Select Committee on Regulatory Reform Seventh Report

Impact Assessment

25.  The Department estimates that the Order will result in savings of £615,000 per annum. Details are provided in Annex C of the Explanatory Document.

26.  Local authorities estimate that they will lose £525,000 per annum from the loss of fees which they currently charge for verification services.[16] The Department points out that those fees are merely intended to cover the cost of providing the service. In addition, as a result of the changes which were introduced by the 1999 Order, local authorities receive annual funding to compensate for the loss of verification fee income and the burden of increased inspections needed to check work carried out by approved verifiers. This figure was originally calculated to include changes resulting from self-verification after adjustment.[17] Despite the later interpretation of section 11A, whereby self-verification after adjustment is not permitted, the method of calculation has not changed.

27.  The estimated costs savings in the Impact Assessment will therefore benefit petrol retailers significantly, with approved verifiers also expected to receive some benefit.

16   ED p44, Annex C para 5.2. See also the responses detailed in ED p 25 Annex B para 42 Back

17   ED p26, Annex B para 45 Back

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