Harvey & Brockless Limited v The Environment Agency
[2023] UKFTT 849 (GRC)
Plastic Omnium Automotive Limited v The Environment Agency
12 February 2024
[2024] UKFTT 148 (GRC)
First-tier Tribunal
A company failed to meet its carbon reduction targets due to problems outside its control. The Environment Agency charged them a fee, and the company appealed. The judge said the fee was calculated correctly according to the rules of the agreement, and he couldn't change it, even though the company had problems. The appeal was rejected.
Key Facts
- •Plastic Omnium Automotive Ltd. appealed a £92,592 buy-out fee imposed by the Environment Agency for failing to meet carbon emission reduction targets under a Climate Change Agreement.
- •The failure to meet targets was attributed to supply chain disruptions (chip shortage, Russian invasion of Ukraine).
- •The buy-out fee was calculated according to a pre-agreed formula within the Climate Change Agreement.
- •The appellant argued the fee was unreasonable due to unforeseen circumstances beyond their control.
- •The appeal was based on the unreasonableness of the decision (section 13.4.3 of the Agreement).
Legal Principles
Right of appeal against a buy-out fee under the Climate Change Agreements (Administration) Regulations 2021 and the underlying Climate Change Agreement.
Climate Change Agreements (Administration) Regulations 2021, Regulation 20(3); Rule 13.1.2 of the Climate Change Agreement for the Surface Engineering Sector
Grounds for appeal include errors of fact, errors of law, unreasonableness, and any other reason.
Climate Change Agreements (Administration) Regulations 2021, Regulation 21; Rule 13.4 of the Climate Change Agreement
Tribunal's powers on appeal are limited to affirming, quashing, or varying the decision; no discretion to reduce a buy-out fee calculated by a pre-agreed formula.
Environment Agency v Amphenol Invotec Ltd [2022] UKUT 318 (AAC); Environment Agency v Taylor Engineering and Plastics Ltd [2022] UKUT 317 (AAC); Regulation 23(1), 23(4); Rule 13.6
Outcomes
Appeal dismissed.
The Tribunal lacked the power to reduce the buy-out fee because the Environment Agency had no discretion in its calculation, and the Tribunal's powers do not exceed those of the Agency. The Tribunal is bound by precedent establishing this principle.