PhonepayPlus confirms Annual Business Plan, Budget and Administrative charges for 2009/10

1 April 2009

Annual Business Plan, Budget and Administrative Charges

PhonepayPlus has today confirmed its Annual Business Plan and Budget for 2009/10 following its consultation which was published on 18 December 2008.

The consultation found continued support among respondents for a well resourced and active regulator of phone-paid services, but with an emphasis on cost savings and intelligence-led monitoring of high-risk services. There was also agreement that the cost of regulation to reputable businesses should be mitigated by proportionate application of the ‘polluter pays’ principle, which sees companies found in breach of the Code of Practice (Code) required to cover the costs incurred by PhonepayPlus in the investigation and administration of their case.

Finally, there was widespread agreement that there is an opportunity for industry, especially through the Industry Liaison Panel (ILP), to help reduce costs by supporting PhonepayPlus in a number of ways, including improving its own customer service processes and sharing industry research and intelligence.

In response to industry and stakeholder feedback following its proposed budget, PhonepayPlus has revised its original proposed increase to nil. This means that the levy, which was approved by Ofcom on 10 March 2009, will remain at 0.48%, representing a budget for FY 2009/10 of £4,352,731.

Administrative Charges
In response to the widespread support from industry of the ‘polluter pays’ principle, and following a review of the first twelve months’ operation of the newly introduced Code Compliance Panel (CCP), PhonepayPlus has also reviewed the administrative charges invoiced to companies found to be in breach of its Code.

Under the new system, networks and providers found in breach of the Code will pay administrative charges proportionate to the time PhonepayPlus personnel spend bringing their cases to conclusion. This means networks and providers that comply with the Code will not subsidise, through their levy payments, the regulatory costs related to the behaviour of those in breach, and reputable businesses will ultimately benefit from lower levy payments.

The full Business Plan and Budget Statement can be found here

The full Administrative Charges notice, including a breakdown of hourly rate charges for investigators and fixed charges for Tribunals, can be found here