The Financial Transparency (EC Directive) Regulations 2009

Maintenance of separate accounts

6.—(1) An undertaking which is—

(a) granted a special right or an exclusive right, or

(b) entrusted with any service of general economic interest and receives public service compensation, in any form whatsoever, in relation to that service,

and carries on an activity not covered by (a) or (b), shall maintain separate accounts in respect of its activities under paragraphs (a) and (b) and any other of its activities which fall outside of those paragraphs.

(2) The separate accounts referred to in paragraph (1) shall—

(a) show the costs and revenues associated with each of its activities;

(b) show the full details of the methods by which costs and revenues are assigned or allocated to each of its activities;

(c) show that the internal accounts corresponding to each of its activities are separate; and

(d) be based on clearly established, consistently applied and objectively justifiable cost accounting principles.

(3) This regulation shall not apply—

(a) to activities in respect of which other provisions in relation to financial transparency within undertakings have been laid down by [F1 retained EU law];

[F2 (b) in relation to —

(i) services which were supplied by an undertaking prior to IP completion day and which were not liable to affect trade between Member States (within the meaning of the Treaty as it applied to the United Kingdom prior to IP completion day) to an appreciable extent; or

(ii) activities carried out by an undertaking on or after IP completion day and which are not liable to affect that trade between Northern Ireland and the European Union which is subject to the Northern Ireland Protocol (within the meaning of Article 10 of the Northern Ireland Protocol) to an appreciable extent.]

(c) to an undertaking, other than a public credit institution, whose total annual net turnover in each of the two financial years preceding the financial year in which it enjoys a special right or an exclusive right, or in which it is entrusted with a service of general economic interest, is less than 40 million euros;

(d) to a public credit institution whose balance sheet total in each of the two financial years preceding the financial year in which it enjoys a special right or an exclusive right, or in which it is entrusted with a service of general economic interest, is less than 800 million euros; or

(e) to an undertaking which is entrusted with the operation of a service of general economic interest pursuant to [F3 Article 106(2)] of the Treaty if the compensation it receives, in any form, was fixed for an appropriate period following an open, transparent and non-discriminatory procedure.

Textual Amendments

F1 Words in reg. 6(3)(a) substituted (31.12.2020) by The State Aid (Revocations and Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1470), reg. 1(2), Sch. 1 para. 11(6)(a) (with Sch. 3)

F2 Reg. 6(3)(b) substituted (31.12.2020) by The State Aid (Revocations and Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1470), reg. 1(2), Sch. 1 para. 11(6)(b) (with Sch. 3)

F3 Words in reg. 6(3)(e) substituted (31.12.2020) by The State Aid (Revocations and Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1470), reg. 1(2), Sch. 1 para. 11(6)(c) (with Sch. 3)