Committees of The Authority - Terms of Reference and Non ...€¦ · Markets Authority and their purpose, and the membership of its Members. The full terms of reference of each Committee

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COMMITTEES OF THE AUTHORITY

Terms of Reference and Non-Executive membership, June 2020

Introduction

This cover note sets out briefly some information on the main Committees of the Gas and Electricity

Markets Authority and their purpose, and the membership of its Members. The full terms of reference of

each Committee are attached in the Annex to the note.

The Authority sets up further and sometimes ad hoc working groups to follow, review and advise on

particular issues, working closely with Executive teams.

Audit and Risk Assurance Committee

Myriam Madden (Chair)

Lynne Embleton

Martin Cave

The Committee meets at least three times a year, and holds occasional workshops to

which all Authority Members are invited. The Committee considers and reviews all

financial, budgetary and performance matters for Ofgem and E-Serve and has strong

interest and involvement in risk and its identification, management and mitigation, and

in the development of performance indicators.

People and Remuneration Committee

Christine Farnish (Chair)

Paul Grout

Ann Robinson

The Committee meets at least three times a year to review senior staff performance

and their remuneration and to consider other matters remitted to it by the Authority

for review and advice.

E-Serve Board

Jonathan Brearley (Chair)

One Non-Executive Director on rotation

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E-Serve was established as a separate Ofgem internal Division in 2009 to undertake an

increasing range of delivery activities to implement policies and regulations on behalf

of the Authority in a timely, efficient, and robust manner. E-Serve primarily receives

its funding from the Department for Business, Energy and Industrial Strategy (BEIS)

and the Department for the Economy (Northern Ireland) (DfE) or from its delivery

initiatives – it does not perform discretionary work.

It has since built a strong and respected commercial and process delivery capability. In

parallel, E-Serve is achieving cost savings and improved performance.

Following a strategy review in 2014, the Authority decided to establish a new

Committee of the Authority “the E-Serve Board” to provide the flexibility and

autonomy necessary to steer E-Serve strategic and operational matters, while

maintaining the necessary Authority oversight.

Provides assurance to the Authority on performance of those activities. The

membership of the E-Serve Board also includes the Managing Director E-Serve (ex

officio) and two external experts, Brendan Walsh and Martin Wilson.

Enforcement Decision Panel

The Enforcement Decision Panel (EDP) has been established to take important decisions

in contested enforcement cases on behalf of the Authority. The EDP has been created

to allow cases to be decided by dedicated specialists (who are employees of the

Authority specifically employed for EDP duties), with an easily visible separation

between the investigation and decision-making functions. There are, therefore, no

Members of the Authority who are also members of the EDP. Members of the EDP play

a crucial role in continuing to deliver our central duty to protect consumers, facilitate

competition and ensure the integrity of the wholesale energy market. Members of the

EDP are appointed to case decision panels by the EDP Chair, as needed, to hear and

take decisions in individual cases. The Chair or any legally qualified member of the

EDP can take decisions on whether or not to proceed with criminal cases.

The Chair of the EDP is Megan Forbes. Details of the other members and further details

of the EDP’s method of working and its full terms of reference are available here. https://www.ofgem.gov.uk/about-us/how-we-work/our-approach-

regulation/enforcement-decision-panel

Members of the EDP also chair and take part in Settlement Committees (see next

section).

Enforcement Settlement Committees

Enforcement Settlement Committees may be established to decide whether to authorise

a settlement procedure in respect of an investigation under the Competition Act 1998

or in respect of alleged contraventions under various sections of the Gas Act 1986, the

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https://www.ofgem.gov.uk/about-us/how-we-work/our-approach-regulation/enforcement-decision-panel

https://www.ofgem.gov.uk/about-us/how-we-work/our-approach-regulation/enforcement-decision-panel

Electricity Act 1989 or the Electricity and Gas (Market Integrity and Transparency)

(Enforcement etc.) Regulations 2013 and to take all relevant actions in respect of such

decisions under the Gas Act 1986, the Electricity Act 1989 or the Electricity and Gas

(Market Integrity and Transparency) (Enforcement etc.) Regulations 2013.

