other than Measurement Canada should be allowed to perform initial inspections, provided they are authorized under the Measurement Canada accreditation or registration program requirements.
3. A certificate is to be provided to device owners and a certification sticker affixed to devices, upon passing initial inspection, showing the date of inspection.
4. Device tolerances should be as per EN 1434 (CSA C900) in the short term, but tolerances should be aligned, where possible, to International Organization for Legal Metrology R75 requirements, within the next ten years.

Periodic (subsequent) inspections

1. Measurement Canada should require 5 year mandatory periodic inspections for trade devices used in this sector, with no exceptions.
2. Periodic inspections should be performed by authorized service providers that meet the established requirements of either the Measurement Canada accreditation or registration program.
3. A voluntary program for periodic inspections should be implemented in the sector until legislative changes can be made.
4. Should periodic inspections become mandatory, an inspection expiry date is to be shown on the certificate and certification sticker.
5. Device tolerances should be as per the EN1434 (CSA C900) standard in the short term, but tolerances should be aligned, where possible, to International Organization for Legal Metrology R75 requirements, within the next ten years.

Physical test standards

1. All physical test standards used by Measurement Canada inspectors and authorized service providers for inspections, should be certified according to the schedule in the Weights and Measures Regulations.
2. Physical test standards should be certified either by Measurement Canada or by a recognized laboratory that meets Measurement Canada’s alternative service delivery requirements.

Net quantity (commodity) inspections

1. Measurement Canada should not perform net quantity (commodity) inspections in this sector.

Complaints

1. Measurement Canada should provide complaint investigation and inspection services for this sector, but only after the two parties have had the opportunity to resolve the issue first.
2. Measurement Canada should publicize its role as an investigator of trade measurement complaints in this sector.
3. Measurement Canada’s legislation should allow for the full disclosure of complaint inspection information to the two parties of the transaction.
4. Measurement Canada should use tickets or fines along with other forms of enforcement if the investigations and the inspections indicate that the requirements of the Weights and Measures Act are not met.

Monitoring

1. Measurement Canada should monitor this sector by compiling compliance data on devices, by retaining complaint investigation results and by soliciting stakeholder feedback/input and disseminate this information in aggregate form on a yearly basis.

Future sector reviews

1. Future trade sector reviews should be conducted if there is a significant reduction in compliance rates, there are major changes in the industry that can have an impact on measurement accuracy or stakeholders indicate that there is a lack of confidence in measurement accuracy.

3.0 Industry Overview

The steam and thermal energy sector, although relatively small, is a rapidly growing sector in the Canadian economy. The rapid growth in this sector is due to increasing energy costs and environmental concerns. Heat energy via hot water or steam pipes is often produced, transported and sold by what is commonly referred to as a district heating system. In other cases, surplus steam and heat produced during power generation and industrial processes, often wasted in the past, are being recovered and sold to other users.

Heat sources for district heating systems can be geothermal heat, solar heat, surplus heat from industrial processes, and nuclear power. The principles for a conventional combination of co-generation and district heating applies the same for nuclear as it does for a thermal power station.

The opposite of district heating is district cooling. Working on broadly similar principles to district heating, district cooling delivers chilled water to buildings like offices and factories needing cooling.

Canada lags other countries in district heating systems, particularly countries in Europe. In Denmark, for example, district heating covers more than 60% of space heating and water heating. In 2007, 80.5% of this heat was produced on combined heat and power plants (co-generation). Heat recovered from waste incineration accounted for 20.4% of the total Danish district heat production. Most major cities in Denmark have big district heating networks including transmission networks operation with up to 125°C and 25 bar pressure and distribution networks operating with up to 95°C and between 6 and 10 bar pressure.

In the US, Consolidated Edison of New York (Con Ed) operates Con Edison Steam Operations, the largest commercial district heating system in the world. The system has operated continuously since March 1882 and serves Manhattan Island from the Battery through 96th Street. NRG Energy operates district systems in major cities of San Francisco, Harrisburg, Minneapolis, Pittsburgh and San Diego. Seattle Steam Company operates a district system in Seattle. Detroit Edison operates a district system in Detroit.

District heating is also used on many college campuses most notably the University of Notre Dame which produces over half its own electricity and all of its heating needs from the same plant. Cornell University's Lake Source Cooling System uses Cayuga Lake as a heat sink to operate the central chilled water system for its campus and to also provide cooling to the Ithaca City School District. The system has operated since the summer of 2000 and was built at a cost of $55–60 million. It has a cooling capacity of 14,500 tons.

As stated above, district heating is a growing industry in Canada, with many new systems being built in the last ten years.

Many Canadian universities, like Dalhousie University in Halifax, operate central campus heating plants. Dartmouth has a district heating system that uses geo-thermal heat as its source and sells the heat to several downtown buildings. Montreal has a district heating and cooling system in the downtown core.

Toronto’s Enwave provides district heating and cooling to around 100 customers within the downtown core of Toronto, including deep lake cooling technology, which circulates cold water from Lake Ontario through heat exchangers to provide cooling for buildings in the city. Windsor has a district heating and cooling system in the downtown core as well. London, Cornwall and Markham operate a district heating systems that serve commercial and residential buildings. In Sudbury, a district energy loop is available for some commercial buildings as well as municipal offices. A method of recovering industrial and residential heat from sewer waste via under ground service pipes is also in the development stage. Ottawa has two district heating systems that supply hot water heating to government owned buildings in the city.

Calgary’s ENMAX is currently building its Calgary Downtown District Energy Centre which will provide heating to up to 10 million square feet of new and existing residential and commercial buildings. Construction of the Calgary Downtown District Energy Centre has begun with commercial operation anticipated for late 2009. Drake Landing in Alberta is small heat distribution system, serving 52 homes, but is notable for being the only central solar heating system in North America. In Edmonton, apartment owners have installed heat monitoring devices to allocate hot water heating costs to individual tenants.

Vancouver’s Central Heat Distribution Ltd. operates a central heating plant in the downtown core. A large scale district heating system is currently being constructed in South East False Creek in the downtown Vancouver core that will serve many new developments being constructed, including the 2010 Olympic Village. A large portion of the heating demand for this system will come from an innovative sewer heat recovery system, which will greatly reduce greenhouse gas emissions. The city of North Vancouver provides heating services to commercial buildings in the cities downtown.

Lastly, petrochemical plants in cities like Sarnia and Edmonton sell their excess steam to neighbouring industrial plants for their use.

3.1 Sector description

The steam and thermal energy sector is made up of three distinct sub-sectors: industrial, commercial/institutional, and residential.

The industrial sub-sector consists of producers of steam and processors of raw materials that require heat and steam for their production processes. Also included are co-generation facilities that produce electricity and capture the waste heat produced during the generation process.

