Financial impact of the PSI Directive: Pricing and Charging Key Issues Chris Corbin ePSIplus Analyst Prague, 30 October 2006 funded by eContentPlus
Jan 02, 2016
Financial impact of the PSI Directive: Pricing and Charging
Key Issues
Chris CorbinePSIplus Analyst
Prague, 30 October 2006
funded by eContentPlus
Presentation Outline
Part 1: ePSIplus project perspective - process and deliverables
Part 2: Impact of PSI Directive perspective & Economic perspective
Part 3: Value chain
Part 4: National Framework perspective
Part 5: Private sector perspective
Part 6: Public sector perspective
Part 7: Discussion - 30 minutes
Theme 4: Impact on prices and charges
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Theme 4: description
• The effects of the Directive on the PSI value chain, on costs, access and organisation within the public sector, including remedies for budget loss as a result of new charging policies.
• Developments in pricing and charging policies: emerging impact and approaches toward free of charge access, marginal costs charging, ‘reasonable return on investment’ policies etc
• Impact of varying fiscal and public sector cost-recovery approaches across Europe
Theme 4: Impact on prices and charges - PART 1
www.ePSIplus.net
Meetings
– April 2007 - Helsinki
– November 2007 - London
– June 2008 - Rome
The meetings will group Member State experts by typology and fiscal administrative conditions.
The meetings will address all levels of the public sector.
Theme 4: Impact on prices and charges - PART 1
www.ePSIplus.net
ePSIpluswebsite
Country Reports
PSIBibliography
Theme 4: Impact on prices and charges - PART 1
Background paper on issues and good practice
Meeting 1
Publish materials and report on Meeting 1
Meeting 2
Publish materials and report on Meeting 2
Meeting 3
Publish materials and report on Meeting 3
Undertake web based survey and report
Final report on the Financial impact of the PSI Directive
Present to final conference
www.ePSIplus.net
PSI Directive
Article 13: Review (Before July 2008)
- The effects of the principles applied to charges
Theme 4: Impact on prices and charges - PART 2
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Theme 4: Impact on prices and charges - PART 2
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Data can be made available:
• No charge - Free (no financial transaction involved).
• A marginal cost charge.
• A charge - where the charge for data can be based upon:
– Collecting
– Producing (creation and collation)
– Reproducing
– Dissemination (user support)
– ROI
PSI Directive:
Expected outcome on prices and charges
A downward effect on charges and re-use conditions
Issue:
How to determine whether the change in prices and charges if detected are as a result of the PSI Directive?
Theme 4: Impact on prices and charges - PART 2
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What might impact prices and charges?
• Fiscal policy (Government financial policy)
• A policy change
• A change of Government (Political)
• Technological advances
• Competition (From other data providers)
• Modernising government
• Structure of public sector (constantly changing)
• EU PSI Directive
• Regulation (Competition, Monopoly…)
• Temporal
• Public sector culture, behaviour
Theme 4: Impact on prices and charges - PART 2
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A methodology to assess movements in prices and charges
• Monitor PSIH’s that had a charging regime in place prior to 1st July 2005
• Where PSIH’s have introduced a charging regime since 1st July 2005 to be compared with equivalents where the information is the same.
• Make comparisons with equivalents in other Member States.
(But will need to take into account GDP, different operating frameworks, and ensure like with like)
Theme 4: Impact on prices and charges - PART 2
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Theme 4: Impact on prices and charges - PART 2
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Europe: GDP Per inhabitant (1999 and 2005)
0
50
100
150
200
250
300
Luxembourg
NorwayIreland
Switzerland
IcelandDenmark
Austria
Netherlands
BelgiumSweden
UK
FinlandGermany
France
Euro Area
ItalyEU25SpainCyprusGreece
SloveniaCzech Rep.
