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Part 5 E+W+SOperating Licences

RegulationE+W+S

121Financial penaltyE+W+S

(1)The Commission may require the holder of an operating licence to pay a penalty if the Commission thinks that a condition of the licence has been breached.

(2)Before imposing a requirement on a licensee to pay a penalty under this section the Commission must notify him—

(a)that the Commission proposes to require him to pay a penalty,

(b)of the amount of the proposed penalty,

(c)of the Commission's reasons, and

(d)of a period within which he may make representations to the Commission.

(3)The Commission may not give a notice under subsection (2) in respect of the breach of a condition after the end of the period of two years beginning with—

(a)the day on which the breach occurred or began to occur, or

(b)if later, the day on which the breach came to the knowledge of the Commission.

(4)After the end of the period specified under subsection (2)(d) the Commission may give the licensee a notice requiring him to pay a penalty under this section.

(5)A penalty imposed by notice under subsection (4)—

(a)shall be payable by the licensee to the Commission,

(b)may be enforced as if it were a debt owed by the licensee to the Commission, and

(c)on receipt by the Commission shall be paid into the Consolidated Fund after deduction of a sum which represents the direct costs to the Commission of, and a reasonable share of expenditure by the Commission which is indirectly referable to—

(i)the investigation by the Commission of the matter in respect of which the penalty is imposed (whether by review under section 116 or otherwise), or

(ii)the imposition and enforcement of the penalty.

(6)The Commission shall—

(a)prepare a statement setting out the principles to be applied by the Commission in exercising the powers under this section,

(b)review the statement from time to time,

(c)revise the statement when the Commission thinks it necessary,

(d)as soon as is reasonably practicable—

(i)send the statement and any revision to the Secretary of State, and

(ii)publish the statement and any revision, and

(e)have regard to the statement when exercising a power under this section.

(7)The statement maintained under subsection (6) must, in particular, require the Commission in considering the imposition of a penalty under this section or the amount of a penalty to have regard, in particular, to—

(a)the seriousness of the breach of condition in respect of which the penalty is proposed,

(b)whether or not the licensee knew or ought to have known of the breach, and

(c)the nature of the licensee (including, in particular, his financial resources).

(8)Before preparing or revising a statement under subsection (6) the Commission shall consult—

(a)the Secretary of State,

(b)the Lord Chancellor, and

(c)such other persons as the Commission thinks appropriate.

Modifications etc. (not altering text)

Commencement Information

I1S. 121 in force at 1.9.2007 by S.I. 2006/3272, art. 2(4)(5), Sch. 3B (with arts. 7-11, 7-12, Sch. 4) (as inserted by S.I. 2007/2169, arts. 3, 6, Sch.)