The commercial/institutional sub-sector includes district heating (energy) systems and their customers. Their costumers are often hospitals, government and municipal facilities, universities and educational institutions, tenants in shopping malls, building complexes where heating and/or cooling is provided by a central plant.

The residential sub-sector consists of district heating (energy) systems including utilities that operate and maintain heating systems as well as property management companies that produce heat for resale to their tenants. The consumers can be private homes, apartments and condominiums. Heat is generally provided as a liquid and is transferred into the dwelling by means of a heat exchanger. In most cases, measurements are taken of the amount of liquid as well as the change in temperature as the liquid passes through the heat exchanger. These measurements are used to calculate the amount of heat consumed.

In some cases, an energy monitoring system (EMS) is used to allocate the hot water heat used in individual apartments or condominiums. The temperature of the liquid is measured and the length of time the liquid flows through the heat exchanger are used to calculate the units portion of the heat used to heat a complex. (See Appendix VI for more information on EMSs)

This review does not include potable water as this sector has previously been reviewed by Measurement Canada.

3.2 Measurement control/industry practices

Measurement Canada has little history of intervention in this trade sector. The industry uses a moderate range of volume trade devices, such as orifice plates, vortex, turbine, flow meters and condensate devices to control sales and ensure purchases are correct. Devices such as orifice and condensate meters are most often used in industrial applications where as flow meters are often used in commercial/institutional and residential applications. In the residential sub-sector energy monitoring system (EMSs) are also being used.

Measurement Canada is not actively involved in this sector and for that reason no previous inspection results nor compliance rates are available. From initial consultations, it appears owners often buy steam and thermal energy trade devices manufactured outside Canada and many of these devices come with formal approvals from those countries. Device owners employ industry experts to install them at their measurement locations. In some cases, device owners will have periodic inspections performed to ensure they continue to measure accurately over their service life. In many cases, the trade devices in this sector are calibrated periodically due to company policy or device history. In other cases, the devices are left in service till there are concerns about their accuracy or they are removed from service.

Flow meters tend to be calibrated less frequently compared to orifice or condensate meters. This has been reflected in the feedback received from stakeholders as to when they would want periodic inspections conducted, if required. Device calibration services for this sector are available in Canada, but are not currently prevalent.

3.3 Inspections compared to calibrations or “checks”

Inspections, calibrations and checks are three different methods used to determine how well a measuring device is functioning. This section explains the differences between these terms and the level of assurance they provide.

For the purposes of this review:
An inspection is an in-depth examination of a measuring device, using Measurement Canada accepted procedures, by either a Measurement Canada inspector or by an Authorized Service Provider (accredited or registered company), to verify that it meets all the requirements of the Weights and Measures Act and Regulations. During this examination, the following are tested:

• the device’s accuracy is tested with certified test standards, using prescribed limits of error (tolerances) over the working range of the device
• product tests were necessary and practical
• the required markings
• the device settings that can affect accuracy (i.e., zero, tare, installation, etc.); and
• the accurate functioning of attached equipment such as printers, electronic read outs (indicators), or computers.

If the device passes the inspection, it is sealed to prevent tampering (electronic scales or meters), an inspection sticker is affixed to the device and an inspection certificate is issued. Examples of stickers and seals that are used after a device passes an inspection are shown in Figure 1.

Stakeholders sometimes refer to "calibration" as a test and adjustment (if necessary) of the accuracy of the device, and can be done with certified or non-certified test standards. Measurement Canada inspectors are not authorized to calibrate devices. A calibration can be done by any service/repair company or any employee as long as Measurement Canada is notified if the seals are broken during the calibration of the device. There are no requirements to use a recognized test procedure.

A device check is done by many device owners to identify possible measurement problems. For example, to check a heat meter, readings can be taken and the results compared with previous readings (trends), visual checks of the meter and piping can also be made. This may help to identify measuring problems, but is not a reliable indicator of the device's accuracy.

Figure 1 - Examples of Inspection Stickers and Seals used on Certified Devices

Certification Stickers - applied to an inspected device meeting all the requirements of the Weights & Measures legislation

4.0 Draft recommendations

This section of the paper describes some of the issues related to the different measurement programs, the draft recommendations that were derived from stakeholder feedback, some considerations either supporting or opposing the proposals and a summary of the different positions taken by stakeholders. For the sake of comparison, Appendix IV shows the measurement programs used in other countries and their methods of delivery.

It should be noted that the feedback from stakeholders in all three sub-sectors: the industrial sub-sector, the commercial and institutional sub-sector and the residential sector indicated similar feedback supporting the draft recommendations below.

4.1 Approvals

The term approval is used to define a formal process where a prototype of a measuring device is evaluated for compliance with legislated requirements to ensure that it is capable of measuring accurately under normal conditions of use and throughout its service lifetime. Usually, this process must be undertaken before a device can be used in trade. This process may also be referred to as “type approval” or “pattern approval.”

Historically, Measurement Canada has not conducted approval testing in this sector, but does perform approval testing and issuing of type approvals in other sectors. In some sectors Measurement Canada has Mutual Acceptance Arrangement (MAAs) with member countries of the International Organization of Legal Metrology (OIML) for recognition of test results. Mutual Acceptance Arrangements allow for participating countries to utilize test reports from other countries in their own approval process.

For a few device types, Measurement Canada has signed a Mutual Recognition Arrangement (MRA) with the US for the recognition of type approval evaluations done in the US.

As with most industrialized countries, Canada is a member of the International Organization of Legal Metrology (OIML), an organization created to promote the global harmonization of legal metrology standards. Measurement Canada participates on some of OIML’s technical committees to develop international requirements for measuring devices.

Issues (discussion points)

1. Are there any exceptions to requiring an approval of all trade measurement devices in this sector?
2. Are there concerns with organizations outside Canada being used for approval testing?
3. Should mutual recognition programs between Canada and other countries be expanded?

Draft recommendations

4.1.1 Measurement Canada should require type approval for all measuring devices used for trade in this sector, with no exceptions.

4.1.2 Measurement Canada should harmonize approval requirements with international standards such as the International Organization of Legal Metrology (OIML) recommendations (see Appendix IV for a description of OIML).

4.1.3 Approval testing should be conducted by organizations that meet a formal Measurement Canada alternative service delivery program, with the final approvals issued by Measurement Canada.

4.1.4 Measurement Canada should implement a formal recognition program for other countries’ type approval processes of trade devices in this sector, with final device approval issued by Measurement Canada.

4.1.5 Measurement Canada should expand mutual acceptance agreements with other countries for approval testing.

Rationale/discussion

Initial inspections only ensure devices measure accurately under the particular conditions and location at the time of testing, however, type approval process ensures devices of certain types are capable of measuring accurately throughout their service life and under varying conditions.

There are several benefits to the Mutual Acceptance Arrangement program, for instance, they allow OIML member countries to rely on the facilities and competencies of other member countries for test results, thus reducing barriers to trade and competitiveness. The Mutual Acceptance Arrangement works to reduce duplication in testing and allows for a quicker turnaround on measuring device approvals.

