The Electronic Communications (Networks and Services) (Penalties) (Rules for Calculation of Turnover) Order 2003

Made: 22nd October 2003

Coming into force: 27th October 2003

Now therefore the Secretary of State in exercise of the powers conferred on her by sections 97(3)(a) and 402(3)(a) of the Communications Act 2003 hereby makes the following Order:

Citation and commencement

1

This Order may be cited as the Electronic Communications (Networks and Services) (Penalties) (Rules for Calculation of Turnover) Order 2003 and shall come into force on 27th October 2003.

Interpretation

2

In this Order:

• “the Act” means the Communications Act 2003; ...

• ...

Rules for Calculation of turnover for the purposes of section 97

3

The rules for the calculation of turnover of a person’s relevant business for a relevant period for the purposes of section 97 of the Act shall be the rules set out in the Schedule to this Order.

SCHEDULE — RULES FOR CALCULATION OF TURNOVER FOR PURPOSES OF SECTION 97

General rules

1

A person’s turnover shall be calculated in conformity with accounting practices and principles which are generally accepted in the United Kingdom.

2

A person’s turnover shall be limited to the amounts derived by that person from the relevant business after deduction of sales rebates, value added tax and other taxes directly related to turnover.

3

When a person’s relevant business consists of two or more undertakings that each prepare accounts then the turnover shall be calculated by adding together the turnover of each, save that no account shall be taken of any turnover resulting from the supply of goods or the provision of services between them.

Rules about aids granted to a notified provider

4

• (1) Any aid ... granted by a public body to a person which relates to one of that person’s ordinary activities shall be included in the calculation of turnover if the person is himself the recipient of the aid and if the aid is directly linked to the carrying out by that person of the relevant business.

• (2) In this paragraph “aid” means a measure which—

• (a) fulfils the conditions set out in Article 1.1 of the Agreement on Subsidies and Countervailing Measures contained in Annex 1A to the WTO Agreement, and

• (b) is specific within the meaning of Article 2 of that Agreement, irrespective of whether the recipient deals in goods or services.

Signed

Stephen Timms, — Minister of State for Energy, E-Commerce and Postal Services — Department of Trade and Industry — 2003-10-22

Explanatory note

(This note is not part of the Order)

This Order sets out rules governing the way in which the turnover of a notified provider of electronic communications networks, services, facilities, or apparatus should be calculated for the purposes of section 97 of the Communications Act 2003.

A notified provider is a person in respect of whom OFCOM have given a notification under section 94 that there are reasonable grounds for believing that that person is contravening, or has contravened, a condition set under section 45. Conditions set under section 45 are general conditions, universal service conditions, access-related conditions, privileged supplier conditions and significant market power conditions.

Where OFCOM determine that a notified provider is in contravention of a condition specified in the notification, they may impose, on that provider, a penalty of up to 10 per cent of the turnover of the provider’s relevant business.

Footnotes

[^f00001]: 2003 c. 21.

Editorial notes

[^key-bb7067de7c2f13603445c3d688f9a5de]: Art. 1 in force at 27.10.2003, see art. 1

[^key-5a0901eadfc6ceea6454b9772687cb15]: Art. 2 in force at 27.10.2003, see art. 1

[^key-d43fe15b598b1a4664fca65d3162046a]: Art. 3 in force at 27.10.2003, see art. 1

[^key-bab944dbc1d702d575467c98115b1f62]: Sch. para. 1 in force at 27.10.2003, see art. 1

[^key-122f9ef1e0dfc1a813d884520828cfad]: Sch. para. 2 in force at 27.10.2003, see art. 1

[^key-a825a5539f85e01f11c95c462021b365]: Sch. para. 3 in force at 27.10.2003, see art. 1

[^key-9fc65e7e8b9fd742be64d50494e12977]: Sch. para. 4 in force at 27.10.2003, see art. 1

[^key-bab483f56d19982f41616252668aa6da]: Sch. para. 4 renumbered as Sch. para. 4(1) (31.12.2020) by The State Aid (Revocations and Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1470), reg. 1(2), Sch. 2 para. 5(2)(a) (with Sch. 3)

