| Jurisdiction | UK Non-devolved |
| Citation | SI 2020/545 |
These Regulations may be cited as the Electronic Communications (Universal Service) (Costs) Regulations 2020 and shall come into force on 15th June 2020.In these Regulations—(1) When determining, under section 70(1) of the Act, the extent of the financial burden which exists for a particular designated universal service provider of complying in relation to any matter with any one or more of the universal service conditions applied to it, OFCOM must have regard to such of the matters set out in paragraph (2) as appear to them to be appropriate in that particular case.the costs incurred in complying with the relevant universal service conditions;the extent to which these costs were efficiently and necessarily incurred for the purpose of complying with the relevant universal service conditions;the revenues and any other direct benefits generated as a result of complying with the relevant universal service conditions;any indirect benefits that the universal service provider derives from its designation as a universal service provider and the compliance with the relevant universal service conditions;whether or not the universal service provider has made a request that OFCOM make a determination under section 70(1) of the Act and the sufficiency of information which has been provided to OFCOM together with that request; andany other matters which OFCOM consider to be relevant having regard to the facts and circumstances of the case.the universal service provider’s estimate of the financial burden of complying with the relevant universal service conditions;the calculations performed by the universal service provider in order to arrive at the estimate referred to in paragraph (a) ;the universal service provider’s explanation of the methodology adopted when performing the calculations referred to in paragraph (b) ;the accounts and any other information serving as the basis for the calculations referred to in paragraph (b) ;the universal service provider’s explanation of the steps taken to verify the accounts and any other information described in paragraph (d) ;the evidence that the costs of complying with the relevant universal service conditions were efficiently and necessarily incurred; andany other information which OFCOM consider to be relevant having regard to the facts and circumstances of the case.If a universal service provider requests that OFCOM make a determination under section 70(1) of the Act, that provider must provide the information described in regulations (1) When determining under section 71(2) of the Act whether it is or would be unfair for the universal service provider to bear, or to continue to bear, the whole or any part of so much of the burden of complying with one or more of the universal service conditions applied to it, OFCOM must have regard to such of the matters set out in paragraph (2) as appear to OFCOM to be appropriate in that particular case.the extent to which the universal service provider is subject to competition in relevant markets;the extent to which the universal service provider is constrained by regulation in relevant markets;the type and nature of the particular designation procedure set out in regulations made under section 66(1) of the Act which has been used for the designation of that universal service provider, including whether or not a competitive procedure has been used;the likely costs to OFCOM and other persons associated with establishing and operating a fund under these Regulations;any previous determinations under section 71(2) of the Act relating to the burden of complying with universal service conditions relating to the same universal service; andany other matters which OFCOM consider to be relevant having regard to the facts and circumstances of the case.(3) OFCOM must also have regard to any explanation provided by the universal service provider as to why that provider considers that it is, or would be, unfair for it to bear, or continue to bear, the whole or part of the financial burden of complying with the relevant universal service conditions.the provider must submit the application on or before the date falling two months after the date on which OFCOM announced the commencement of the review, under section 70(1) of the Act, of the extent of the financial burden which exists for that provider of complying in relation to any matter with any one or more of the universal service conditions applied to it; andbe made in writing to OFCOM;state that it is an application for a determination under section 71(3) (b) of the Act; andbe signed by a director of the universal service provider.OFCOM have determined, under section 71(2) of the Act, that it is or would be unfair for the universal service provider to bear, or continue to bear, the whole or part of the financial burden of complying with the relevant universal service conditions;the universal service provider has made an application under regulation 6 which meets the requirements set out in that regulation; andregulation 7(3) does not apply,any part of the amount to be compensated which has been compensated from F2public funds; andany part of the amount to be compensated which the universal service provider has waived its entitlement to under regulation 16.(3) Where it appears to OFCOM that F3public funds are to be committed to compensating the whole or part of the financial burden of complying with one or more of the relevant universal service conditions, OFCOM must postpone the determination of the amount to be collected until such time as the part of the amount to be compensated from central funds is known.