Committees will be appointed separately for each case and will comprise two members

of the EDP, one acting as Chair and a Partner or Senior Partner of the Authority

nominated by the Chair of Ofgem of the Authority. Any decisions of such committees

must be achieved by majority vote. In all relevant cases other than those under the

Competition Act 1998, such Committees have full delegation of the relevant powers

from the Authority including approval of any penalty. An EDP member who has served

on a Settlement Committee in respect of a particular case may not also serve on an

EDP case decision panel appointed in respect of that case.

RIIO 2 Committee

Paul Grout (Chair)

Christine Farnish

John Crackett

Lynne Embleton

Myriam Madden

Ofgem sets price controls for the companies that operate the gas and electricity

networks in Great Britain using the RIIO framework. RIIO involves setting Revenue

using Incentives to deliver Innovation and Outputs. We are now developing proposed

changes to the framework for the next price control, called RIIO-2. The Committee

meets at least three times a year to ensure that the Authority’s decision-making

process in respect of RIIO-2 runs efficiently and effectively by considering the policy

detail and making recommendations on specific issues before they are put to the

Authority meeting for decision. They also give additional guidance to the team and

will engage with stakeholders at appropriate times during the price control delivery

process.

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AUDIT AND RISK ASSURANCE COMMITTEE

TERMS OF REFERENCE

1. Purpose

The Authority holds responsibility for risk management, internal control and governance

of Ofgem and has established an Audit and Risk Assurance Committee to assist in the

review of the comprehensiveness and effectiveness of management and control

processes across these areas.

The Audit and Risk Assurance Committee will provide assurance to the Authority on any

matter that they or the Authority consider may put at risk or affect the achievement of

Ofgem's strategic objectives, operational effectiveness or license to operate as an

independent regulator as set-out in statutes and by reference to the Strategic Plan or

other instruments of delegation approved by the Authority.

The Audit and Risk Assurance Committee will also provide assurance to the Authority

on any matter that may affect or have affected the financial integrity, financial reporting

or internal controls of the organisation.

2. Membership and Attendance

The Committee shall have a minimum of two members, one of whom will have recent

and relevant financial experience, to be appointed by the Authority from its Non-

Executive members, together with, in attendance:

Director of Resources

Head of Internal Audit

Representative of the National Audit Office;

Chief Executive/Accounting Officer attending by invitation or at his request;

Other individuals attending by invitation on an ad-hoc basis;

Ofgem shall provide a Secretary to the Committee;

A quorum shall be considered to be two members.

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3. Duties

The main duties of the Committee, on behalf of the Authority, shall be:

To examine the manner in which the organisation ensures and monitors the adequacy of the nature, extent and effectiveness of risk management,

management, financial and internal control systems, and to recommend any necessary improvements.

To recommend a programme of audit reviews of the key leadership, management and control processes underpinning the integrity and effectiveness of Ofgem.

To recommend a programme of audit reviews of the key financial and internal

controls underpinning the financial integrity of Ofgem

Generally, to review the statutory accounts and other published financial statements

and information and review arrangements established by management for compliance with regulatory and financial reporting requirements and specify any

necessary changes;

To challenge the Accounting Officer on any matter concerning the financial integrity

of Ofgem.

To review and advise as to the adequacy of risk management procedures and processes;

To review and advise as to the adequacy of ‘cyber-risk’, anti-fraud and “whistle-blowing‟ policies and processes, and the actions taken by the organisation in

response to adverse incidents;

To monitor relationships with external auditors, particularly to ensure that there are

no restrictions on the scope of the statutory audit and to review the activities, findings, conclusions and recommendations of the external auditors, including those

arising from external audit outputs other than those arising from the statutory audit of the accounts and the adequacy of management responses and specify any further actions required;

To recommend appointment of the Internal Audit Service provider and to approve the appointment of the Head of Internal Audit;

To monitor the effectiveness of the Internal and External Audit Services on an annual basis;

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To monitor actions taken to address weaknesses arising from assurance reports,

that have been brought to the attention of the Committee by any other Authority Committee or the Executive;

In relation to the Accounting Officer:

To review and advise him on his Governance Statement and the signing of the Annual Report and Accounts;

To review and advise him as to the adequacy of risk management procedures and processes;

To review and advise him as to the adequacy of anti-fraud and “whistle-blowing” policy and procedures.

