PART 2Subsidy control requirements
CHAPTER 2Prohibitions and other requirements
Other specific prohibitions and requirements
I1I229Services of public economic interest
1
The requirements in subsections (2) and (3) apply in relation to the giving of a subsidy to a SPEI enterprise for the purpose of the provision of SPEI services.
2
The public authority giving the subsidy must be satisfied that the amount of the subsidy is limited to what is necessary to deliver the SPEI services, having regard to—
a
costs in delivering the SPEI services, and
b
reasonable profits to be made in doing so.
3
The subsidy must be given in a transparent manner.
4
For the purposes of subsection (3), a subsidy is given in a “transparent manner” only if—
a
the subsidy is given in accordance with a written contract or other legally enforceable arrangement in writing,
b
the terms on which the subsidy is given are set out in the contract or arrangement, and
c
the contract or arrangement includes the information in subsection (5).
5
The information is—
a
the SPEI services in respect of which the subsidy is given;
b
the SPEI enterprise that is tasked with providing the SPEI services;
c
the period for which the SPEI services are to be provided (“the delivery period”);
d
the geographic area in which the SPEI services are to be provided;
e
how the amount of subsidy given in respect of the SPEI services is determined;
f
arrangements for the purposes of subsection (6) in respect of reviews and steps that may be taken for recovery.
6
Where a subsidy is given to a SPEI enterprise, the public authority giving the subsidy—
a
must, during the delivery period, keep under regular review the use of the subsidy to ensure that the condition in subsection (2) continues to be met, and
b
must take steps, in accordance with its rights under the contract or arrangement mentioned in subsection (4), to recover a subsidy to the extent that the condition in subsection (2) ceases to be met.
7
For the purposes of the duty in subsection (6)(a), checks must be carried out as to the use of a subsidy—
a
at least once every 3 years beginning with the day when the delivery period begins, and
b
at the end of the delivery period.
8
The duties under section 12(1) apply to the giving of a subsidy in accordance with this section to a SPEI enterprise for the provision of SPEI services only so far as the carrying out of that duty does not obstruct the carrying out of those services.
9
In this Act—
“SPEI enterprise” means an enterprise that is assigned with particular tasks in the public interest (including public service obligations);
“SPEI services” means services provided in the carrying out of those tasks.