Many of the devices in this sector are manufactured in European countries such as Belgium, Denmark, Germany and the UK and have been approved for use through their recognized programs.

Harmonizing approval requirements and accepting other countries’ approvals may reduce the amount of control that Measurement Canada would otherwise have on a type approval evaluation.

Stakeholders’ feedback

Most stakeholders indicated little concern with organizations outside Canada being authorized to perform approval testing provided Measurement Canada has a formal program in place.

Most stakeholders would like to maintain the mandatory approval requirement and support the idea of harmonizing the approval requirements so that they are in line with international standards.

Most stakeholders believe that approvals are necessary and that the initial inspection should be used to determine if the device meets specifications in the user environment and performs the selected application correctly.

The majority of stakeholders would accept other countries’ approvals providing the approvals meet Measurement Canada requirements and that these requirements should take into account environmental conditions in Canada.

There were a few stakeholders who felt that Measurement Canada should maintain its own approval requirements and furthermore should only accept Canadian approvals.

4.2 Initial inspections

An initial inspection is the first inspection or certification of each measuring device before it may be placed into trade service. This inspection is currently mandatory in many sectors and ensures that the device is approved, installed correctly and measuring accurately within the limits of error (tolerance) set out in the Weights and Measures legislation. Measurement Canada’s programs do not currently include initial inspections in this sector. However, many device owners have calibration tests performed prior to the installation of their devices.

There are several documented standards that apply to devices in this sector. The European standard EN1434, Canadian Standards Association (CSA) C900 and the International Organization for Legal Metrology (OIML) R75.

Issues (discussion points)

1. Should there be exceptions to all measuring devices in this sector requiring initial inspections?
2. Are there concerns with using either the accreditation or registration programs for initial inspections? (See Appendix III for a description of these programs)

Draft recommendations

4.2.1. Measurement Canada should require mandatory initial inspections for measuring devices used for trade in this sector, with no exceptions.

4.2.2 Organizations other than Measurement Canada should be allowed to perform initial inspections, provided they are authorized under the Measurement Canada accreditation or registration program requirements.

4.2.3 A certificate is to be provided to device owners and a certification sticker affixed to devices, upon passing initial inspection, showing the date of inspection.

4.2.4 Device tolerances should be as per EN 1434 (CSA C900) in the short term, but tolerances should be aligned, where possible, to International Organization for Legal Metrology R75 requirements, within the next ten years.

Rationale/discussion

The accreditation program has the added protection of a quality system, but both programs have formal training, evaluation and monitoring.

Initial inspections ensure that the devices used in trade are the same as the model that was approved, the installation is correct and the devices meet the requirements of the Weights and Measures legislation.

Accredited or registered companies are able to install, calibrate, inspect and certify the devices. The companies must qualify for these programs and their recognized technicians are monitored on an ongoing basis by Measurement Canada. They are therefore able to reduce the amount of time and costs needed for initial inspections. (See Appendix III for the qualification requirements and the monitoring for the accreditation and registration programs)

Stakeholders’ feedback

The vast majority of stakeholders feel that initial inspections are needed in order to provide assurance that the device meets the approval requirements and is properly installed and measuring accurately. They feel that initial inspection is the preferred method of performance confirmation.

Stakeholders have shown only a slight preference for the accreditation program and therefore either the accreditation or registration programs are considered acceptable.

Most stakeholders feel that the inspections could be performed by authorized service providers, preferably an accredited company, as long as there are no excessive costs to the stakeholders.

4.3 Periodic (subsequent) inspections

Periodic inspections are performed on a device after it has been initially inspected and used in trade. These inspections ensure that the device continues to measure accurately within the applicable limits of error (tolerance). As with initial inspections, Measurement Canada’s programs do not include periodic inspections of devices in this sector, however some device owners do perform periodic calibration testing.

Issues (discussion points)

1. Should there be exceptions to all devices requiring periodic inspections? If yes, what should the frequency of inspections be? Are there any exceptions?
2. Are the time periods for periodic inspections acceptable?
3. Are there concerns with using either the accreditation or registration programs for periodic inspections? (See Appendix III for a description of these programs)
4. Would mandatory periodic inspections create significant additional cost to the industry and would the benefits of mandatory periodic inspections justify the additional cost to the stakeholders in the industry?
5. In order to have a mandatory periodic inspection period, the Weights and Measures Act would have to be amended. This process could take several years. In the interim, would a voluntary periodic certification (subsequent inspection) program be acceptable and what could be done to make a voluntary periodic program successful? (See Appendix II for a description of the voluntary periodic certification program)

Draft recommendations

4.3.1 Measurement Canada should require 5 year mandatory periodic inspections for trade devices used in this sector, with no exceptions.

4.3.2 Periodic inspections should be performed by authorized service providers that meet the established requirements of either the Measurement Canada accreditation or registration program.

4.3.3 A voluntary program for periodic inspections should be implemented in the sector until legislative changes can be made.

4.3.4 Should periodic inspections become mandatory, an inspection expiry date is to be shown on the certificate and certification sticker.

4.3.5 Device tolerances should be as per the EN1434 (CSA C900) standard in the short term, but tolerances should be aligned, where possible, to International Organization for Legal Metrology R75 requirements, within the next ten years.

Rationale/discussion

The time for legislative changes for a mandatory inspection program can be lengthy and although a voluntary program could be put in place, device owners may opt out of this program at anytime.

Inspections involve more in depth testing than calibrations or checks. Therefore, they are more likely to detect measurement problems and incorrect device settings, installations or usage.

Device errors over a long period of time could be costly for one of the trading parties and could damage the reputation of companies as well as the sector.

There will be additional costs to the device owners for inspecting the devices through authorized service providers. Stakeholders will have to decide if the benefits of having the devices inspected periodically is worth the additional costs.

Measurement Canada inspectors do not have the authority to calibrate or repair trade devices. Therefore, use of authorized service providers will allow the devices to be adjusted if there are any measurement problems found during the inspection.

Having the device inspections done by authorized service providers will allow Measurement Canada’s resources to focus inspections in problem areas and to monitor the performance of the steam and thermal energy sector.

Stakeholders’ feedback

The majority of stakeholders feel that mandatory periodic inspections are required, and prefer a 1 to a 5 year inspection period depending on device type.

Some companies feel that they already have quality systems in place, have calibrations done at least once per year by device service/repair companies and therefore do not feel that mandatory periodic inspections provide any additional benefits to them or their clients.

A slight majority of stakeholders prefer to use the accreditation program for device inspections because they believe that the requirement for a quality system adds additional assurance that the inspections are conducted at an appropriate level.

Most stakeholders support a voluntary periodic certification program and believe that it could be successful if the program is not too bureaucratic and costly for stakeholders, if Measurement Canada explains the benefits to stakeholders and then publishes the name of companies participating in the program.