In recommending a programme of audit reviews and work for the Committee, a risk

based approach will be undertaken, mindful of the volume and cost of reports. Audit

reports will be presented firstly to the Operations Board and Management Committee

meetings as part of the overall executive governance arrangements.

4. Meetings

The Committee shall meet at least three times a year. The Authority, the Accounting

Officer and Chair of the Committee, may request additional meetings, as they deem

necessary.

5. Access

The Head of Internal Audit and the representative of external audit will have free and

confidential access to the Chair of the Audit and Risk Assurance Committee.

6. Reporting Procedures

The Chair of the Committee shall report to the Chair of the Authority and, in relation to

matters affecting his role as Accounting Officer, to the Chief Executive and shall provide

a report to the next meeting of the Authority, and at such other times as the Chair may

consider appropriate. The report to the Authority will include the minutes of the

committee meetings.

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At the end of each financial year, the Chair of the Committee shall produce an annual

report for the Chair of the Authority and the Accounting Officer.

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Ofgem Remuneration and People Committee

Terms of Reference

1. Purpose

To advise the Ofgem Chief Executive, the Chair of Ofgem and Board as appropriate

on:

- Senior Civil Service remuneration;

- Strategic approaches to and policies on people-related issues that impact Ofgem's performance and success; and

- Structure, size and composition of the Board, taking account of skills, knowledge, experience and diversity.

2. Membership

The Committee shall have a minimum of two members, one of whom will be a Non-

Executive member of the Ofgem Board. The Board shall appoint the Chair and the

Chair of Ofgem shall appoint the other two members, together with, in attendance:

Chair of Ofgem

Chief Executive Officer


Deputy Director of Resources



3. Duties

To review terms and conditions of service including remuneration, allowances,

gratuities, early retirement and redundancy of:

- Chief Executive Officer

- Senior Leadership Team (SLT)

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- Such other persons as are agreed between the Chair of the Committee and the Chief Executive Officer.

To keep remuneration and reward policy under review having regard to

recruitment and retention, Cabinet Office guidance and any other

relevant guidance.

To agree the performance objectives of the Chair of Ofgem and advise them on

objectives for the Chief Executive Officer and other Senior Leadership Team

members.

To consider and keep under review succession plans for the Chief Executive

Officer, Senior Leadership Team and broader Senior Civil Servants / key roles as

appropriate.

To consider the skills mix required for a successful Ofgem and GEMA, and monitor

plans to achieve the appropriate skills mix.

To review and advise on organisational strategies for talent management,

performance management, and diversity.

To advise the Chief Executive Officer on organisational structure and culture as

required, and monitor the results of Ofgem's people surveys.

To keep under review the structure, size and composition of the Board and advise

the Chair of Ofgem on executive and other appointments as required.

To approve:

- Any outside appointment for serving Senior Leadership Team members

- Policy on Board member expenses

- The management of any conflicts of interest regarding Board members

- Arrangements for departure of SCS members, in compliance with Civil Service

rules.

To provide advice to the Chair of Ofgem, Chief Executive Officer or Board on any

other people related issues submitted to the Committee.

4. Meetings

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The Committee shall meet at least three times a year.

5. Authority

The Committee may seek such information as it requires and may employ legal or

other professional advisers to inform the exercise of its functions and duties.


As soon as practicable after each meeting of the Committee and at such other times

as the Committee may consider appropriate, the Chair of the Committee shall report to the Authority so far as the requirement for confidentiality permits. Executive

members of the Authority may be asked to leave the Authority meeting while this report is being given.

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E-SERVE BOARD

TERMS OF REFERENCE

1. Purpose

The purpose of the E-Serve Board is to:

- Monitor the effectiveness and efficiency of E-Serve in delivering its “relevant activities” and to provide assurance to the Authority on the performance of those activities. This includes ensuring that due regard is had to applicable rules and

standards relating to the proper use of public funds (e.g. Managing Public Money).

- Make recommendations to the Authority on key decisions affecting E-Serve,

including significant policy, strategic and operational aspects of E-Serve’s work.

- Take decisions on issues delegated to it by the Authority.

