The Electricity and Gas (Determination of Turnover for Penalties) Order 2002

Explanatory Note

(This note is not part of the Order)

This Order makes provision for the determination of the turnover of a licence holder for the purposes of section 27A(8) of the Electricity Act 1989 (“the Electricity Act”) and section 30A(8) of the Gas Act 1986 (“the Gas Act”) (article 3).

Section 27A of the Electricity Act and section 30A of the Gas Act provide that where the Gas and Electricity Markets Authority (“the Authority”) is satisfied that a licence holder has contravened or is contravening any licence condition or certain requirements imposed on him by the Electricity Act or the Gas Act or is failing or has failed to achieve any standard of performance prescribed under section 39 or 39A of the Electricity Act or section 33A or section 33AA of the Gas Act the Authority may impose on the licence holder a penalty of such amount as is reasonable in all the circumstances of the case not exceeding 10 per cent of the turnover of the licence holder.

A regulatory impact assessment is available and can be obtained from the Energy Policy Directorate, Department of Trade and Industry, 1 Victoria Street, London SW1H 0ET. Copies have been placed in the libraries of both Houses of Parliament.