Explanatory note

This Order amends article 2(2) of the Postal Services Act (Determination of Turnover for Penalties) Order 2001 (“the principal order”).

The principal order specifies the way to determine the turnover of a licence holder for the purposes of section 30(2) of the Postal Services Act 2000 (which sets the maximum penalty that the Postal Services Commission (“the Commission”) may impose on a licence holder for contravention of a condition of his licence). The principal order does so by reference to the licence holder’s annual turnover and a multiplier based on the length of time that the Commission is satisfied that the contravention has lasted. Where this is more than one year, but less than two years, the multiplier is two. For a contravention lasting more than two years, the multiplier is three. No multiplier applies where the Commission is satisfied that the contravention has lasted for one year or less or for exactly two years.

The amendment made by this Order has the effect of introducing a multiplier of two where the Commission is satisfied that the contravention has lasted for exactly two years.