4.4 Physical test standards

Test standards for device inspections in most other trade sectors are certified by Measurement Canada according to the schedule shown in section 56 of the Weights and Measures Regulations. Standards are referenced to a national standard which is held by the National Research Council of Canada (NRC). Currently Measurement Canada does not have equipment designated as physical test standards for use in this sector. However, it is possible that test standards used in other sectors could be used to inspect some devices in this sector.

Measurement Canada has established and implemented an alternative service delivery program where test standards used for inspections can be certified by Measurement Canada based on test results from recognized calibration laboratories.

Issues (discussion points)

1. Should all physical test standards used for inspections be certified and traceable to national or international standards?
2. Should Measurement Canada be responsible for certifying all standards used for inspections? Are there any exceptions to the certification of physical test standard used for inspection purposes?
3. Are alternative service delivery programs acceptable for calibration of test standards in this sector?
4. Should the calibration periods recommended be applicable to all test standards?

Draft recommendations

4.4.1 All physical test standards used by Measurement Canada inspectors and authorized service providers for inspections, should be certified according to the schedule in the Weights and Measures Regulations.

4.4.2 Physical test standards should be certified either by Measurement Canada or by a recognized laboratory that meets Measurement Canada’s alternative service delivery requirements.

Rationale/discussion

There are existing test standards used in the natural gas sector and that could be used in this sector.

Test standards that have a current certificate of calibration traceable to national or international standards provide confidence in inspection results.

Use of other calibration organizations could provide some alternatives for inspectors and authorized service providers, and may reduce the time needed to certify test standards.

Use of other calibration organizations, even under an alternative service delivery program, could reduce some of Measurement Canada’s control of test standards.

Stakeholders’ feedback

The vast majority of stakeholders have indicated that they want test standards that are used for inspections to be certified and traceable to international standards.

Most stakeholders would accept an alternative service delivery program that allows other organizations to certify test standards, as long as there are sufficient controls to ensure the standards are correctly certified, at the same level as Measurement Canada laboratories, and if there is no excessive cost to the industry.

4.5 Net quantity (commodity) inspections

Since commodities are not sold in packages in this sector, net quantity inspections do not apply to this trade sector.

Issues (discussion points)

None

Draft recommendations

4.5.1 Measurement Canada should not perform net quantity (commodity) inspections in this sector.

Rationale/discussion

There are no packaged steam or thermal energy products bought or sold in this sector.

Stakeholders’ feedback

Stakeholder input was not requested.

4.6 Complaints

Buyers and sellers of goods and services who suspect they have received inaccurate measurement and who have been unable to resolve their concern with the other party to the transaction may contact the nearest Measurement Canada office and request that their complaint be investigated.

Measurement complaints received by Measurement Canada are investigated by its inspectors and if necessary, devices or commodities are inspected. The complainant is then informed as to whether the device, product or service meets the requirements of the Weights and Measures Act. If an inspection indicates that the measuring device or the commodity does not meet legislated requirements, then enforcement actions such as rejection, seizure, warnings, etc., may be taken.

Measurement Canada does not have the authority to compel the device owner or the complainant to provide compensation even if the complaint is justified.

In 2008, a total of 467 weights and measures complaints were made. Of these 104 (22%) were found to be valid and 363 (78%) had no basis and the remaining 16 (3%) were still under investigation at the end of 2008. In 2008, one steam and thermal energy sector complaint was received on behalf of a group of residential consumers and it remains under investigation.

Issues (discussion points)

1. Are complaints currently being resolved satisfactorily in this sector?
2. Are stakeholders aware that Measurement Canada is required to investigate measurement complaints and that Measurement Canada is available as an independent party to conduct an investigation that may help resolve the complaint?
3. Should Measurement Canada be able to provide details of the results of an investigation or inspections to the complainant?
4. Should Measurement Canada use tickets and fines as a form of enforcement?

Draft recommendations

4.6.1 Measurement Canada should provide complaint investigation and inspection services for this sector, but only after the two parties have had the opportunity to resolve the issue first.

4.6.2. Measurement Canada should publicize its role as an investigator of trade measurement complaints in this sector.

4.6.3 Measurement Canada’s legislation should allow for the full disclosure of complaint inspection information to the two parties of the transaction.

4.6.4 Measurement Canada should use tickets or fines along with other forms of enforcement if the investigations and the inspections indicate that the requirements of the Weights and Measures Act are not met.

Rationale/discussion

Current access to information legislation prohibits Measurement Canada from providing details of the results of the inspection to the complainant without the permission of the device owner. Legislative changes may be required to give Measurement Canada the authority to provide details of inspection results.

Stakeholders’ feedback

The majority of stakeholders have indicated that any measurement complaints should be resolved between the parties involved.

The majority of stakeholders indicated Measurement Canada should continue to be available as an independent third party where a resolution cannot be reached between the two parties involved.

A majority of stakeholders want Measurement Canada to provide measurement related information that will help the parties to resolve the complaint on their own.

Stakeholders have indicated that they support the disclosure of complaint inspection results to the complainant.

4.7 Monitoring

Measurement Canada monitors different sectors through random device inspections, net quantity inspections, and compiles measurement related data on the trade measuring devices and establishments. This information allows Measurement Canada to determine the level of measurement accuracy in each sector and to plan its inspection programs. Currently, Measurement Canada’s monitoring program does not include this sector.

Issues (discussion points)

1. Are there other performance indicators that need to be considered?
2. Who should have access to this information?
3. How is this information to be disclosed?
4. What is a reasonable compliance rate to use as a bench mark?

Draft recommendations

4.7.1 Measurement Canada should monitor this sector by compiling compliance data on devices, by retaining complaint investigation results and by soliciting stakeholder feedback/input and disseminate this information in aggregate form on a yearly basis.

Rationale/discussion

Ongoing monitoring will be needed to determine the effectiveness of the implemented recommendations.

Stakeholders’ feedback

Stakeholders indicated that they want to know the status of their trade sector, but did not want to be inundated with unnecessary documents and emails.

4.8 Future sector reviews

Measurement Canada has identified 39 different sectors and plans to conduct reviews in each sector. Once the initial review is completed in each sector, additional reviews will be conducted only as needed.

Issues (discussion points)

1. Are there other factors that should be used to initiate a sector review?

Draft recommendations

4.8.1 Future trade sector reviews should be conducted if there is a significant reduction in compliance rates, there are major changes in the industry that can have an impact on measurement accuracy or stakeholders indicate that there is a lack of confidence in measurement accuracy.

Rationale/discussion

Trade sector reviews give stakeholders an opportunity to provide input in the way in which trade measurement is regulated in their sector.

Trade sector reviews take a lot of time and resources from Measurement Canada and from stakeholders, therefore they should be held only if there is a need or benefit to the sector and to Measurement Canada.

