Review of BT’s cost attribution methodologies. Second consultation

  • Start: 13 November 2015
  • Status: Closed
  • End: 14 December 2015

About this document

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.

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 changes to the attribution rules would be reflected in any consequent price control.

In June 2015, we set out the initial findings from that review and invited stakeholders’ views on if and how BT’s existing attribution rules need to change. We also explained that more work was required to establish if some of BT’s remaining cost attribution rules were appropriate.

This document sets out the results of that further review. It identifies some rules that we consider are not appropriate, makes proposals for further changes to BT’s attribution methodologies and provides an estimate of the possible impact of those changes on the costs attributed to BT’s regulated markets.

Note: On November 26 2015, Ofcom published corrections to table 4.34 on p89 of this consultation. The table has now been updated accordingly.

Main documents

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Responder name Type
BT_response_to_2nd_CAR_Consultation_of_13_November_2015.pdf (PDF File, 714.0 KB) Organisation
Deloitte_report_for_BT_-_2nd_CAR_Consultation_of_13_November_2015.pdf (PDF File, 280.2 KB) Organisation
FTI_Report_for_BT_-_2nd_CAR_Consultation_of_13_November_2015.pdf (PDF File, 487.0 KB) Organisation
PAG.pdf (PDF File, 450.5 KB) Organisation
Sky_response_to_2nd_CAR_Consultation_of_13_November_2015.pdf (PDF File, 117.8 KB) Organisation
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