The Energy Act 2016 amended the Electricity Regulation Act 1999 to provide the CRU with powers to impose administrative sanctions, including financial penalties.
To design an approach to setting financial penalties in individual cases in an informed manner and to enhance clarity, on 9 January 2024, the CRU launched a consultation (CRU2023160) (“the first proposed decision paper”) to invite comments from interested parties.
Having reviewed all responses to the first proposed decision paper, the CRU gathered a number of meaningful comments and valid questions. In response, the CRU updated the proposed approach by further elaborating on or revising certain components of the proposed approach. This paper presents the updated approach.
The CRU would like to invite all interested parties to provide feedback on the updated approach as explained in this proposed decision paper, so that the CRU can construct the approach in an informed manner and make reasonable decisions.
Key changes include applying a gravity level under the proposed methodologies, measuring the duration of improper conduct in weeks, refining the lists of aggravating and mitigating factors, and removing cap on adjustments based on mitigating factors.
Interested parties should refer to the relevant sections of this paper for full details and provide comments on that basis.
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The CRU welcomes responses to the questions in Table 2 Page 15
Approach to Setting Financial Penalties (updated) Proposed Decision Paper
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The Energy Act 2016 amended the Electricity Regulation Act 1999 to provide the CRU with powers to impose administrative sanctions, including financial penalties.
To design an approach to setting financial penalties in individual cases in an informed manner and to enhance clarity, on 9 January 2024, the CRU launched a consultation (CRU2023160) (“the first proposed decision paper”) to invite comments from interested parties.
Having reviewed all responses to the first proposed decision paper, the CRU gathered a number of meaningful comments and valid questions. In response, the CRU updated the proposed approach by further elaborating on or revising certain components of the proposed approach. This paper presents the updated approach.
The CRU would like to invite all interested parties to provide feedback on the updated approach as explained in this proposed decision paper, so that the CRU can construct the approach in an informed manner and make reasonable decisions.
Key changes include applying a gravity level under the proposed methodologies, measuring the duration of improper conduct in weeks, refining the lists of aggravating and mitigating factors, and removing cap on adjustments based on mitigating factors.
Interested parties should refer to the relevant sections of this paper for full details and provide comments on that basis.
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