Stakeholders’ feedback

Most stakeholders indicated that further reviews should be conducted.

The majority of stakeholders feel that a review should be conducted if there is a significant decrease in the device compliance rate, if Measurement Canada’s monitoring indicates that there are measurement problems in the industry or if stakeholders express a loss of confidence in measurement accuracy.

5.0 Criteria for final decisions

During the consultation process, Measurement Canada will strive to reach consensus among the stakeholders in the steam and thermal energy sector in order to establish the appropriate level of involvement for Measurement Canada. Decisions regarding the appropriate level of involvement must be determined based on the input from all parties to the trade transaction.

The following criteria will be used to formulate decisions during the consultation process:

1. Stakeholder support - All stakeholders involved in the consultation are encouraged to actively participate to the degree possible, however, certain conditions must be established:

• all stakeholders must be informed of the issues for discussion,
• there must be general agreement from all stakeholders on all recommendations,
• preferred weighting will be given to stakeholders in trade transactions, especially the vulnerable parties,
• general support from third party (those who are not directly involved in the trade transaction),
• those stakeholders who express dissenting opinions during the consultation will have their opinions recorded for future reference.

2. Stakeholder representation - Measurement Canada will seek to ensure that the stakeholders who participate in the consultation are representative of the sector. All affected parties must be adequately represented during discussions and all informed comments will be considered.

3. Consistent with Measurement Canada’s mission and strategic direction - all decisions reached during the consultation must agree with Measurement Canada’s mission and strategic direction. The use of viable alternative service delivery options are to be actively explored and implemented in areas where the sector stakeholders believe it is appropriate.

4. Sustainable - The recommendations must be able to be implemented and sustainable on an ongoing basis. All recommendations must be cost effective for both Measurement Canada and industry and should not suppress the emergence of new technology.

5. International competitiveness - The recommendations must be both practical and consistent with international metrology (measurement) standards and practices and must not adversely impact Canada’s image and competitiveness in international markets.

6. Measurement Canada acceptance

The final recommendations will be determined by consensus among all sector stakeholders.

All recommendations from the Steam and Thermal Energy Trade Sector Review are subject to review and acceptance by Measurement Canada’s Senior Management Committee (SMC).

7. Timetable

The recommendations are scheduled to be presented to the SMC by May 2010.

Appendix I Trade sector review team contacts

The members of the Steam and Thermal Energy Trade Sector Review team are:

Team leader:

Sam Stouros
Standards Building
Phone: (613) 952-2627
Fax. : (613) 952-8013
E-mail: sam.stouros@ic.gc.ca

Regional members:

Eastern region

Matthieu Parent
Phone: (514) 283-6566
Fax: (514) 283-1864
E-mail: matthieu.parent@ic.gc.ca

Western region

Don Maxwell
Phone: (430) 382-3146
Fax: (430) 394-2909
E-mail: don.maxwell@ic.gc.ca

Ontario region

Larry Ranger
Phone: (705) 690-3244
Fax: (705) 671-0635
E-mail: larry.ranger@ic.gc.ca

Appendix II Current Measurement Canada services

Measurement Canada fulfills its mission through the following programs related to administration of the Weights and Measures Act:

• Establishment of measurement specifications - Measurement Canada is responsible for the development of specifications, regulatory amendments, policies and testing procedures for weighing and measuring devices. When a new measurement technology emerges onto the marketplace, it will be approved and inspected against regulatory specifications and test procedures. Specifications are developed in consultation with industry representatives.
• Maintenance and calibration of measurement standards - Measurement Canada owns and maintains measurement standards (references) that are traceable to national standards. Standards of mass (test weights), volume, temperature, etc., are calibrated and certified in relation to the references. These test standards are used by government inspectors and accredited and registered service providers to inspect and certify devices.
• Approval of new measurement device models - Measurement Canada, through its Approval Services Laboratory, must approve all weighing and measuring device models which are intended for trade use in Canada. All new and modified device models are examined and tested with respect to legislative requirements for design, composition, construction, and performance. This service is intended to ensure a population of measuring devices which are reasonably accurate throughout their lifetime and to minimize the possibility of fraudulent use. For some device types, Measurement Canada is a partner in a Mutual Recognition Program with our United States counterparts where all the approval evaluation tests are performed either by a Canadian or U.S. government laboratory and the results recognized by both countries. More recently, Measurement Canada entered into a Mutual Acceptance Arrangement with member countries of the International Organization for Legal Metrology (OIML) for recognition of test results in the approval of non-automatic weighing devices and related modules. Mutual Acceptance Arrangements allow for participating countries to utilize test reports from other countries in their own approval process.
• Initial inspection of new devices (certification) - Measurement Canada, through its field inspection staff, or accredited or registered service providers must inspect (initial inspection) all weighing and measuring devices, before they are used in trade, unless they are exempted by the Act and Regulations. The intent is to ensure the devices meet approval requirements, are installed correctly and operate within the appropriate limits of error (tolerance) before their service lives begin. Since January 1, 2007, all initial inspections are done by authorized service providers. Where there are less than two authorized service providers available, Measurement Canada inspectors will continue to provide initial inspection services.
• Periodic inspection of in-service devices - Devices used in trade to measure, pursuant to the requirements of the Weights and Measures Act are inspected, on a random basis, throughout their lifetime to ensure that they are properly maintained, continue to measure accurately, and are not used in a fraudulent manner. Device owners can also request an inspection by an authorized service provider. At present, there is no mandatory periodic certification.
• Net quantity (commodity) inspection - Goods and services traded on the basis of measure are inspected on a random basis or as needed to ensure that they are measured within prescribed tolerances. Commodities are generally inspected on a product/industry specific basis with emphasis placed on problem product/industries.
• Complaint investigation - Measurement Canada, through its field inspection staff, investigates complaints related to Weights and Measures legislation and advise affected parties of the result of the investigation, including where warranted, any corrective action instituted. However, any compensation is left up to the action of the parties involved.
• Accreditation of qualified organizations to inspect approved devices - An organization may be granted the authority to inspect and certify trade weighing and measuring devices on behalf of Measurement Canada provided that it meets the requirements of the accreditation standard, S-A-01 which is administered by Measurement Canada. Accredited organizations are periodically audited by Measurement Canada to ensure that the program is being carried out according to the standard. Their technicians are evaluated by Measurement Canada, are required to follow Measurement Canada accepted inspection procedures and their competence is monitored by Measurement Canada.
• Registration of qualified organizations to inspect approved devices - An organization may be granted the authority to inspect and certify trade weighing and measuring devices on behalf of Measurement Canada provided that it meets the requirements of Measurement Canada’s registration program. Registered organizations are not required to have a Quality Management System, but their recognized technicians are trained and evaluated by Measurement Canada, are required to follow Measurement Canada accepted inspection procedures and their competence is monitored by Measurement Canada. These organizations can only conduct inspections in specific sectors where the trade sector review led to the acceptance of registration as an alternative service delivery program.
• Voluntary periodic inspection program - An interim program where device owners would voluntarily have their trade measurement devices inspected and certified at specified periods until the Weights and Measures Act can be changed to make the program mandatory. This program can apply only to industry sectors where as a result of a trade sector review, the stakeholders have agreed to a mandatory periodic certification program for measuring devices used in trade.

