If the equipment is designed to operate at a temperature up to, but not exceeding 110 °C, then 110 °C shall be the value of TS, as defined in Article 2(9), specified by the manufacturer. In this case, the temperature limiter shall be set to ensure that the water temperature will not exceed 110 °C.
In the example given in the question, TS = 120 °C.
See also PED Guideline B-12.