...snip
We're talking about "appliances" some of which may have surge protection etc and will fail the test at 500V DC, then what do you do if you must insulation test it at Dc voltage 2x the RMS?
Something like my oven or dishwasher or TV or vacuum cleaner, stuff with 230v motors elements etc power mains power switched internally by low voltage "soft" switching, you can't properly test with your 500V DC or 250V setting on your PAT anyway - you've got no way to get that voltage past the power switch (relay) on the device, so you're not actually testing the device at all - a phase wire to an element or motor or whatever might be direct shorted to some metal on the case - and the PAT test will not pick it up, so unless you pull the thing completely to pieces, you can't practically test it with 2x RMS supply voltage.
#1 if a surge protection is failing at 500V then it's faulty, (oh look the required test has found the faulty surge protection)
#2 any kind of switching should not switch the neutral (there are exceptions for medical equipment and hazardous area equipment and a few others) so a neutral-earth test will pick up an element faulted to earth.
#3 testing requirements require that mechanical operated switches should be activated such as turning the switch on, on the jug. beyond that common sense should kick in and a competent person will realise that further testing although not impossible is impractical.
#4 any fool who does a phase to neutral insulation test on and electronic device such as a TV deserves to pay for the damage done, and this is where competency again comes in to play.
There is a whole standard on testing, something your average DIYer usually knows nothing about
So if you've found something stating that it's compulsory to test like that, please post a link to the exact clause, in full - not another version leaving out the important bits about when that test can't be used, then what should be done.
Already have regulation 82