Communications Act 2003

[F1 Social tariff conditions U.K.

Textual Amendments

F1 Ss. 72C-72I and cross-heading inserted (21.12.2020) by The Electronic Communications and Wireless Telegraphy (Amendment) (European Electronic Communications Code and EU Exit) Regulations 2020 (S.I. 2020/1419), reg. 1(2), Sch. 1 para. 29 (with reg. 6)

72D Social tariff conditions: procedure U.K.

(1) The Secretary of State may direct OFCOM—

(a) to review the affordability of qualifying services for individuals on low incomes or with special social needs, with a view to considering whether to recommend to the Secretary of State the setting of a social tariff condition; and

(b) to report to the Secretary of State on the results of the review.

(2) OFCOM may in their report recommend—

(a) the setting of a social tariff condition to be applied—

(i) generally to every person providing a public electronic communications service;

(ii) generally to every person providing a public electronic communications service of a particular description specified in the report; or

(iii) to a particular person (or particular persons) specified in the report; or

(b) the modification or revocation of a social tariff condition.

(3) OFCOM may recommend the application of a social tariff condition to a particular person (or particular persons) specified in their report only in exceptional circumstances, in particular where the application of a social tariff condition to all providers of public electronic communications services of a particular description would result in an excessive administrative or financial burden on those providers, on OFCOM or on any government department.

(4) The Secretary of State may give guidance to OFCOM as to the matters to which OFCOM are to have regard—

(a) in carrying out a review under subsection (1)(a); and

(b) in making a recommendation under subsection (2).

(5) OFCOM must not recommend the setting or modification of a social tariff condition unless they are satisfied that the condition or (as the case may be) the modification satisfies the test in section 47(2).

(6) Where section 72E does not apply to the recommendation because of subsection (2) of that section—

(a) the recommendation must relate to a social tariff condition that is to be temporary, or to a temporary modification or revocation;

(b) the recommendation must state the period for which it is proposed that the condition, or the modification or revocation, should have effect; and

(c) section 72E does not apply in relation to any recommendation by OFCOM in relation to the extension or making permanent of the temporary condition, modification or revocation.

(7) The Secretary of State may direct OFCOM to implement any recommendation made under subsection (2).

(8) The Secretary of State must publish—

(a) a direction given under subsection (1) or (7); and

(b) guidance given under subsection (4).

(9) OFCOM must publish any report made under subsection (1)(b).

(10) In this section “qualifying services” has the same meaning as in section 72C.

72E Consultation by OFCOM on proposed recommendation U.K.

(1) This section applies where—

(a) OFCOM propose to recommend the setting, modification or revocation of a social tariff condition; and

(b) the implementation of the proposed recommendation would, in OFCOM’s opinion, have a significant impact on a market for any of the services, facilities, apparatus or directories in relation to which they have functions under this Chapter.

(2) But this section does not apply where in OFCOM’s opinion—

(a) there are exceptional circumstances; and

(b) there is an urgent need to act in order to safeguard competition and to protect the interests of consumers.

(3) OFCOM must publish a notification—

(a) stating that they are proposing to recommend the setting, modification or revocation of the social tariff condition specified in the notification;

(b) setting out the effect of that condition, modification or revocation;

(c) giving their reasons for proposing the recommendation; and

(d) specifying the period within which representations may be made to OFCOM about their proposal.

(4) That period must end no less than 30 days after the day of the publication of the notification.

(5) But where OFCOM are satisfied that there are exceptional circumstances justifying the use of a shorter period, the period specified as the period for making representations may be whatever shorter period OFCOM consider reasonable in those circumstances.

(6) OFCOM must consider every representation about the proposal made to them during the period specified in the notification.

(7) The publication of a notification under this section must be in such manner as appears to OFCOM to be appropriate for bringing the contents of the notification to the attention of such persons as OFCOM consider appropriate.

72F Social tariff conditions: general U.K.

(1) The only provision that may be contained in a social tariff condition set under section 45 is provision requiring the use in relation to a qualifying service, in such cases as may be specified or described in the condition, of such social tariffs as may be so specified or described.

(2) For this purpose a “social tariff” is a special tariff that differs from the tariff provided under normal commercial conditions and is available to an individual who meets criteria relating to low income or special social needs.

(3) A social tariff condition may not be set, modified or revoked under section 45 except in accordance with a direction under section 72D(7).

