Overview

This bill aims to address price discrepancies in road fuel between rural and urban areas in the UK. It requires companies to provide information on pricing differences and empowers the Competition and Markets Authority (CMA) to intervene if prices are deemed unfairly high in rural areas, potentially resulting in penalties for non-compliance.

Description

The bill mandates that fuel retailers provide the CMA with information explaining price differences between rural and urban areas within 14 days of being requested. The CMA will review this information and, if finding an abuse of a dominant position or misleading information, will publish a notice. Companies named in the notice must then equalize fuel prices nationwide at the lowest national price for 30 days. Failure to comply results in fines, calculated using a formula based on the average charged price and an "acceptable price" determined by the CMA. The CMA must review the penalty system every three years and report to the Secretary of State, who may alter it if necessary. The Secretary of State will also define "urban area," "rural area," and "wholesaler's region" through statutory instruments.

Government Spending

The bill doesn't directly specify government spending. However, the CMA will incur costs associated with investigation, enforcement, and review. The potential for increased fines collected will likely contribute to government revenue. The bill does not contain estimates of the actual costs or revenue changes.

Groups Affected

• Fuel Retailers: Potentially affected by increased costs through fines for non-compliance with price equalization.
• Consumers in Rural Areas: Could see a reduction in fuel prices if the bill is successful.
• Consumers in Urban Areas: Could see a slight increase in fuel prices if the bill results in price equalization at the lowest national price.
• The Competition and Markets Authority (CMA): Will bear increased administrative and enforcement responsibilities.
• Secretary of State: Responsible for defining key terms and reviewing the penalty system.

Powered by nyModel