Communications Regulation (Postal Services) Act 2011

Chapter 5

Financial support for universal postal service provision

Net cost of provision of universal postal service.

35.— (1) A universal postal service provider, designated under section 17 or 18 , which seeks to receive funding for the net costs (if any) of providing a universal postal service may submit a request in writing to the Commission.

(2) A request under subsection (1) shall be—

(a) made in such form and manner as the Commission determines,

(b) submitted no earlier than after the end of the first financial year immediately following the designation under section 17 or 18 and thereafter no later than 6 months after the accounts for the financial year concerned have been audited, unless the Commission agrees otherwise, and

(c) accompanied by such supporting information as may reasonably be required by the Commission for the purposes of subsection (4).

(3) Where a request is made under subsection (1), the Commission may require, in writing, the universal postal service provider concerned to give to the Commission such additional information as the Commission specifies in the requirement for the purposes of subsection (4) within 21 days from the date of the requirement or such longer period as the Commission may specify.

(4) The Commission shall, on the basis of the information given to it under subsection (2) and any additional information given to the Commission under subsection (3), determine whether the provision of a universal postal service by the universal postal service provider concerned—

(a) represents a net cost to the universal postal service provider in the period to which the request made under subsection (1) relates, taking into account any market benefit which accrues to the universal postal service provider, calculated in accordance with Annex I to the Directive, the text of which Annex is, for ease of reference set out in Schedule 4 , and

(b) in the opinion of the Commission, represents an unfair financial burden on the universal postal service provider.

(5) For the purpose of making a determination under subsection (4), the Commission shall—

(a) take into account—

(i) the methodology used by the universal postal service provider with respect to the information given to the Commission under this section,

(ii) the extent to which the universal postal service provider is, in the Commission’s opinion, complying with the obligations imposed on it by or under the Communications Regulation Acts 2002 to 2011 relating to the provision of a universal postal service in a cost-efficient manner, and

(iii) any other information which the Commission considers relevant,

and

(b) as appropriate—

(i) audit or verify, or

(ii) appoint a person possessing, in the opinion of the Commission, the requisite qualifications and degree of independence from the universal postal service provider, to audit or verify,

the calculation of the net cost referred to in subsection (4).

(6) The Commission shall, subject to the protection of any information which it considers confidential (within the meaning of section 24 of the Principal Act), publish the conclusions of any audit or verification undertaken pursuant to subsection (5)(b).

(7) The Commission shall notify the universal postal service provider in writing of its determination as soon as practicable.

(8) Where the Commission determines that the universal postal service provision does not represent an unfair financial burden it shall notify the universal postal service provider of the reasons for the determination as soon as practicable after the determination is made.