(b) promoting effective competition, and
(c) conferring significant benefits on the users of postal services.
(5) In addition, OFCOM may not impose any price controls on a universal service
provider in a USP access condition unless it appears to them that the provider
concerned—
(a) might otherwise fix and maintain some or all of its prices at an
excessively high level with adverse consequences for users of postal
services, or
(b) might otherwise impose a price squeeze with adverse consequences for
users of postal services.
(6) In imposing price controls in a USP access condition in connection with the
giving of access to a universal service provider’s postal network or to part of
that network, OFCOM must have regard to such of the costs incurred in the
provision of that network, or part of that network, as OFCOM consider
appropriate.
(7) In imposing price controls in a USP access condition OFCOM may—
(a) have regard to the prices at which services are available in comparable
competitive markets, and
(b) determine what they consider to represent efficiency by using cost
accounting methods.
(8) In deciding what obligations to impose in a USP access condition in a particular
case, OFCOM must (in addition to taking into account anything relevant for
the purpose of performing their duty under section 29) take into account, in
particular, the following factors—
(a) the technical and economic viability, having regard to the state of
market development, of installing and using facilities that would make
the proposed access unnecessary,
(b) the feasibility of giving the proposed access,
(c) the investment made by the universal service provider concerned in
relation to the matters in respect of which access is proposed,
(d) the need to secure effective competition in the long term, and
(e) any rights to intellectual property that are relevant to the proposal.
(9) For the purposes of this section references to giving a person access to a
provider’s postal network include giving a person an entitlement to use, be
provided with or become a party to any services, facilities or arrangements
comprised in the postal network.
(10) In Schedule 3—
(a) Part 1 makes provision about the kind of matters that may be included
in a USP access condition, and
(b) Part 2 makes provision about the resolution of access disputes by
OFCOM.
39 USP accounting conditions
(1) OFCOM may impose a USP accounting condition on a universal service
provider.
(2) A USP accounting condition is a condition requiring the provider to do one or
more of the following—Postal Services Act 2011 (c. 5)
Part 3 — Regulation of postal services
25
(a) to maintain a separation for accounting purposes between such
different matters as OFCOM may direct for such purposes as they may
direct,
(b) to comply with rules made by OFCOM in relation to those matters
about the identification of costs and cost orientation,
(c) to comply with rules made by OFCOM about the use of cost accounting
systems in relation to those matters, and
(d) to secure that its compliance with those systems is audited annually by
a qualified independent auditor.
(3) An obligation within subsection (2)(a)—
(a) may require the separation to be maintained in relation to different
services, facilities or products or in relation to services, facilities or
products provided in different areas, and
(b) may impose requirements about the accounting methods to be used in
maintaining the separation.
(4) An obligation within subsection (2)(b) or (c)—
(a) may include conditions requiring the application of presumptions in
the fixing and determination of costs and charges for any purpose, and
(b) may require the universal service provider concerned to publish such
accounts and other information relating to anything required to be
done as a result of those provisions as OFCOM consider appropriate.
(5) An obligation within subsection (2)(d) may require the universal service
provider concerned to meet the costs of the audit.
(6) If a USP accounting condition imposes rules on a universal service provider
about the use of cost accounting systems, OFCOM may secure that the
condition also imposes an obligation on the provider to make arrangements for
a description to be made available to the public of the cost accounting system
used.
(7) If OFCOM impose an obligation under subsection (6), the description of
information to be made available must include details of—
(a) the main categories under which costs are brought into account for the
purposes of that system, and
(b) the rules applied for the purposes of that system with respect to the
allocation of costs.
(8) In this section “qualified independent auditor” means a person who—
(a) is eligible for appointment as a statutory auditor under Part 42 of the
Companies Act 2006, and
(b) if the appointment were an appointment as a statutory auditor, would
not be prohibited from acting by section 1214 of that Act (independence
requirement).
Persons providing services within scope of universal postal service
40 Services within scope of the universal postal service
(1) A postal service is within the scope of the universal postal service if—
(a) the service falls within the description of a service set out in the
universal postal service order, or