In these Terms of Reference, “relevant activities” are the current or proposed

functions of the Authority performed by E-Serve as amended by the Authority from

time to time. The current list of activities is provided in Annex A.

2. Duties

The main duties of the E-Serve Board shall be:

To review and recommend, for Authority approval, E-Serve’s strategy, and an

annual business plan and overall budget in respect of the relevant activities;

To agree annual objectives and targets for E-Serve;

To monitor the effectiveness and efficiency of E-Serve in delivering the relevant activities as planned and to provide assurance to the Authority or report any areas

of concern on a regular basis;

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To provide guidance to E-Serve management on significant cross-cutting matters that interact with the rest of Ofgem in relation to policy, strategic and operational

aspects of E-Serve’s development and implementation work;

To review and submit for Authority consideration and approval, proposals for significant new activities to be performed by E-Serve or major changes to existing activities which the Board considers are likely to stimulate significant stakeholder

debate, following consideration by Ofgem’s Performance and Delivery Board and after assessing its suitability and capability to perform such work, and to advise on

the manner in which the activities are to be performed;

To consider issues of scope between E-Serve and the rest of Ofgem and recommend

any significant proposals for change to the Authority for approval.

To review E-Serve risks, controls, delegations, governance, and processes relating

to the relevant activities and liaise with the Authority and the Audit and Risk

Assurance Committee and E-Serve Risk and Assurance Committee appropriately.


The Board shall have a minimum of three members, one of whom will be a Non-

Executive member of the Authority, together with, in attendance:

Chief Executive Officer


Director of E-Serve

General Counsel

Other individuals on an invitation basis, such as; representatives of BEIS and DfE



4. Delegated Powers

The Board shall have such delegated powers as the Authority may from time to time

approve.

5. Voting

Only members of the Board are entitled to vote, with decisions decided by a simple

majority. In the event of a tied vote, the Chair will have the casting vote.

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6. Meetings

The Board shall meet at least three times a year. Ad-hoc meetings, including conference

calls, may be arranged if there is an urgent operational requirement.

7. Conflict of Interest

Each Board member must provide advance notification to the Board Secretary if s/he

is aware of any actual or perceived conflict of interest in respect of any matter proposed

to be considered at a meeting.


The Chair of the E-Serve Board shall provide regular updates to the Chair of the

Authority, and to the Chair of the Audit and Risk Assurance Committee and the Chair

of the E-Serve Risk and Assurance Committee, as appropriate and on a regular basis,

and ensure that any matters representing a significant risk to the effective delivery of

any scheme delivered by E-Serve are escalated to the Authority as soon as practicable.

E-Serve shall provide a written report to the Authority on a regular basis. E-Serve Board

agendas and minutes will be made available to all Authority members.

9. Review of Terms of Reference

The E-Serve Board shall from time to time review its Terms of Reference, and make

any recommendations for proposed changes to the Authority.

Annex A – Relevant Activities undertaken by E-Serve

As at 12 September 2018, the following schemes, policies and support activities are

implemented and operated by E-Serve:

Renewable Heat – GB Domestic and Non-Domestic Renewable Heat Incentive

schemes, and NI Non-Domestic Renewable Heat Incentive scheme

Renewable Electricity – Renewable Obligation, Feed in Tariffs, REGO/NFFO

schemes, plus EMR support

Energy Efficiency and Social Schemes – Energy Company Obligation and

Warm Home Discount

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ENFORCEMENT DECISION PANEL

TERMS OF REFERENCE

1. Purpose

The Enforcement Decision Panel (‘EDP’) consists of employees of Ofgem specifically employed for EDP duties. Contested cases are decided on behalf of the

Authority by a decision-making Panel of usually three members appointed from

the EDP. Any one of the EDP members may also be appointed to form a

Settlement Committee with a member of Ofgem’s Executive.