(4) Subsection (3) does not apply to modifications that in the opinion of OFCOM—

(a) relate only to matters of administration; and

(b) are minor in character.

(5) If by virtue of subsection (4) OFCOM modify a social tariff condition under section 45 in the absence of a direction under section 72D(7), they must, when publishing a notification of the modification under section 48(1), send a copy of the notification to the Secretary of State.

(6) In this section “qualifying service” and “tariff” each has the same meaning as in section 72C.

72G Review of compliance costs: social tariff conditions U.K.

(1) OFCOM may from time to time review the extent (if any) of the financial burden for a particular communications provider of complying in relation to any matter with a social tariff condition applied to the provider.

(2) The financial burden of so complying is to be taken to be the amount calculated by OFCOM to be the net cost of compliance after allowing for market benefits accruing to the communications provider from the application to the provider of the social tariff condition.

(3) After carrying out a review under this section OFCOM must either—

(a) cause the calculations made by them on the review to be audited by a person who appears to them to be independent of the communications providers who are subject to the social tariff condition; or

(b) themselves carry out an audit of those calculations.

(4) OFCOM must ensure, in the case of every audit carried out under subsection (3), that a report on the audit—

(a) is prepared; and

(b) if not prepared by OFCOM, is provided to them.

(5) It shall be the duty of OFCOM, in the case of every review under this section, to publish—

(a) their conclusions on the review; and

(b) a summary of the report of the audit which was carried out as respects the calculations made for the purposes of that review.

(6) The publication of anything under subsection (5) must be a publication in such manner as OFCOM consider appropriate for bringing it to the attention of the persons who, in their opinion, are likely to be affected by it.

72H Sharing of burden of social tariff obligations U.K.

(1) This section applies where OFCOM—

(a) have concluded, on a review under section 72G, that complying in relation to any matter with social tariff conditions imposes a financial burden on a particular communications provider (“the social tariff provider”); and

(b) have published that conclusion in accordance with that section.

(2) OFCOM must determine, in the case of the social tariff provider, whether they consider it would be unfair for that provider to bear, or to continue to bear, the whole or any part of so much of the burden.

(3) If—

(a) OFCOM determine that it would be unfair for the social tariff provider to bear, or to continue to bear, the whole or a part of the burden, and

(b) an application for a determination under this subsection is made to OFCOM by that provider,

OFCOM may determine that contributions are to be made by communications providers to whom general conditions are applicable for meeting that burden.

(4) Subsections (4) to (9) of section 71 apply for the purposes of this section as if—

(a) references to the designated universal service provider were references to the social tariff provider;

(b) references to universal service conditions were references to social tariff conditions;

(c) the reference to an application for the purposes of subsection (3)(b) of that section were a reference to an application for the purposes of subsection (3)(b) of this section;

(d) references to contributions under subsection (3) of that section were references to contributions under subsection (3) of this section;

(e) references to regulations made under that section were references to regulations made under subsections (4) to (7) of that section as applied by this subsection.

72I Report on sharing mechanism: social tariff obligations U.K.

(1) This section applies where regulations made under section 71(4) to (7) as applied by section 72H(4) provide for a scheme for the assessment, collection and distribution of contributions under subsection (3) of that section.

(2) OFCOM must prepare and publish a report setting out, in relation to the period to which it applies—

(a) every determination by OFCOM that has had effect in relation to a time in that period as a determination of the costs of providing anything contained in a social tariff condition;

(b) the market benefits for each communications provider to whom a social tariff condition applies that have accrued to that provider during that period from the application to the provider of the social tariff condition; and

(c) the contribution made under section 72H(3) by every person who has made a contribution during that period.

(3) The first report under this section must be prepared in relation to the period of twelve months beginning with the coming into force of the first regulations to be made under section 71(4) to (7) as applied by section 72H(4).

(4) Every subsequent report must be prepared in relation to the period of 12 months beginning with the end of the period to which the previous report applied.

(5) Every report under this section—

(a) must be prepared as soon as practicable after the end of the period to which it is to apply; and

(b) must be published as soon as practicable after its preparation is complete.

(6) OFCOM are not required under this section—

(a) to publish any matter that is confidential in accordance with section 72(7) or (8); or

(b) to publish anything that it would not be reasonably practicable to publish without disclosing such a matter.

(7) The publication of a report under this section must be a publication in such manner as OFCOM consider appropriate for bringing it to the attention of the persons who, in their opinion, are affected by the matters to which it relates.]