The Electronic Communications (Networks and Services) (Penalties) (Rules for Calculation of Turnover) Order 2003

S.I. 2003/2712 · Made 22 October 2003 · Extends to United Kingdom

ELECTRONIC COMMUNICATIONS

Made 22nd October 2003

Coming into force 27th October 2003

Whereas a draft of this Order has been laid before Parliament in accordance with section 97(4) of the Communications Act 2003^f1;

And whereas the said draft as so laid has been approved by resolution of each House of Parliament;

Now therefore the Secretary of State in exercise of the powers conferred on her by sections 97(3)(a) and 402(3)(a) of the Communications Act 2003 hereby makes the following Order:

Annotations to the whole text

Footnotes

f1: 2003 c. 21.

1Citation and commencement
2Interpretation
3Rules for Calculation of turnover for the purposes of section 97
Signature
Schedule: RULES FOR CALCULATION OF TURNOVER FOR PURPOSES OF SECTION 97
1General rules
2General rules
3General rules
4Rules about aids granted ...
Explanatory note

1Citation and commencementI1

This Order may be cited as the Electronic Communications (Networks and Services) (Penalties) (Rules for Calculation of Turnover) Order 2003 and shall come into force on 27th October 2003.

2InterpretationI1

In this Order:

“the Act” means the Communications Act 2003; F1...
F2...

3Rules for Calculation of turnover for the purposes of section 97I1

The rules for the calculation of turnover of a F1person’s relevant business for a relevant period for the purposes of section 97 of the Act shall be the rules set out in the Schedule to this Order.

Signature

Stephen Timms,

Minister of State for Energy, E-Commerce and Postal Services

Department of Trade and Industry

1General rulesI1

F1A person’s turnover shall be calculated in conformity with accounting practices and principles which are generally accepted in the United Kingdom.

F1A person’s turnover shall be limited to the amounts derived by F2that person from the relevant business after deduction of sales rebates, value added tax and other taxes directly related to turnover.

3General rulesI1

When a F1person’s relevant business consists of two or more undertakings that each prepare accounts then the turnover shall be calculated by adding together the turnover of each, save that no account shall be taken of any turnover resulting from the supply of goods or the provision of services between them.

4Rules about aids granted ...F7 I1

F1(1)

Any aid F2... granted by a public body to a F3person which relates to one of F4that person’s ordinary activities shall be included in the calculation of turnover if the person is himself the recipient of the aid and if the aid is directly linked to the carrying out by F5that person of the relevant business.

F6(2)

In this paragraph “aid” means a measure which—

(a)

fulfils the conditions set out in Article 1.1 of the Agreement on Subsidies and Countervailing Measures contained in Annex 1A to the WTO Agreement, and

(b)

is specific within the meaning of Article 2 of that Agreement, irrespective of whether the recipient deals in goods or services.

Explanatory note

(This note is not part of the Order)

This Order sets out rules governing the way in which the turnover of a notified provider of electronic communications networks, services, facilities, or apparatus should be calculated for the purposes of section 97 of the Communications Act 2003.

A notified provider is a person in respect of whom OFCOM have given a notification under section 94 that there are reasonable grounds for believing that that person is contravening, or has contravened, a condition set under section 45. Conditions set under section 45 are general conditions, universal service conditions, access-related conditions, privileged supplier conditions and significant market power conditions.

Where OFCOM determine that a notified provider is in contravention of a condition specified in the notification, they may impose, on that provider, a penalty of up to 10 per cent of the turnover of the provider’s relevant business.