Paragraph 14 Non-compliance penalties

(1)

SEPA may impose a non-compliance penalty on a person who fails to comply with a VMP undertaking which is accepted from the person.

(2)

A “non-compliance penalty” is a requirement to pay SEPA an amount calculated in accordance with sub-paragraph (3).

(3)

The amount of the non-compliance penalty is to be determined by SEPA and, subject to sub-paragraph (4), must be—

(a)

an amount equivalent to 140% of the variable monetary penalty which SEPA would have imposed by final notice had the undertaking not been accepted; or

(b)

a lesser amount, where SEPA considers there are exceptional circumstances justifying it.

(4)

The maximum amount of the non-compliance penalty that may be imposed in any case is the same as the maximum amount of a variable monetary penalty which would apply in that case in accordance with paragraph 1(4).

(5)

Where a decision is taken to impose a non-compliance penalty, SEPA may do so by serving a non-compliance penalty notice.

(6)

A non-compliance penalty notice must include information as to—

(a)

the grounds for imposing the non-compliance penalty;

(b)

the amount of the penalty;

(c)

how payment may be made;

(d)

the period within which payment must be made;

(e)

late payment interest;

(f)

rights of appeal; and

(g)

the consequences of non-payment.