Part 3

Regulation of postal services

Universal service providers

USP accounting conditions
39
1
OFCOM may impose a USP accounting condition on a universal service provider.
2
A USP accounting condition is a condition requiring the provider to do one or more of the following—
a
to maintain a separation for accounting purposes between such different matters as OFCOM may direct for such purposes as they may direct,
b
to comply with rules made by OFCOM in relation to those matters about the identification of costs and cost orientation,
c
to comply with rules made by OFCOM about the use of cost accounting systems in relation to those matters, and
d
to secure that its compliance with those systems is audited annually by a qualified independent auditor.
3
An obligation within subsection (2)(a)—
a
may require the separation to be maintained in relation to different services, facilities or products or in relation to services, facilities or products provided in different areas, and
b
may impose requirements about the accounting methods to be used in maintaining the separation.
4
An obligation within subsection (2)(b) or (c)—
a
may include conditions requiring the application of presumptions in the fixing and determination of costs and charges for any purpose, and
b
may require the universal service provider concerned to publish such accounts and other information relating to anything required to be done as a result of those provisions as OFCOM consider appropriate.
5
An obligation within subsection (2)(d) may require the universal service provider concerned to meet the costs of the audit.
6
If a USP accounting condition imposes rules on a universal service provider about the use of cost accounting systems, OFCOM may secure that the condition also imposes an obligation on the provider to make arrangements for a description to be made available to the public of the cost accounting system used.
7
If OFCOM impose an obligation under subsection (6), the description of information to be made available must include details of—
a
the main categories under which costs are brought into account for the purposes of that system, and
b
the rules applied for the purposes of that system with respect to the allocation of costs.
8
In this section “qualified independent auditor” means a person who—
a
is eligible for appointment as a statutory auditor under Part 42 of the Companies Act 2006, and
b
if the appointment were an appointment as a statutory auditor, would not be prohibited from acting by section 1214 of that Act (independence requirement).