Review of BT’s cost attribution methodologies

  • Start: 12 June 2015
  • Status: Closed
  • End: 07 August 2015

About this document

This document sets out our proposals for changes to the way that BT attributes its costs to services. 

BT is subject to regulatory financial reporting obligations.  These have been imposed by Ofcom where BT has been found to have Significant Market Power in a relevant market. These include obligations relating to accounting separation and cost accounting and include requirements to produce and publish annual Regulatory Financial Statements and to maintain and publish certain accounting documents setting out how BT prepares those statements. 

In May 2014, we decided that BT’s Regulatory Financial Statements should comply with a new set of guiding principles, which we called the Regulatory Accounting Principles. We explained that we would establish Regulatory Accounting Guidelines which will contain high level guidelines and accounting rules.

We explained that we would review BT’s existing attribution rules against the new Regulatory Accounting Principles and that we would consult on the findings from this review alongside the Business Connectivity Market Review consultation, with the intention that any proposed changes to the attribution rules would be reflected in any consequent price control.  

This document sets out the initial findings from that review and invites stakeholders’ views on if and how BT’s existing attribution rules need to change. 

Main documents

Supporting documents

Supporting documents

Supporting documents

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Responder name Type
BT_response_to_CAR_consultation_of_12_June_2015.pdf (PDF File, 816.1 KB) Organisation
EY_report_for_BT_CAR_and_LLCC_consultations.pdf (PDF File, 142.2 KB) Organisation
FTI_Report_for_BT_CAR_consultation_of_12_June_2015.pdf (PDF File, 800.2 KB) Organisation
Sky_Response_to_CAR_consultation_of_12_June_2015.pdf (PDF File, 80.3 KB) Organisation
TalkTalk_response_to_CAR_consultation_of_12_June_2015.pdf (PDF File, 570.1 KB) Organisation
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