Impact assessment

Summary of non-qualifying regulatory provisions under the Business Impact Target (BIT): 2019 to 2020

Updated 15 December 2022

The Coal Authority’s non-qualifying regulatory provisions listed by exclusion category in the BIT reporting period 13 December 2019 to 12 December 2020

For the full, legal definitions of the exclusion categories see BIT: June 2018 statement.

1. EU and international

The Coal Authority was established under the Coal Industry Act 1994 (CIA 1994) and has certain regulatory duties relating to the licensing of mining operations under the CIA 1994. Under the Coal Mining Subsidence Act 1991 it shall be the duty of the Coal Authority to take in respect of subsidence damage any property remedial action.

Following consideration of the exclusion category there are no measures for the reporting period that qualify for the exclusion.

2. Economic regulation

Part 2 of the CIA 1994 deals with the licensing of coal mining. By CIA 1994, section 2(1):

“It shall be the duty of the Coal Authority to carry out its functions under Part II of this Act in the manner that it considers is best calculated to secure, so far as practicable

(b) that such persons are able to finance both the proper carrying on of the coal-mining operations that they are authorised to carry on and the discharge of liabilities from the carrying on of those operations; […]”

(c) that persons to whom obligations are owed in respect of subsidence damage caused at any time (whether before or after the passing of the Act) do not sustain loss in consequence of any failure by a person who is or has been a licensed operator to make such financial provision for meeting present and future liabilities as might reasonably have been required of that person.

One new underground mining conditional licence has been granted in November 2019 therefore following consideration of this exclusion category there are no measures for the reporting period that qualify for the exclusion.

3. Price control

Pricing mechanisms and charges have not been reviewed or amended or increased and details of the existing pricing mechanisms are available on the authority’s website together with the format and content of the licensing documentation.

These documents have been static for a number of years due to the decrease in mining activities and limited number of licenced mining operations currently in force.

Following consideration of this exclusion category there are no measures for the reporting period that qualify for the exclusion.

4. Civil emergencies

No new legislation of this nature currently affects the operations of the Coal Authority.

Following consideration of this exclusion category there are no measures for the reporting period that qualify for the exclusion.

5. Fines and penalties

Security for the financing of mining operations falls part of the licensing regime and are governed by the CIA 1994. No fines and penalties are applicable to the licensing regime.

Following consideration of this exclusion category there are no measures for the reporting period that qualify for the exclusion.

6. Pro-competition

There are currently 3 active surface mines, 2 at planning stage. There are 7 active underground, 2 licenced but non-operational, 2 underground mines in the planning stage.

One new underground conditional licence has been granted in November 2019 which was advertised via a newsletter.

Therefore following consideration of this exclusion category there are no measures for the reporting period that qualify for the exclusion.

7. Large infrastructure projects

Following consideration of this exclusion category there are no measures for the reporting period that qualify for the exclusion.

8. Misuse of drugs/national minimum wage

Following consideration of this exclusion category there are no measures for the reporting period that qualify for the exclusion.

9. Systemic financial risk

Following consideration of this exclusion category there are no measures for the reporting period that qualify for the exclusion.

10. Industry codes

One new licence has been granted to a mining operator during the reporting period.

Following consideration of this exclusion category there are no measures for the reporting period that qualify for the exclusion.

11. Casework

There are currently 3 active surface mines and 2 at planning stage. There are 7 active underground, 2 licenced but non-operational and 2 underground mines in the planning stage.

Following consideration of this exclusion category there are no measures for the reporting period that qualify for the exclusion.

12. Education, communications and promotion

Guidance notes for applicants and application forms have been updated during the period, however, no promotional literature or best practice documentation has been created or produced during this reporting period in respect of the regulated activity of licensing mining operations.

Following consideration of this exclusion category there are no measures for the reporting period that qualify for the exclusion.

13. Activity related to policy development

An updated licensing enforcement policy has been drafted and advertised on our website in November 2019. Additional guidance has been provided around the provision of information and sanctions.

Following consideration of this exclusion category there are no measures for the reporting period that qualify for the exclusion.

14. Changes to management of regulator

Following consideration of this exclusion category there are no measures for the reporting period that qualify for the exclusion.