Key Facts
- •Elizabeth Arden (UK) Ltd (Appellant) appealed a penalty notice issued by the Environment Agency (Respondent) for non-compliance with the Energy Savings Opportunity Scheme (ESOS) Regulations 2014.
- •The Appellant's registered office was closed due to the COVID-19 pandemic, resulting in non-receipt of initial notices.
- •Subsequent notices were sent to consumer email addresses, which were not designated for official communications.
- •The Penalty Notice was served via email to the Appellant's consultant.
- •The Appellant argued ineffective service and unreasonableness of the penalty.
Legal Principles
Service of notices must comply with the regulations.
ESOS Regulations 2014, Regulations 35, 38, 39, 51
Notices served by post require proof of posting.
Interpretation Act 1978, section 7
Email service must be to an address provided in accordance with Schedule 3 of the Regulations.
ESOS Regulations 2014, Regulation 51, Schedule 3
A penalty notice is wrong in law if not properly served.
ESOS Regulations 2014, Regulation 48(1)(b)
An appeal body can cancel a penalty notice if it was unreasonable.
ESOS Regulations 2014, Regulation 50(a)
Outcomes
The appeal was allowed.
The penalty notice was not effectively served due to failure to comply with the service requirements in the Regulations. The email service was to an inappropriate address, and there was no evidence of proper postal service.
The penalty notice was cancelled.
The service was ineffective and the notice was wrong in law.