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ARTICLE · 10 JANUARY 2020

The Utility Regulators' Powers To Impose Financial Penalties

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In 2019 fines totalling around £9.5 million for contravention of licence conditions were imposed by the economic regulators of utilities.

United KingdomFinance and Banking

In 2019 fines totalling around £9.5 million for contravention of licence conditions were imposed by the economic regulators of utilities. In March 2019, the Office of Rail and Road (ORR) imposed a £5 million fine on Govia Thameslink Railway1. In October 2019, the Water Services Regulation Authority (Ofwat) imposed a fine of £3 million on Southern Water Services2. In July 2019, the Office of Communications (Ofcom) imposed a fine of £1.4 million on Giffgaff3. The remaining major economic utility regulator, the Gas and Electricity Markets Authority (GEMA), did not impose any fines4  under domestic legislation in 2019, although it has previously done so.

This article will compare the powers of the economic utility regulators to levy fines5 for breach of licence conditions, how regulators decide whether to impose a fine, how the amount is determined, what happens to the money paid over and the mechanism for challenging fines. We will also look briefly at GEMA's power to

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