Question to the Department for Digital, Culture, Media & Sport:

To ask Her Majesty’s Government what is the source of funding for Ofcom; whether it levies fees and charges; and if so, (1) under what authority, (2) against whom, and (3) what mechanisms there are for challenging the level of those fees and charges.

Ofcom is currently funded through fees from industry for regulating broadcasting and communications networks and from grant in aid from government. The Digital Economy Bill contains a provision to change Ofcom’s funding so that it will be entirely self-funded, only receiving grant-in-aid for delivery of specific government programmes

Under the Communications Act 2003 (sections 38 - 39 and 347) the Broadcasting Act 1990 (sections 4 and 87), the Broadcasting Act 1996 (sections 4 and 43) and the Postal Services Act 2011 (section 43), Ofcom is required to raise income from each of the sectors it regulates, such that it covers the costs to be incurred by Ofcom in regulating that sector.

Ofcom currently raises its funds from:

1. TV and Radio broadcasters;
2. Providers of on-demand programme services;
3. Electronic communication network and services providers;
4. The Postal Universal Service Provider and
5. DCMS grant in aid

Ofcom imposes its fees in accordance with its published Statement of Charging Principles. Whilst there is no statutory mechanism for challenging Ofcom’s fees, before making or revising its Statement of Charging Principles Ofcom must first consult those people who, in its opinion, are likely to be affected by the principles contained in that document. Ofcom also responds to stakeholders queries on the fees and charges set.