The regulation explicitly requires “a continuous function providing information or indicating the status of the equipment on a display”. In the example, once the indication is (i.e. the “H”) is switched off, there is no “information or indication of the status of the equipment” anymore, so this cannot be considered as a continuous function. In addition, see also the published guidance document:
“[…] The definition of standby includes display, for which an additional allowance for power consumption is defined. A display is a field in which status information (e.g. the word “standby”) and/or time is displayed. As mentioned above a LED that is merely indicating off-mode condition, is not considered to be a display.”
Disclaimer: Please note that the European Commission cannot provide a legally binding interpretation of the EU legislation, as this is the sole competence of the European Court of Justice. Any remarks from the European Commission services are without prejudice to the position the Commission might take should related cases arise in a procedure before the Court of Justice.