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SCHEDULES

SCHEDULE 1U.K. The Gas and Electricity Markets Authority

Terms of appointment, remuneration, pensions etc.E+W+S

2(1)Subject to this Schedule, the chairman and other members shall hold and vacate office as such in accordance with the terms of their respective appointments.E+W+S

(2)The terms of appointment of the chairman and other members shall be determined by the Secretary of State.

[F12A.E+W+SA person holding office as chairman or other member must not—

(a)seek or take any instructions that might compromise, or might reasonably be seen to compromise, the independence of the Authority in relation to its [F2designated regulatory functions]; or

(b)carry out any other activity, or have any financial or other interest, that might compromise, or might reasonably be seen to compromise, that person’s impartiality.]

[F33(1)An appointment of a person to hold office as chairman or other member must be for a term of not less than 5 years and not more than 7 years.E+W+S

(2)But in appointing as chairman or other member a person who is on the Authority’s staff, the Secretary of State may make the appointment subject to a condition that the appointment will end if that person ceases to be on the Authority’s staff.

(3)The appointment of a person as chairman or other member may be renewed only once.

(4)The Secretary of State must ensure that there is sufficient continuity in the persons holding office as chairman or other member in determining—

(a)the term of a person’s appointment in accordance with sub-paragraph (1) (whether initially or on renewal); and

(b)whether or not to renew an appointment in accordance with sub-paragraph (3).

(5)A person holding office as chairman or other member may resign that office by giving notice in writing to the Secretary of State.

(6)A person holding office as chairman or other member may be removed from office by the Secretary of State on one of the following grounds only—

(a)a breach of paragraph 2A;

(b)incapacity; or

(c)misbehaviour.]

4(1)The Authority shall pay to the chairman and other members such remuneration, and such travelling and other allowances, as may be determined by the Secretary of State.E+W+S

(2)The Authority shall, if required to do so by the Secretary of State—

(a)pay such pension, allowances or gratuities as may be determined by the Secretary of State to or in respect of a person who is or has been the chairman or a member of the Authority; or

(b)make such payments as may be so determined towards provision for the payment of a pension, allowances or gratuities to or in respect of such a person.

(3)If, where any person ceases to hold office as chairman or other member, the Secretary of State determines that there are special circumstances which make it right that he should receive compensation, the Authority shall pay to him a sum by way of compensation of such amount as may be determined by the Secretary of State.