2. Duties

The duty of a decision-making Panel (or, where appropriate, the relevant decision-

maker) is to consider relevant matters referred to it and to take decisions

concerning the following, set out in detail in the Ordinary Resolution dated June

20141:

- Decisions whether there is or is likely to be a contravention of any relevant

condition or requirement as defined in the Gas Act 1986 and/or Electricity Act

1989 and to:

confirm a provisional order;

make a final order; and/or

revoke a final order or a confirmed provisional order2,

(In each case, where appropriate, whether with or without modifications or in

whole or in part) under sections 25/26 Electricity Act 1989 and/or sections

28/29 Gas Act 1986;

- Decisions whether the conditions for imposing a penalty under section 30A Gas

Act 1986 and/or section 27A Electricity Act 1989 are made out and whether to

impose a penalty and its amount;

1 As amended/supplemented by Ordinary Resolutions of the Authority dated 14 May 2015 and 24 April 2019.

2 In accordance with the Ordinary Resolution of the Authority dated 24 April 2019, the following decisions do not

require EDP involvement: a) not to make a final order (unless the EDP has been previously engaged in respect of a

decision to issue a notice of proposal to make a final order); b) not to confirm a provisional order; and c) to revoke an

unconfirmed provisional order.

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- Decisions whether the conditions for making a consumer redress order under

section 30G Gas Act 1986 and/or section 27G Electricity Act 1989 are made out

and whether to make such an order and its form;

- Decisions whether there has been a breach of Chapter I / Chapter II

Competition Act 1998 / Article 101 and 102 the Treaty on the Functioning of

the European Union and where appropriate to impose directions under s32/s33

and/or to impose penalties under s36, and where appropriate 40A3,

Competition Act 1998;

- Decisions whether the conditions for imposing a penalty or issuing a statement

of non-compliance under regulation 26 Electricity and Gas (Market Integrity

and Transparency)(Enforcement etc) Regulations 2013 are made out and

whether to impose a penalty and its amount or issue a statement of non-

compliance;

- Decisions whether the conditions for requiring restitution under regulation 23

Electricity and Gas (Market Integrity and Transparency)(Enforcement etc)

Regulations 2013 are made out and whether to require restitution and its

amount; and

- Decisions whether the conditions for issuing or publishing a notice under

regulations 24-25, 30-31, and 37-39 Electricity and Gas (Market Integrity and

Transparency)(Enforcement etc) Regulations 2013 are made out and whether

to issue or publish a notice.

These decisions are to be taken having regard to applicable guidance.

3. EDP Chair, Panel selection, and meetings

A member of the EDP will be appointed as EDP Chair.

Each contested case4 will be heard by a decision-making Panel (‘Panel’) of usually three5 EDP members. The EDP Chair will select the Panel members to hear a

3 The EDP may exercise the power under Section 40A CA 98 where the failure to comply with a requirement has

occurred after the issue of a Statement of Objections.

4 An enforcement case is considered to be contested where an obligated party does not accept breaches put to it or

otherwise does not agree to a settlement. 5 In exceptional circumstances, and at the EDP Chair’s discretion, a panel of two may be considered quorate.

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contested case, taking into account member availability, skills and experience, and

any actual or perceived conflicts of interest in accordance with Section 8. Each

Panel will have a Panel Chair6, appointed by the EDP Chair. Each Panel will, in its

make-up, comply with the requirements of any relevant legislation.

Subject to the following provisions of this Section and of Sections 4 and 5 below,

decisions may only be taken when a Panel is in quorum. Quorum shall be

considered to be a Panel of three (the Panel Chair plus two additional EDP

members). In exceptional circumstances two Panel members may be deemed to

be quorate by the EDP Chair, in order to allow decisions to be progressed (e.g.

where a Conflict of Interest exists)7. Where an EDP member steps down from a

Panel ahead of the opportunity to make oral representations they may be replaced

by another EDP member selected by, and at the discretion of, the EDP Chair.

With the agreement of the Panel Chair, decisions of the Panel may be taken on

paper (e.g. by email exchange) or by conference call in appropriate circumstances.

Such circumstances may include, for example, dealing with ancillary matters,

where a member of a Panel is not able to attend in person or where there is an

urgent operational requirement.

EDP members also chair Settlement Committees. Any involvement in settlement

discussions on a particular case preclude that EDP member taking part in the same

case should it then be contested. An EDP member appointed to a Settlement

Committee may not therefore subsequently sit on a Panel considering the same

case.

The EDP as a whole shall meet, for training and knowledge sharing, as and when

required.

