Responsibilities of ERCP
General information of ERCP work.
Economic regulation of airports
We are responsible for the economic regulation of airport operators that the CAA has determined has substantial market power under the Civil Aviation Act 2012 (CAA12).
In February 2014, we granted licences under the CAA12 to the operators of Heathrow Airport and Gatwick Airport which came into force on 1 April 2014. Airport economic licences include conditions on price controls, specifying the quality of the services the airport operator must deliver and how much it can charge from them. In relation to Stansted Airport Limited as the operator of Stansted Airport, in April 2013, we consulted on economic regulation (CAP1030). In early 2014, we found that the market power test in CAA12 is not met for both passenger airlines (CAP1135) and cargo services (CAP1153). These services will therefore not be subject to economic regulation from April 2014 onwards.
In addition, we manage the CAA's responsibilities with regards to Statutory Undertakers under section 39 of the Airports Act 1986 and the Traffic Distribution Rules 1991.
Economic regulation of NATS (En Route) plc (NERL)
We are responsible for the economic regulation of Air Traffic Management providers under the Transport Act 2000 (TA00). The Secretary of State for Transport granted NERL a licence under the TA00 on 28 March 2001. This licence include conditions relating to the maximum prices the regulated companies can charge for their services, the quality of that service, and financial and operational resilience, amongst other things.
Competition Policy
We manage the CAA's powers to enforce the Competition Act 1998, the Airports Charges Regulations 2011 and the Groundhandling Regulations 2018.
Documents governing how we perform our duties
We have published various documents that govern how we perform our duties.
- CAP1281 Stakeholder Consultation Responses to our Economic, Competition and Consumer Enforcement Guidance, May 2015
CAP1235 Guidance on the Application of the CAA’s Competition Powers, May 2015
In May 2015, after consultation, we published Economic Licensing Enforcement Guidance covering our approach to enforcing the airport economic licences and licences to provide air traffic services under the Transport Act 2000. The guidance outlines the legal framework in which our work fits and informs stakeholders of the enforcement powers we have and how we will use them.
- Economic Licensing Enforcement Guidance (May 2015)
After consultation, we also published prioritisation principles that explain our approach in deciding which pieces of work to take forward in the areas of consumer protection, competition law and economic regulation.
We have powers under the Civil Aviation Act 2012 to impose penalties for breach of a licence condition or breach of an enforcement order issued in relation to a licence condition. We may also impose penalties for non-compliance with information notices we have issued and for destroying information or knowingly supplying false information. We are required to publish a statement of policy on penalties for non-compliance under Chapter 1 of the Civil Aviation Act 2012 setting out the criteria we will use to determine whether a penalty is appropriate and the amount of any penalty.
- CAP1156 Our penalties statement (February 2014)
- CAP1018 Guidance on Consumer Enforcement, March 2016
An airport operator whose annual turnover at the airport exceeded £1m in at least two of the last three financial years may apply for a certificate that confers rights on the operator as a statutory undertaker. Airport operators who already have a permission to levy airport charges issued under section 39 of the Airports Act 1986 retain their status as a statutory undertaker.
- A note on the transition between the Airports Act and Civil Aviation Act (including a list of airports that have rights as statutory undertakings)
- A note on the information required in an application for a certificate