Appendix III Comparison of the Accreditation and Registration Programs for device inspections

	Accreditation Program	Registration Program
Designation as Authorized Service Provider	The organization is accredited. Technicians within the organization are recognized.	The organization is registered. Technicians within the organization are recognized.
Scope	Open to all trade sectors where inspections will be conducted on behalf of Measurement Canada.	Limited by recommendations resulting from trade sector reviews. Program has to be acceptable to a consensus of stakeholders in a given sector, particularly vulnerable parties.
Requirements	A quality management system must be implemented. Additional Measurement Canada technical requirements must be met. Standards must be calibrated and certified. Technicians must be trained and pass theoretical and practical assessments before being recognized. Organization enters into a legal agreement with Measurement Canada. Requirements stipulated in Accreditation Standard S-A-01	Measurement Canada technical requirements must be met. Standards must be calibrated and certified. Technicians must be trained and pass theoretical and practical assessment before being recognized. Organization enters into a legal agreement with Measurement Canada. Requirements stipulated in Registration Program Terms and Conditions.
Training	At least one technician must receive the applicable technical training from Measurement Canada. Every technician must pass (with 70% or more) the theoretical and practical assessment by Measurement Canada in order to be recognized.	Every technician must receive the applicable technical training from Measurement Canada and pass (with 70% or more) the theoretical and practical assessment by Measurement Canada in order to be recognized.
Cost	$1000 per initial and surveillance audit. Training: $100 per day per person	$1000 per year. Training: $100 per day per person.
Monitoring (these are minimum requirements; additional monitoring may occur as necessary)	A surveillance audit of the quality management system is conducted annually. In addition, every 3 years, each technician is monitored through a product audit on at least one of the device types for which he or she is recognized, and over a 3 year period, product audits are performed on all device types under an accredited organization’s scope.	For each recognized technician, at least one follow-up inspection per device type is conducted every 12 months. In addition, annual meetings are held with registered organizations’ management to review monitoring findings and any necessary corrective action.

Appendix IV Other countries’ trade measurement services

The International Organization for Legal Metrology (OIML)

The International Organization of Legal Metrology (Organisation Internationale de Métrologie Légale) is a worldwide, intergovernmental organization whose primary aim is to harmonize the regulations and metrological controls applied by the national metrological services, or related organizations, of its Member States. The two main categories of International Organization for Legal Metrology publications are:

• International recommendations (International Organization for Legal Metrology -R), which are model regulations that establish the metrological characteristics required of certain measuring instruments and which specify methods and equipment for checking their conformity; the International Organization for Legal Metrology Member States shall implement these draft recommendations to the greatest possible extent;
• International documents (International Organization for Legal Metrology - D), which are informative in nature and intended to improve the work of the metrological services.

International Organization for Legal Metrology recommendations and documents are developed by technical committees or subcommittees which are formed by the member states. Certain international and regional institutions also participate on a consultation basis. Cooperative agreements are established between International Organization for Legal Metrology and certain institutions, such as ISO and IEC, with the objective of avoiding contradictory requirements; consequently, manufacturers and users of measuring instruments, test laboratories, etc., may apply simultaneously International Organization for Legal Metrology publications and those of other institutions.

International recommendations and international documents are published in French (F) and English (E) and are subject to periodic revision.

International Organization for Legal Metrology publications may be obtained from the Organization’s headquarters:
Bureau International de Métrologie Légale 11, rue Turgot - 75009 Paris - France
Telephone: 33 (0)1 48 78 12 82 Fax: 33 (0)1 42 82 17 27
E-mail: biml@International Organization for Legal Metrology.org
Internet: www.International Organization for Legal Metrology.org

The OIML reference document for this sector's specifications is the OIML R-75, which addresses thermal energy meters. This document is defined as an "International Recommendation.” They are "model regulations that establish the metrological characteristics required of certain measuring instruments and which specify methods and equipment for checking their conformity; the OIML Member States shall implement these Recommendations to the greatest possible extent.” The OIML R-75 was developed on the basis of 1997 European Standard EN 1434.

OIML R 75 is available to be down-loaded free at: http://www.oiml.org/publications

Legislation

United States of America

As in Canada, research across the US has confirmed that, the steam and thermal energy sector has long existed and is expected to grow rapidly with high energy costs, especially with today's green program initiatives. The US does not appear to have adopted an official national standard for installation and inspection of trade measuring devices in the steam and thermal energy sector. This industry is a very specialized one that historically has been developed and closely guided by organizations such as the American Society of Heating, Refrigerating and Air-conditioning Engineers (ASHRAE) and by trade organizations within the boiler code sector.

States such as New York and Minnesota have well established district energy plants. Similar to Canada, these district energy plants and/or co-generation plants are installed, commissioned, and maintained by competent and specialized companies that follow their own specifications based on international installation and calibration protocols. The industry is mostly self-regulated with no government intervention from the measurement perspective.

Unlike the European states, that have legislated the Measuring Instruments Directive (MID) in October 2006 to harmonize measurement device requirements, including heat meters, at the national level, the US does not seemed to have taken this approach. Basically, contractual agreements are drawn up between suppliers and purchasers (hosts) with the understanding that the equipment and method of installation conform to industry standards with maintenance programs to maintain system integrity and accuracy. In most cases, US installers are adopting the OIML R-75 standard which is derived from the European standard EN 1434.

Energy monitoring systems are being used in the US, but are left to state weights and measures agencies or utility commission to regulate as they see fit.

United Kingdom

The Weights and Measures Act - 1985 applies to trade measurement devices under the authority of the Department for Business Enterprise and Regulatory Reform (the Department of Trade and Industry till June 2007). Trading standards officers in locations called local trading standards authorities are responsible for enforcing the legislation.

In Europe, heat meters come under the Measuring Instruments Directive 2004/22/EC (MID). In the UK a separate regulation relates to instruments covered by the Directive, but not regulated within the UK, (e.g., heat meters). These are referred to as "non-prescribed instruments.”

France

The minister responsible for industry produces decrees, orders, circulars etc. in which the metrological requirements for devices and the methods of application are written. The Laboratoire National de Métrologie et d'essai (LNE) provides the direction for metrology in France and steam and thermal energy devices fall under their authority.

New Zealand

The Ministry of Consumer Affairs' Measurement and Product Safety Service (MAPSS) oversees the Weights and Measures Act 1987 (amended 1991) and has the responsibility for regulating the legal metrology infrastructure in New Zealand. MAPSS is involved with many sectors of trade. However, New Zealand does not control devices used for the sale of steam and/or thermal energy.

