GCA rates for cost-recoverable activity
Updated 1 April 2024
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1. Outline
This paper sets out the rates applied by the Groceries Code Adjudicator (GCA) for cost-recoverable activity and is updated from time to time.
2. GCA activity covered by this policy
The GCA may recover reasonable costs incurred during:
- investigations, where a designated retailer (Retailer) is found to have breached the Groceries Supply Code of Practice (the Code), or where the investigation is launched as a result of a complaint which is found to be vexatious or wholly without merit
- enforcement activity as a result of an investigation where a breach has been found
- arbitrations, as the reasonable costs of the arbitrator
The same rates will be applied for each.
3. The rates to be applied
3.1 2024/25 charging rates
| Personnel involved | Hourly rate |
|---|---|
| Adjudicator | £139 |
| GCA team | £33– 83 (depending on Civil Service grade) |
| Arbitration secretary (externally sourced) | Variable, depending on the source of the arbitration secretary |
| External legal advice | Variable, depending on the source of legal advice |
These rates reflect the actual time spent by the GCA office on undertaking the activity with an uplift to enable the GCA to sufficiently recover additional overhead costs over and above direct staff costs incurred as a result of the work undertaken.
The cost for an arbitration secretary apply to arbitrations only.
Depending on the complexity of an arbitration or investigation, the GCA may need to procure external legal advice. The hourly rates for this will depend on the source of that advice and the seniority of the lawyers involved.
The GCA will review these rates on an annual basis.
4. Legal basis for recovery of costs
4.1 Investigations
The costs of an investigation may be recovered under s.10 of the Groceries Code Adjudicator Act 2013 (the GCA Act).
The GCA may require a Retailer to pay some, or all, of the costs of an investigation, including any costs incurred in exercising enforcement powers, if the GCA finds that the Retailer acted in breach of the Code.
The GCA may require another person to pay some, or all, of the costs of an investigation if the GCA finds that a complaint made by that person, which led to the investigation, was vexatious or wholly without merit. This situation is unlikely to arise because:
-
of the way the GCA has stated the prioritisation principles will be applied in deciding whether to launch any investigation
-
a single complaint is highly unlikely to ground an investigation (see the statutory guidance on how the GCA will carry out investigation and enforcement functions).
The GCA will issue a written notice under s.10 of the GCA Act to a Retailer required to pay some or all of the costs of an investigation, including any costs incurred in exercising enforcement powers. This will specify the grounds for imposing the requirement to pay costs, how much is to be paid and by when the costs are to be paid.
More than one s.10 notice may be issued in respect of a single investigation, e.g., to coincide with publication of the report of the investigation and thereafter, to recover costs associated with publication, enforcement, monitoring and any document retention, destruction or transfer post-dating publication. In each notice, it will be made clear what type of activity has been undertaken, for how many hours in total over the period covered and what rate has been applied.
4.2 Arbitrations
The reasonable costs of an arbitrator are recoverable from the parties to the arbitration under the Arbitration Act 1996.
The Groceries (Supply Chain Practices) Market Investigation Order 2009 provides that all costs of the arbitrator will be met by the Retailer, unless the arbitrator decides that the supplier’s claim was vexatious or wholly without merit, in which case costs will be assigned at the arbitrator’s discretion. All other costs of the arbitration will be assigned at the arbitrator’s discretion.
Costs will be dealt with in the final award made in any arbitration. If an arbitration brought to the GCA is settled by the consent of the parties, a final award will nonetheless be required to record this resolution of the dispute, to discharge the GCA’s duties as arbitrator and to make provision for GCA costs, if appropriate.