Annex: Transposition Notes for the Postal Services Directive (2008/6/Ec) Article 7 and Parts B and C of Annex I: Financing of universal service Implementation
527.Article 7(3)(b) to (5) are implemented through sections 42(3) and 44 to 47 of the Act. These provisions confer powers on OFCOM to set up (by regulations) a cost-sharing mechanism to finance the postal universal services by means of contributions from service providers and/or user’s fees. Before a cost-sharing mechanism is set, OFCOM is required to carry out a review of costs of a universal service provider and conclude that the (i) service provider is subject to an unfair financial burden when complying with universal service conditions; and (ii) it would be unfair for that provider to bear the whole or part of that burden.
528.Article 7(2) and (3) (a) do not require implementation.
529.The net cost calculation mechanisms in Part B and the recovery of costs provisions in Part C of Annex I to the Directive only become relevant when OFCOM reviews the financial burden of the universal service and decides whether to set-up a cost sharing mechanism, through regulations made pursuant to these new enabling powers. Accordingly, these provisions only need to be given effect in the regulations made by OFCOM under the new powers.