(1)It shall be a function of OFCOM, to the extent that provision for them to do so is contained in—
(a)the BBC Charter and Agreement, and
(b)the provisions of this Act and of Part 5 of the 1996 Act,
to regulate the provision of the BBC’s services and the carrying on by the BBC of other activities for purposes connected with the provision of those services.
(2)For the purposes of the carrying out of that function OFCOM—
(a)are to have such powers and duties as may be conferred on them by or under the BBC Charter and Agreement; and
(b)are entitled, to the extent that they are authorised to do so by the Secretary of State or under the terms of that Charter and Agreement, to act on his behalf in relation to that Charter and Agreement.
(3)The BBC must pay OFCOM such penalties in respect of contraventions by the BBC of provision made by or under—
(a)this Part, or
(b)the BBC Charter and Agreement,
as are imposed by OFCOM in exercise of powers conferred on them by that Charter and Agreement.
(4)The BBC are also to be liable to pay OFCOM such sums in respect of the carrying out by OFCOM of their functions in relation to the BBC as may be—
(a)agreed from time to time between the BBC and OFCOM; or
(b)(in default of agreement) fixed by the Secretary of State.
(5)The maximum penalty that may be imposed on the BBC on any occasion by OFCOM in exercise of a power conferred by virtue of the BBC Charter and Agreement is £250,000.
(6)The Secretary of State may by order substitute a different sum for the sum for the time being specified in subsection (5).
(7)No order is to be made containing provision authorised by subsection (6) unless a draft of the order has been laid before Parliament and approved by a resolution of each House.
(8)It shall be the duty of OFCOM to have regard to their functions under this section when carrying out their functions under the 1990 Act, the 1996 Act and this Part in relation to services provided by persons other than the BBC.
(9)In this section “the BBC’s services” means such of the services provided by the BBC (excluding the services comprised in the World Service) as are of a description of service which, if provided by a BBC company, would fall to be regulated by OFCOM by virtue of section 211 or 245.