The Regulation of Premium Rate Services Order 2024

14 Requirement to pay OFCOM’s administrative charges

(1) A liable network operator must pay to OFCOM the amount in pounds sterling for the administrative charge that is calculated in accordance with paragraphs (2) and (3) for each charging year. (2) The formula to calculate the amount mentioned in paragraph (1) is— AC = [ ( DAE + O ) ÷ TOP ] × NOS Where— “AC” means the amount of the administrative charge payable by the liable network operator in question, “DAE” means the total sum of the relevant expenditure estimated by OFCOM to be incurred in the charging year in question, together with any adjustments to deal with a deficit or surplus mentioned in paragraph (6), “O” means a reasonable apportionment of OFCOM’s estimated overhead costs attributable to such expenditure for the charging year in question, “TOP” means the total amount of outpayments of all liable network operators in the relevant calendar year, and “NOS” means the total amount of outpayments of the liable network operator in question in the relevant calendar year. (3) If the amount calculated in accordance with paragraph (2) is a fraction of a whole number, it must be rounded down to the nearest whole number. (4) The amount mentioned in paragraph (1) must be paid to OFCOM— (a) where it is equal to or less than £75,000, in full within 30 days after receipt of the invoice sent by OFCOM, or (b) where it is more than £75,000, in 12 equal monthly instalments, with the first instalment to be paid by the date falling one calendar month after the date the invoice is sent by OFCOM and subsequent instalments payable at calendar monthly intervals after that. (5) As soon as reasonably practicable after the end of each charging year, OFCOM must publish a statement setting out, in respect of that year— (a) the aggregate amounts of the administrative charges that have been received by OFCOM for that year, (b) the aggregate amount of the administrative charges for that year that remain outstanding and are likely to be paid or recovered, and (c) the relevant expenditure for that year. (6) Any deficit or surplus shown (after applying this paragraph for all previous years) by a statement under paragraph (5) must be carried forward and taken into account by OFCOM to ensure that the aggregate amount of the charges payable to OFCOM is sufficient to meet, but does not exceed, the relevant expenditure estimated to be incurred in relation to the following year. (7) In this article— “charging year” means— the period beginning with 1st February 2025 and ending with 31st March 2025, or any subsequent period of 12 months beginning with 1st April; “liable network operator” means a network operator whose total amount of outpayments in a relevant calendar year is equal to or more than £10,000 exclusive of VAT; “originating communications provider” means a person providing electronic communications services to consumers; “outpayments” mean the total sum of the amounts payable by a liable network operator to intermediaries and merchants in respect of PRS revenue; “PRS revenue” means the total net amount passed onto a liable network operator by an originating communications provider in respect of charges imposed by the provider on users of its electronic communications services for the provision of controlled PRS, together with any facilities made available to them, except for any charges imposed for the purpose of those users donating to a charity; “relevant calendar year” means the period of 12 months beginning with the first day of January in the year two years before the calendar year in which the charging year in question begins; “relevant expenditure” means expenditure in connection with— OFCOM’s establishment and maintenance, in accordance with this Order, of any procedure, and the making of other arrangements by OFCOM for the purposes of the requirements of this Order.