Commentary on provisions of Act Section 20: Power of Secretary of State to enforce compliance with designated vendor directions etc. Section 105Z19: Amount of penalty
Subsection (1) requires a penalty specified under section 105Z18 to be appropriate and proportionate. The maximum amount is 10 percent of the turnover of the person’s relevant business for the relevant period (subsection (2)), or, in the case of a penalty for a continuing contravention imposed under section 105Z18(7), £100,000 per day (subsection (3)).
	Subsection (4) states that where the provider has contravened a requirement to provide a plan under section 105Z7, the maximum penalty is £10 million or, in the case of a continuing contravention, £50,000 per day.
	Subsections (5) and (6) state that the Secretary of State may by regulations amend the maximum fixed and daily penalty amounts set out in this section by laying a draft of the regulations before Parliament, which needs to be approved by each House.
	Subsection (7) states that for the purpose of calculating penalty amounts, the turnover of a person’s relevant business for a specific period and what is to be treated as the relevant business are to be determined in accordance with the rules set out by order of the Secretary of State under section 97(3)(a) of the 2003 Act. Section 97(3)(a) provides that the turnover of a person’s business shall be calculated in accordance with such rules as may be set out by order made by the Secretary of State.
	Subsection (8) provides definitions for ‘relevant business’ and ‘relevant period’.