4. Decisions on final orders and provisional orders

In respect of decisions to be taken under paragraph a) of Section 2 above, the

EDP Chair may decide that they are suitable for determination by a single EDP

member or a Panel of two EDP members. In such a case, the EDP Chair may

appoint a single EDP member or a Panel of two EDP members to take the decision.

6 The EDP Chair may appoint themselves to a Panel as Panel Chair or as an ordinary member. 7 Decisions of the EDP shall be subject to the provisions on decision-making set out in the Enforcement Guidelines.

These set out that the Panel Chair shall have a casting vote in the event of deadlock.

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The Authority delegated such decisions by way of an Ordinary Resolution dated 24

April 2019.

5. Criminal prosecutions

The powers set out above are civil powers. In addition, the EDP Chair acting alone

and any legally qualified member of the EDP acting alone has the power to decide

whether the Authority should proceed with a criminal prosecution. The Authority

delegated this decision by way of an ordinary resolution dated 14 May 2015.

6. Authority oversight

The EDP Chair will meet with the Chair of the Authority at least once every six

months.

In addition, all EDP members will meet with the Authority annually when they will

report back on the activities of the EDP over that period.

7. Delegated authority

Each EDP member is authorised by the Authority through delegated authority. An

Ordinary Resolution of the Authority, passed for that purpose in accordance with

the Rules of Procedure, was agreed by the Authority on 12 June 2014. Subject to

the provisions of Section 4 above, EDP members may only take decisions under

that delegated authority when the Panel is quorate (see Section 3).

For the purpose of Section 5, the EDP Chair and EDP member are individually

authorised by the Authority through delegated authority. An Ordinary Resolution

of the Authority, passed for that purpose in accordance with the Rules of

Procedure, was agreed by the Authority on 14 May 2015. The EDP Chair or EDP

member(s) exercises that delegated power acting alone.

An Ordinary Resolution of the Authority was passed on 24 April 2019 relating to

decisions on final orders and provisional orders as summarised at Section 4 above.

8. Conflicts of Interest

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On appointment, EDP members must disclose any relevant interests in order to

fully comply with Ofgem policies and procedures on conflicts of interest. EDP

members also have an ongoing duty to keep the EDP Chair, and Ofgem, informed

of any further interests that they acquire or conflicts that they identify after their

appointment to the EDP.

Additionally, prior to selection to a Panel or Settlement Committee, EDP members

will be asked to confirm that there is no conflict of interest.

9. Annual Report The EDP Chair will provide the Authority with a report on an annual basis (see

Section 6) giving a commentary on cases considered in the previous year.

10. Revisions

These Terms of Reference of the EDP may be reviewed and altered from time to

time in accordance with the Authority’s Rules of Procedure.

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ENFORCEMENT (SETTLEMENT) COMMITTEE – COMPETITION ACT 1998 TERMS OF REFERENCE

1. Purpose

To decide whether to authorise a decision to follow a settlement procedure in

respect of an investigation under the Competition Act 1998 (“CA 98”) in the

circumstances referred to in Rule 9(1) of the Competition Act 1998 (Competition

and Markets Authority’s Rules) Order 2014 (the “CMA Rules”) and, where

applicable, to perform the functions of a “different relevant person” for the

purposes of Rule 9(2) of the CMA Rules (“Authorisation Decisions”).

2. Duties

To consider all matters relevant to making Authorisation Decisions

The matters referred to in paragraph 2.1 above shall include, but not be limited to,

relevant guidance of the Authority or the Competition and Markets Authority.

3. Membership and attendance

The Enforcement (Settlement) Committee – Competition Act 1998 (“the

Committee”) shall have a membership of three and shall be constituted when

required in relation to a specific investigation.

Two members of the Committee shall be members of the Enforcement Decision

Panel (“EDP”). Those members shall be nominated by the Chair of the EDP. The

Chair of the EDP shall additionally nominate one of those two members to act as

Chair of the Committee. The other member of the Committee shall be a Partner or

a Senior Partner of Ofgem nominated by the Chair of the Authority.