Austria

The Metrology Service of the Bundesamt für Eich - und Vermessungswesen, or BEV (Federal Office of Metrology and Surveying) located in Vienna, is the national metrology institute (NMI) and the national legal metrology authority in Austria.

The tasks of the BEV, as legal metrology authority, comprise type approval and verification of measuring instruments, market oversight and in-service-inspection, control of pre-packages and supervision of accredited verification bodies. Verifications are only carried out by the BEV or the 9 local verification offices if there are no verification bodies accredited for the type of instrument.

Austria is a signatory of the Meter Convention and of the Convention of the OIML. The BEV signed the Memorandum of Understanding of WELMEC and is a member of EURAMET e.V. Like most trade measurement devices, steam and thermal energy devices are regulated in Austria.

Physical test standards

United States of America

There are no national or state requirements for physical test standard calibration in the US for this sector.

United Kingdom

The National Weights and Measures Laboratory (NWML) is the national body responsible for ensuring traceability of standards in the United Kingdom. Local authorities provide the dissemination of national standards to local and secondary standards throughout the United Kingdom.

The National Weights and Measures Laboratory is accredited to ISO 9001:2000 by the United Kingdom Accreditation Service (UKAS). The National Weights and Measures Laboratory requests that measuring equipment be sent for periodic re-calibration to laboratories that are IEC/ISO 17025 registered.

Local authorities are held responsible for having an adequate supply of local and working standards, test equipment, and stamping equipment to provide services in their area. The National Weights and Measures Laboratory prescribes time limits for the testing of local standards. Heat meter temperature properties are traceable under the International Temperature Scale of 1990, ITS-90.

France

Test standards are required to be calibrated every year. Production and calibration of standards requires accreditation by the Comité Français de l'Accréditation (COFRAC) which also controls the chain of calibration (traceability). The Laboratoire National de Métrologie et d'Essais (LNE) and private laboratories operating in this area are audited annually by COFRAC using the standard NF EN ISO/CEI 17025 v2005 report. The LNE retains the French national standards.

New Zealand

Do not monitor physical test standards for this sector.

Austria

The National Metrology Institute has the task to maintain the national measuring standards of the legal units of measurement and to lay down methods of realisation of these units as well as to carry out international comparisons. The legal units of measurement are disseminated by calibration and testing of measuring instruments/devices. The Physico-Technical Testing Service (PTT), which is a restricted legal entity, is entrusted with calibration, testing and related training.

International Organization for Legal Metrology

The International Organization for Legal Metrology has published a document entitled “Principles for metrological control of equipment used for verification” (D23-EN). This document recommends all test standards should be traceable to national standards and the calibration periods should be dependent on the stability of the standards and their use, conservation and degree of accuracy.

Approvals

United States of America

There are no national or state requirements for approval of devices in this sector. This sector could be considered to be self regulated.

United Kingdom

Heat meter measurement falls under the Measuring Instruments Directive 2004/22/EC (MID). In the UK, a separate regulation relates to instruments covered by the Directive, but not regulated within the UK. Heat meters are referred to as "non-prescribed instruments" and the regulation governing them provides a means by which UK manufacturers can be permitted to undertake conformity assessment procedures on these instruments. This allows them to export devices to other EC member states where the particular instruments are regulated.

France

All devices used in trade are required to be approved. Type approval evaluations are equivalent to the approval of measuring devices by Measurement Canada. They are conducted in France only by the Laboratoire National de Métrologie et d'essais (LNE), a designated state organization. Only the LNE is accredited by COFRAC to approve measuring devices based on the NF EN 45011 standard. However, the LNE can consider the test results from the device manufacturers or from an independent laboratory. It should be noted that the device type approval certificate issued by another member state of the European Union is recognized by France and vice-versa.

New Zealand

Devices used to measure steam or thermal energy do not require approval in New Zealand.

Austria

Trade devices require federal approval prior to use in trade. All approval work is done by the federal government authority. Type approval is conducted by the Bundesamt für Eich - und Vermessungswesen, or BEV. The examination and testing work is done by the Physico - Technical Testing Service (PTT) of the BEV, but in some cases the results of other competent laboratories may also be taken into account. This holds equally for test results from similar bodies abroad, especially on the basis of international agreements. Fees charged for the testing work are calculated on a full economic cost recovery principle.

Initial inspection

United States of America

There are no national or state requirements requiring devices to be initially inspected by a government inspector or authorized service provider before they are used in trade in this sector.

United Kingdom

National legislation requires that all devices must be tested, passed as fit for use for trade and stamped before being put into use. The testing can be done by a local government inspector or a device manufacturer or device supplier that has been granted approved verifier status under the provisions of section 11(a) of the Weights and Measures Act 1985, however, heat meters are not regulated in the UK and their initial inspection is not required.

France

The initial verification is for the most part the equivalent to the initial inspection in Canada. It is required to be done before the device is used. It is also necessary following the repair of a device whenever a metrological function is in question. The manufacturer or the repairer must obtain a quality system certificate of approval and an implementation certificate for a quality management system based on ISO9001:2000 administered by the Laboratoire National de Métrologie et d'essais (LNE) in order to do the verification themselves or failing that, they have to hire another manufacturer or repairer that has this capability or contact LNE or Directions Régionales de l'Industrie, de la Recherche et de l'Environnement (DRIRE). These requirement apply to this sector.

New Zealand

Devices used to measure steam and/or thermal energy do not require initial inspection.

Austria

Verification is carried out by accredited verification bodies. Initial verifications are only carried out by the BEV or one of their nine local verification offices only if there are no verification bodies accredited for the type of instrument. Devices used for law enforcement purposes are exempt from initial inspection. These requirements apply to this trade sector.

Periodic (subsequent) inspection

United States of America

There is no federal or state legislation in the US which requires mandatory periodic inspection in this sector.

United Kingdom

Current legislation does not apply to heat meters and there are no mandatory time intervals for periodic inspection of these devices. There are no statutory periods of inspection for heat meters provided in current legislation

France

The owner of a measuring instrument used for trade measurement is responsible for requesting a periodic inspection of the instrument by the manufacturer or the repairer of their choice. There is currently no regulated mandatory periodic inspection for the devices used in this sector. In certain cases, the Laboratoire National de Métrologie et d’essais (LNE) or the Directions Régionales de l'Industrie, de la Recherche et de l'Environnement (DRIRE) network can conduct the periodic verification. These requirements apply to this trade sector.

New Zealand

There is no requirement for periodic inspection of devices used to measure steam and thermal energy.

Austria

Devices used for the measurement of steam and thermal energy have a mandatory re-verification period of 5 years. Re-verification is carried out by accredited verification bodies.

