Learndirect Limited v Environment Agency
[2023] UKFTT 561 (GRC)
Marshell Oil LLP v Environment Agency
6 November 2023
[2023] UKFTT 948 (GRC)
First-tier Tribunal
A company was fined £67,500 for not doing an energy audit. They appealed because they didn't get the initial warning letters, and the fine was too high. The judge agreed the fine was too high and reduced it to £20,000, even though the company appealed late.
Key Facts
- •Marshell Oil LLP appealed a £67,500 civil penalty imposed by the Environment Agency for non-compliance with ESOS regulations.
- •The appeal was submitted 70 days late.
- •The Appellant argued the penalty was unreasonable, citing mitigating factors and errors in the Agency's assessment.
- •The Appellant lacked UK staff and premises, leading to delays in receiving notices.
- •The Environment Agency maintained the penalty was correctly applied following its established policy.
Legal Principles
Appeals against civil penalty notices can be made on grounds of error of fact, law, or unreasonableness.
Regulation 48(1) of the Energy Savings Opportunity Scheme Regulations 2014
Tribunals can extend time limits for appeals unless it conflicts with other legislation.
Rule 5(3)(a) of the Tribunal Procedure (First-tier Tribunal) (General Regulatory) Rules 2009
Service of notices must accord with regulation 51 of the ESOS Regulations.
Regulation 51 of the Energy Savings Opportunity Scheme Regulations 2014
The Tribunal's role is to assess if the penalty was erroneous, not to determine what penalty it would impose.
Regulation 48(1) of the Energy Savings Opportunity Scheme Regulations 2014
A stepped approach to penalty calculation, based on the Definitive Guideline for the Sentencing of Environmental Offences, is reasonable.
Environment Agency's Enforcement and Sanctions Policy (ESP)
Outcomes
Appeal partially allowed.
The penalty was deemed unreasonable due to errors in assessing the Appellant's size and mitigating circumstances.
Appeal out of time accepted.
The Tribunal considered the Appellant's explanation for the delay, the Agency's lack of objection, and the significance of the penalty.
Civil penalty reduced to £20,000.
The Tribunal adjusted the penalty based on the correct assessment of the Appellant's size as a 'medium' organization at the time of the Notice and considered mitigating factors.