Radio Authority announces revised licence fees

162/99 10 November 1999

RADIO AUTHORITY ANNOUNCES REVISED LICENCE FEES

The Radio Authority is today (10 November) announcing revisions to its tariff table, which is revised annually. These anticipate the level of income which the Authority needs to receive in order to recover its costs and are based on assumptions it has made about future licensing activity. For the first time in the Authority’s history, licence fees will be increased. The new tariff, which represents an average increase in fees of 8%, comes into effect from 1 January 2000.

Background

The Authority is required to generate enough income each year to cover its costs; it does not make a profit. The only source of income the Authority receives is derived from its licence and application fees. Over recent years, the balance within the tariff table has been changed to ensure that application fees meet the substantial cost of the Authority's comprehensive licensing activities.

The 1996 Broadcasting Act gave the Authority extensive additional tasks, in particular the licensing of digital radio and the management of public interest tests, and it is no longer possible to contain the cost of those without additional revenue. Taken together with the task of regulating a growing number of stations, it is now necessary to make the first increase ever in licence fees paid by existing operators to the Authority.

Details

The effect on individual stations varies according to the size of the area covered. The tariff table is progressive, with increases in fees ranging from 4% for smaller stations to between 8% and 12% for larger ones.

The national FM licensee and those FM local radio stations with a population coverage of over one million will see their fees increase by between 8-12%. Fees for FM services with a population coverage of under one million will increase by 4%. Fees for all AM services, national and local, will increase by 4%.

The Authority has also taken the opportunity to simplify the fee structure and reduce the costs for short-term Restricted Service Licences operated on non-consecutive days across periods greater than 28 days. Previously these licensees were charged on a daily rate basis. The current revision now makes charges for these licences on a fixed fee basis.

ENDS

NOTES TO EDITORS

1. Single copies of the tariff table are available free of charge from the Press Office.

2. The Radio Authority is responsible for licensing and regulating Independent Radio in accordance with the statutory requirements of the Broadcasting Acts 1990 and 1996. It plans frequencies, awards licences, regulates programming and advertising, and plays an active role in the discussion and formulation of policies which affect the Independent Radio industry and its listeners.

Contact:
Press enquiries:
Julie McCatty, Chief Press Officer: 020 7887 4292
Kerry Curtis, Press & Information Officer: 020 7887 4290
Out of hours 07770 375283

General enquiries:
Press and Information Office: 020 7887 4294 or 020 7405 7058