Part 3

Television and Radio Services
Chapter 2

Regulatory Structure for Independent Television Services

Television licensable content services

Penalties for contravention of licence condition or direction
237
1
If OFCOM are satisfied that the holder of a licence to provide a television licensable content service—
a
has contravened a condition of the licence, or
b
has failed to comply with a direction given by OFCOM under or by virtue of a provision of this Part, Part 1 of the 1990 Act or Part 5 of the 1996 Act,
they may serve on him a notice requiring him to pay them, within a specified period, a specified penalty.
2
The amount of the penalty under this section must not exceed the maximum penalty given by subsection (3).
3
The maximum penalty is whichever is the greater of—
a
£250,000; and
b
5 per cent. of the qualifying revenue for the licence holder’s last complete accounting period falling within the period for which his licence has been in force (“the relevant period”).
4
In relation to a person whose first complete accounting period falling within the relevant period has not ended when the penalty is imposed, subsection (3) is to be construed as referring to 5 per cent of the amount which OFCOM estimate will be the qualifying revenue for that accounting period.
5
Section 19(2) to (6) of the 1990 Act and Part 1 of Schedule 7 to that Act (calculation of qualifying revenue), with any necessary modifications, are to apply for the purposes of subsection (3) as they apply for the purposes of Part 1 of that Act.
6
OFCOM are not to serve a notice on a person under subsection (1) unless they have given him a reasonable opportunity of making representations to them about the matters appearing to them to provide grounds for the service of the notice.
7
Where OFCOM—
a
serve a notice on a BBC company under subsection (1), or
b
receive representations from a BBC company by virtue of subsection (6),
they must send a copy of the notice or representations to the Secretary of State.
8
An exercise by OFCOM of their powers under subsection (1) does not preclude any exercise by them of their powers under section 236 in respect of the same contravention.
9
The Secretary of State may by order substitute a different sum for the sum for the time being specified in subsection (3)(a).
10
No order is to be made containing provision authorised by subsection (9) unless a draft of the order has been laid before Parliament and approved by a resolution of each House.