Road Fuel Pricing (Equalisation) Bill (HC Bill 157)

1 Requirement to provide information about road fuel prices

(1) Where the Competition and Markets Authority (“the CMA”) is made aware of
evidence that the price charged by a retailer of road fuels in any given
wholesaler‘s region for the same road fuel is higher at road fuel retailing sites
5in rural areas than at those in urban areas in that wholesaler’s region (a “price
discrepancy”), the CMA must require the road fuel retailer concerned to
provide the CMA with information explaining the reasons for the difference in
the prices charged.

(2) In the case of an overlap between two wholesalers’ regions, the CMA shall
10determine which wholesaler’s region is the relevant region for determining a
price discrepancy.

(3) Information required under subsection (1)—

(a) may be provided either in writing or in person to authorised officers of
the CMA;

(b) 15must be provided within 14 days of the notice of requirement being
received, unless the CMA makes provision for a different deadline.

(4) Evidence of a kind mentioned in subsection (1) may be provided to the CMA
by individuals, organisations representing consumers and organisations
representing industry.

(5) 20A person submitting evidence under subsection (1) must provide a record of
price discrepancy over a minimum period of time if required to do so by the
CMA.

(6) The minimum period of time for the purposes of subsection (4) must be
defined by the Secretary of State by order made by statutory instrument.

(7) Where a company fails to provide information to the CMA under subsection
(1), the CMA may impose a fine on the company of a maximum of £10,000 for
each day of delay beyond the deadline set under subsection (3)(a).

2 Requirement on the CMA to intervene

5If the CMA, having reviewed information provided under section 1(1),
determines that a discrepancy in road fuel prices charged by a company is an
abuse of a dominant position under section 18 of the Competition Act 1998, or
determines that a company has submitted misleading information under
section 1(1), it must publish a notice to that effect.

3 10Requirement on companies which are the subject of a notice under section 2

(1) When a notice of determination has been published under section 2, the
company concerned must, within 14 days of the publication of the notice, set a
single price for its retail fuel prices equivalent to the lowest national retail price
charged by the company on the day the fine was imposed, for 30 days.

(2) 15The CMA may impose a different price equalisation value should there be
fluctuation in wholesale prices in the period between the date of the offence
and the publication of the notice of determination.

(3) The single price mentioned in subsection (1) shall be set so as to ensure
equalisation between rural and urban fuel prices for the 30 day period.

4 20Penalties

(1) The CMA shall impose a fine on a company which is the subject of a notice
under section 2 and which has failed to meet the requirement set out in section
3.

(2) The level of the fine to be imposed under subsection (1) shall be calculated in
25the following manner—

with all variables in pence Sterling, where

• “F is the fine imposed on the company;

• 500000p is the level 5 fine in the Statutory Set of Levels specified in
  30section 17(1) of the Criminal Justice Act (1991);

• c is the average price charged by the company as evidenced under
  sub-section 1(1); and

• a is the acceptable price for the wholesale region as defined in
  section 6.”

5 35Review of penalties

(1) The CMA must review the system of fines mentioned in section 4 every three
years to assess whether the objectives of this Act are being met, and must
report the outcome of the review to the Secretary of State.

(2) If in the opinion of the Secretary of State the system of fines imposed under this
40Act has failed to achieve the objectives of the Act, the Secretary of State shall
make a new system of fines by order made by statutory instrument.

6 Definitions

(1) The Secretary of State must make regulations made by statutory instrument
defining the terms “urban area”, “rural area” and “wholesaler’s region” for the
purposes of this Act.

(2) 5The CMA shall determine—

(a) what constitutes sufficient evidence from an individual for the
purposes of section 1.

(b) what is an “acceptable price” for a particular wholesale region taking
into account information about the range of prices charged in that
10region, including but not limited to information provided to it under
section 1(1).

7 Regulations

A statutory instrument containing an order or regulations under this Act is
subject to annulment in pursuance of a resolution of either House of
15Parliament.

8 Short title, commencement and extent

(1) This Act may be cited as the Road Fuel Pricing (Equalisation) Act 2015.

(2) This Act comes into force at the end of the period of three months beginning
with the day on which it is passed.

(3) 20This Act extends to England, Wales, Scotland and Northern Ireland.