Authorisation Decisions may only be taken when the Committee is in quorum. All

three members are required to be present in order for any meeting of the

Committee to be quorate. In exceptional circumstances the.two members of the

Committee present may resolve the Committee to be quorate where there is only

one EDP member present and one Partner/Senior Partner present in order to allow

Authorisation Decisions to be progressed (e.g. where a nominated member of the

EDP is not present through incapacity). The fact and reason for any such decision

must be recorded and reported in the EDP annual report. All Authorisation

Decisions of the Committee must be achieved by majority vote. Where the

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Committee proceeds with a quorum of two, the EDP member will have a deciding

vote if there is deadlock.

4. Meetings

The Committee shall meet as and when required.

5. Authority

The Committee is authorised by the Authority in respect of the investigation

referred to it in accordance with these Terms of Reference to make Authorisation

Decisions.

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ENFORCEMENT (SETTLEMENT) COMMITTEES – RELEVANT CONDITIONS,

RELEVANT REQUIREMENTS, STATUTORY OBLIGATIONS, CONSUMER

PROTECTION LEGISLATION

TERMS OF REFERENCE

1. Purpose

To consider whether to authorise settlement agreements in respect of alleged

contraventions and reach a decision using the powers under Sections 25 and 27A, 27G

and 27H of the Electricity Act 1989 and/or under Sections 28, 30A, 30G and 30H of the

Gas Act 1986 and/or under regulations 23, 24, 25, 26, 30, 31, 38 of the Electricity and

Gas (Market Integrity and Transparency) (Enforcement etc.) Regulations 2013.

2. Duties

The duty of the Enforcement (Settlement) Committee (“the Committee”) is to consider

the possibility of settlement in respect of any relevant matter referred to it and to reach

a decision as to whether to take action under Sections 25, 27A, 27G and 27H of the

Electricity Act 1989 and/or under Sections 28, 30A, 30G and 30H of the Gas Act 1986

and/or under regulations 23, 24, 25, 26, 30, 31, 38 of the Electricity and Gas (Market

Integrity and Transparency) (Enforcement etc.) Regulations 2013, and if so what action

to take.


The Committee shall have a membership of three, of whom two shall be members of

the Enforcement Decision Panel (“EDP”). The EDP members shall be nominated by the

Chair of the EDP. The Chair of the EDP shall additionally nominate one of those two

members to act as Chair of the Committee. The other member of the Committee shall

be a Partner or a Senior Partner nominated by the Chair of the Authority.

Decisions may only be taken when the Committee is in quorum. All three members are

required to be present in order for any meeting of the Committee to be quorate. In

exceptional circumstances the two members of the Committee present may resolve the

Committee to be quorate where there is only one EDP member present and one Partner

or Senior Partner present in order to allow decisions to be progressed (e.g. where a

nominated member of the EDP is not present through incapacity). The fact and reason

for any such decision must be recorded and reported in the EDP annual report. Any

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decision of the Committee must be achieved by majority vote. Where the Committee

proceeds with a quorum of two, the EDP member will have a deciding vote if there is

deadlock.

4. Meetings


5. Authority

Each Committee is authorised by the Authority in respect of the particular case referred

to it to consider the matter referred to it and has delegated authority to make a decision

as to any action under the powers under Sections 25, 27A, 27G and 27H of the

Electricity Act 1989 and/or under Sections 28, 30A, 30G and to 30H of the Gas Act

1986 and/or under regulations 23, 24, 25, 26, 30, 31, 38 of the Electricity and Gas

(Market Integrity and Transparency) (Enforcement etc.) Regulations 2013 acting in

accordance with any published guidelines of the Authority on such matters.

1. Meetings


2. Authority

Each Committee is authorised by the Authority in respect of the particular case referred

to it to consider the matter referred to it and has delegated authority to make a decision

as to any action under the powers under Sections 25, 27A, 27G and 27H of the

Electricity Act 1989 and/or under Sections 28, 30A, 30G and to 30H of the Gas Act

1986 and/or under regulations 23, 24, 25, 26, 30, 31, 38 of the Electricity and Gas

(Market Integrity and Transparency) (Enforcement etc.) Regulations 2013 acting in

accordance with any published guidelines of the Authority on such matters.

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Committees of The Authority - Terms of Reference and Non ...€¦ · Markets Authority and their purpose, and the membership of its Members. The full terms of reference of each Committee

Documents