[^key-fbd2630e1486919d9ea379178a5911e5]: Words in Sch. para. 4(1) omitted (31.12.2020) by virtue of The State Aid (Revocations and Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1470), reg. 1(2), Sch. 2 para. 5(2)(b) (with Sch. 3)

[^key-f16c851d3985692b84643eeffc38e0bb]: Sch. para. 4(2) inserted (31.12.2020) by The State Aid (Revocations and Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1470), reg. 1(2), Sch. 2 para. 5(2)(c) (with Sch. 3)

[^key-b724896f73a89b763ab7e67d1d7e4935]: Word in art. 2 omitted (3.4.2025) by virtue of The Electronic Communications (Networks and Services) (Designated Vendor Directions) (Penalties) Order 2025 (S.I. 2025/443), arts. 1(2), 3(2)(a)

[^key-a3644a0ed01d54beade6e944eac671b6]: Words in art. 2 omitted (3.4.2025) by virtue of The Electronic Communications (Networks and Services) (Designated Vendor Directions) (Penalties) Order 2025 (S.I. 2025/443), arts. 1(2), 3(2)(b)

[^key-d19f1697c6b94efc0aff049a24840cdd]: Word in art. 3 substituted (3.4.2025) by The Electronic Communications (Networks and Services) (Designated Vendor Directions) (Penalties) Order 2025 (S.I. 2025/443), arts. 1(2), 3(3)

[^key-ea0e5e6c521643435731447b7751d632]: Words in Sch. para. 4(1) substituted (3.4.2025) by The Electronic Communications (Networks and Services) (Designated Vendor Directions) (Penalties) Order 2025 (S.I. 2025/443), arts. 1(2), 3(4)(e)(ii)

[^key-882935e526a831dcecfa80f7e1ec5934]: Words in Sch. para. 4(1) substituted (3.4.2025) by The Electronic Communications (Networks and Services) (Designated Vendor Directions) (Penalties) Order 2025 (S.I. 2025/443), arts. 1(2), 3(4)(e)(iii)

[^key-1ffda92fa3ea502f33a36e9edff23c3b]: Word in Sch. para. 4 heading omitted (3.4.2025) by virtue of The Electronic Communications (Networks and Services) (Designated Vendor Directions) (Penalties) Order 2025 (S.I. 2025/443), arts. 1(2), 3(4)(d)

[^key-bb908d87e17ffc2a38f08d25deda9d4c]: Words in Sch. para. 1 substituted (3.4.2025) by The Electronic Communications (Networks and Services) (Designated Vendor Directions) (Penalties) Order 2025 (S.I. 2025/443), arts. 1(2), 3(4)(a)

[^key-a4f25ed39e71021135d2cc07be46f811]: Words in Sch. para. 2 substituted (3.4.2025) by The Electronic Communications (Networks and Services) (Designated Vendor Directions) (Penalties) Order 2025 (S.I. 2025/443), arts. 1(2), 3(4)(b)(i)

[^key-15ff62b9a9a4b3d3a16ae39ed9935cf6]: Words in Sch. para. 2 substituted (3.4.2025) by The Electronic Communications (Networks and Services) (Designated Vendor Directions) (Penalties) Order 2025 (S.I. 2025/443), arts. 1(2), 3(4)(b)(ii)

[^key-7fc7d90aa3d067ccb19a09f12608d2f2]: Word in Sch. para. 3 substituted (3.4.2025) by The Electronic Communications (Networks and Services) (Designated Vendor Directions) (Penalties) Order 2025 (S.I. 2025/443), arts. 1(2), 3(4)(c)

[^key-3a84d6386e22860a232c080ce3405fab]: Word in Sch. para. 4(1) substituted (3.4.2025) by The Electronic Communications (Networks and Services) (Designated Vendor Directions) (Penalties) Order 2025 (S.I. 2025/443), arts. 1(2), 3(4)(e)(i)

Rules about aids granted ...