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Energy Act 2023

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PenaltiesU.K.

This section has no associated Explanatory Notes

4(1)Where the economic regulator is satisfied that a licence holder has contravened or is contravening any relevant condition or requirement, the economic regulator may, subject to paragraph 6, impose on the licence holder a penalty of such amount as is reasonable in all the circumstances of the case.

(2)Before imposing a penalty on a licence holder under sub-paragraph (1), the economic regulator must consider whether it would be more appropriate to proceed under the Competition Act 1998.

(3)The economic regulator must not impose a penalty on a licence holder under sub-paragraph (1) if it considers that it would be more appropriate to proceed under the Competition Act 1998.

(4)Before imposing a penalty on a licence holder under sub-paragraph (1) the economic regulator must give notice—

(a)stating that it proposes to impose a penalty and the amount of the penalty proposed to be imposed,

(b)setting out the relevant condition or requirement,

(c)specifying the acts or omissions which, in the opinion of the economic regulator, constitute the contravention in question and the other facts which, in the opinion of the economic regulator, justify the imposition of a penalty and the amount of the penalty proposed, and

(d)specifying the period (which must not be less than 21 days from the date of publication of the notice) within which representations or objections with respect to the proposed penalty may be made,

and must consider any representations or objections which are duly made and not withdrawn.

(5)Before varying any proposal stated in a notice under sub-paragraph (4)(a) the economic regulator must give notice—

(a)setting out the proposed variation and the reasons for it, and

(b)specifying the period (which must be at least 21 days from the date of publication of the notice) within which representations or objections with respect to the proposed variation may be made,

and must consider any representations or objections which are duly made and not withdrawn.

(6)As soon as practicable after imposing a penalty, the economic regulator must give notice—

(a)stating that it has imposed a penalty on the licence holder and its amount,

(b)setting out the relevant condition or requirement in question,

(c)specifying the acts or omissions which, in the opinion of the economic regulator, constitute the contravention in question and the other facts which, in the opinion of the economic regulator, justify the imposition of the penalty and its amount, and

(d)specifying a date, no earlier than the end of the period of 42 days from the date of service of the notice on the licence holder, by which the penalty is required to be paid.

(7)The licence holder may, within 21 days of the date of service on the licence holder of a notice under sub-paragraph (6), make an application to the economic regulator for it to specify different dates by which different portions of the penalty are to be paid.

(8)Any notice required to be given under this paragraph must be given—

(a)by publishing the notice in such manner as the economic regulator considers appropriate for the purpose of bringing the matters to which the notice relates to the attention of persons likely to be affected by them, and

(b)by serving a copy of the notice on the licence holder.

(9)This paragraph is subject to paragraph 10 (maximum amount of penalty that may be imposed).

(10)Any sums received by the economic regulator by way of penalty under this paragraph must be paid into the Consolidated Fund.

Commencement Information

I1Sch. 3 para. 4 in force at 26.12.2023, see s. 334(3)(a)

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