The limits of error for re-verification are generally the same as for initial verification. The in-service limits of error in most cases are twice these values.

Complaints

United States of America

No set of national protocols exist for the handling device complaints in the US. Complaints are generally made to local consumer affairs authorities or state utility boards.

United Kingdom

Part III of the Device Regulations 1988, requires that a government inspector shall test the device if so requested (in writing) by the customer. The owner is required to adjust the customer's account, if it is found that the device is outside the applicable limit of error. There is no charge for the inspection. These requirements apply to this trade sector.

France

National inspectors of the Directions Régionales de l'Industrie, de la Recherche et de l'Environnement (DRIRE) network investigate measuring instrument complaints. This service is free. To be more precise, it is the Bureau de la Loyauté C3 which oversees the accuracy of quantity declarations on pre-packaged commodities. The French government does not have private partners to conduct these controls. Infractions can lead to a notification of errors, a regulation report, a penalty, a ticket or prosecution. These requirements apply to this trade sector.

New Zealand

Measurement and Product Safety Services provides information for consumers on their rights and remedies when buying goods by weight or other measurements. Information is also provided for businesses on their legal obligations and responsibilities. Complaint inspections are conducted when that is an appropriate response to a complaint. The measurement of steam and thermal energy has not previously been monitored nor have any complaints been received. Therefore, no programs are in place to address complaints in this area of trade.

Austria

The tasks of the BEV, as legal metrology authority, include market oversight and control of pre-packages. The mandatory re-verification system is supplemented by random inspection. Inspection comprises market surveillance as well as inspection of measuring instruments in service. Complaint inspections in this sector are conducted by verification officers.

Appendix V Steam and thermal energy compliance reports for the period of 2003 - 2008

There are no compliance rates available for this sector as no inspections have been conducted by Measurement Canada.

Net quantity

There are no packaged products in this sector. Therefore there are no net quantity (commodity) inspections performed by Measurement Canada.

Appendix VI Glossary of terms

The following is a list of terms used in this discussion paper, and their meanings.

Alternative Service Delivery (ASD) Mechanisms

Provision of public services through arrangements other than the traditional departmental structure. Under these programs, qualified organizations are authorized to deliver services on Measurement Canada’s behalf.

Examples of Measurement Canada’s ASD mechanisms:

• Measurement Canada’s Accreditation Program - allows organizations to be granted the authority to inspect and certify weighing and measuring trade devices, provided that they implement a quality assurance program based on Measurement Canada's S-A-01 standard and comply with all aspects of the program. These arrangements are subject to audit by Measurement Canada.
• Measurement Canada’s Registration Program - allows organizations to be granted the authority to inspect and certify weighing and measuring trade devices without the requirement to implement a quality assurance program. The organization however must comply with the requirements of the Registration Program and Measurement Canada legislation. Measurement Canada monitors registered organizations and recognized technicians, on a regular basis, through meetings, follow-up inspections and witness inspections.
• Delegation of Authorities Program - This program authorizes organizations to calibrate and certify certain measurement standards, measuring apparatus and test equipment on behalf of Measurement Canada. The program scope is presently limited to the calibration and re-certification of electricity meter calibration consoles and the calibration and certification of pressure, temperature and dimensional standards used in the natural gas sector.
• Recognition of Calibration Results from CLAS Type I Laboratories Program - This program allows Measurement Canada to consider CLAS certified Type I Laboratories calibration results in order for the Minister to designate as a local standard any standard that has been calibrated and certified in relation to a reference standard as accurate within prescribed tolerances. The program’s scope is presently limited to mass standards.

Approval

Mandatory evaluation, before a device design or model may be sold as “Legal for Trade” in Canada. Prototype measuring instruments intended for trade use are evaluated for compliance with legislated requirements to ensure they are capable of measuring accurately, under normal conditions of use, throughout their service lifetime. Once approved, an approval number is issued authorizing the use of the device type for “Legal for Trade” use in Canada.
Weights and Measures approval numbers may be found on the device and will generally be in the format of SWA-XXXX or AM-XXXX. Once approved, the device may be initially inspected before used in trade. [See Initial Inspection]

Calibration

Comparison between a measuring device of unknown accuracy to a known measuring standard in order to detect or eliminate by adjustment any variation from the required performance limits of the measuring device.

Certify

To attest and document the acceptability of a device or measuring standard compared to specified requirements. This is usually done by Measurement Canada inspectors or organizations authorized to certify devices on behalf of Measurement Canada.

Consensus

General agreement among stakeholders with the proposed recommendation(s). Unanimous agreement is not required.

Energy Monitoring System (EMS)

A system comprised of one or more measuring devices used to monitor energy usage in the steam and thermal energy sector.

Initial inspection

Mandatory first inspection of an individual device before it may be placed into trade service. This inspection ensures that the device is installed and measuring correctly.

Legal metrology

Science of measurement in legal trade transactions.

Level of intervention

Amount of government involvement in regulating an industry sector, to ensure fair and equitable trade measurement.

MC

Measurement Canada, an Agency of the Federal Department of Industry Canada, administers and enforces the Weights and Measures Act and the Electricity and Gas Inspection Act.

NIST

National Institute of Standards and Technology (U.S.)

NRC

National Research Council (Canada)

NTEP

National Type Evaluation Program (U.S.)

Periodic certification

Subsequent inspection program, instituted as a result of a trade sector review, where devices in a sector are inspected and certified at specified periods.

Pre-packaged Commodities

Commodities packaged and labelled with the net quantity statement before being offered for sale.

S-A-01

Criteria for the Accreditation of Organizations to Perform Inspections Pursuant to the Electricity and Gas Inspection Act and the Weights and Measures Act.

Standards (physical)

Actual test equipment, i.e., test weights, usually calibrated or referenced to a national physical standard that is used to test trade measurement devices.

Standards (written)

Refers to written technical specifications, procedures and policies.

Subsequent inspection

Inspection of a trade measuring device after the initial inspection and usually after the device is used in trade. This inspection could be random, periodic or requested by the device owner.

Traceable/traceability

Step by step accountability of a calibration of a standard or device back to a reference standard. Test weights may be traceable to the international prototype kilogram held in Sèvres, France. Metric weights in Canada are traceable to the Canadian one kilogram standard MR-1, which in turn is traceable to the international prototype.

Trade

Selling, purchasing, exchanging, consigning, leasing or providing of any commodity, right, facility or service on the basis of measure and includes the business of providing facilities for measuring.

Trade Sector Review (TSR)

Process whereby Measurement Canada reviews and assesses its services provided to the marketplace to ensure their relevancy to the needs of the sector stakeholders.

Vulnerable party

Party who is the purchaser or seller of a product and who does not own or control the measurement equipment used in the transaction. The degree of vulnerability may vary from nil to high depending upon the capacity and ability of the vulnerable party to detect measurement errors, to re-measure the product and to have corrective measures taken where appropriate.