Portugal
Malta
HungaryEstoniaSlovakiaLithuania
PolandCroatiaLatvia
RomaniaBulgariaTurkey
Macedonia
EU15
PPS (Purchasing Power Standards)
GDP (2005) GDP (1999)
PSIH’s within the monitoring frame
• Cadastral Agencies
• Environment Agencies
• Hydrographic Agencies (Signatories to international agreements)
• Mapping Agencies
• Meteorological Agencies (Signatories to international agreements)
• Statistical Agencies
• Transport Agencies
All of the above are within the major sectors identified in the EC Green Paper
Theme 4: Impact on prices and charges - PART 2
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Theme 4: Impact on prices and charges - PART 2
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Temporal aspect of value of data or information
0
10
20
30
40
50
60
70
80
90
100
0 918 27 36 45 54 63 72 81 90 99
108117126135144153162171180189198207216225234243252
Time
Value
Theme 4: Impact on prices and charges - PART 2
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Potential Data &
Information available for re-use
PSI re-users(Value Chain)
InformationConsumers
Public Sector
InputValue
OutputValue
Value added = O/P Value - I/P Value
Economic analysis: simplified model for re-use of PSI
Theme 4: Impact on prices and charges - PART 2
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Potential Data &
Information available for re-use
PSI re-users(Value Chain)
InformationConsumers
Public Sector
ComplianceConfiguration of Public SectorOperating frameworkGeographic distributionInternal data flows (IPR/Cross charging)InvestmentNumber of entitiesPricing modelsProductivityROCETerms & ConditionsTransparency
Configuration of value chainGeographic distributionInvestmentNumber of entitiesPricing modelsProductivityRe-use sectorsROCEWorth of organisation
Economic analysis: simplified model for re-use of PSI: Obtaining the data
Article 6
Principles governing charges
Where charges are made, the total income from supplying and allowing re-use of documents shall not exceed the cost of collection, production, reproduction and dissemination, together with a reasonable return on investment.
Charges should be cost-oriented over the appropriate accounting period and calculated in line with the accounting principles applicable to the sector bodies involved.
Theme 4: Impact on prices and charges - PART 2
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Article 6
Principles governing charges
Issues to be considered:
• How would a potential PSI re-user know that these conditions have been met?
• What is, and how would one detect the acounting period that has been adopted in the pricing regime?
• How would one access the efficiency of the organisation?
• If there is no competition how will one determine whether the price is value for money?
Theme 4: Impact on prices and charges - PART 2
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Theme 4: Impact on prices and charges - PART 2
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UK annual turnover per employee for the financial year 2004/2005
£ 48,580
£ 23,185
£ 49,675
£ 92,040
£ 34,381£ 77,894
£ 46,581
£ 54,079
£ 48,485
£ 69,937
Companies House General Registers of Scotland HM Land RegistryMet Office Office of National Statistics Ordnance Survey GBOrdnance Survey Northern Ireland Patent Office Registers of ScotlandUK Hydrographic Office
Theme 4: Impact on prices and charges - PART 2
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Annual Turnover per employee for a sample of UK Public Sector Information Holders (PSIH's) 2004/2005
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
100000
GROSONS OSNI
ROS
Companies Hse
HMLR
Patent OffAverage
UKHO OSGB
Met Office
Organisation
Pounds
Theme 4: Impact on prices and charges - PART 2
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UK HM Land Registry - Percentage Return on average Capital Employed (ROCE) per financial year
0
5
10
15
20
25
30
1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05Financial Year
Percentage return
Theme 4: Impact on prices and charges - PART 2
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UK Patent Office Return on Capital Employed (ROCE)
0
5
10
15
20
25
30
35
1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05
Financial Year
%
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Recital 14
Where charges are made, the usual income should not exceed the total costs of collecting, producing, reproducing and disseminating documents, together with a reasonable return on investment, having due regard to the self-financing requirements of the public sector body concerned, where applicable.
Production includes creation and collation, and dissemination may also include user support.
Recovery of costs, together with a reasonable return on investment, consistent with applicable accounting principles and the relevant cost calculation method of the public sector body concerned, constitutes an upper limit to the charges, as any excessive prices should be precluded.
Theme 4: Impact on prices and charges - PART 2
Recital 14 continued
The upper limit for charges set in this Directive is without prejudice to the right of Member States or public sector bodies to apply lower charges or no charges at all, and Member States should encourage public sector bodies to make documents available at charges that do not exceed the marginal costs for reproducing and disseminating the documents.
Theme 4: Impact on prices and charges - PART 2
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Theme 4: Impact on prices and charges - PART 2
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UK Met Office - Income analysis per Customer Sector per financial year
£ -
£ 10,000,000
£ 20,000,000
£ 30,000,000
£ 40,000,000
£ 50,000,000
£ 60,000,000
£ 70,000,000
£ 80,000,000
£ 90,000,000
Defence Civil Aviation Civil Depts. ClimateResearch
Commercial Other
£'s
1999/00 2000/01 2001/02 2002/03 2003/04 2004/05
Theme 4: Impact on prices and charges - PART 2
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UK Met Office Annual Commercial Turnover
£ -
£ 5,000,000
£ 10,000,000
£ 15,000,000
£ 20,000,000
£ 25,000,000
1999/00 2000/01 2001/02 2002/03 2003/04 2004/05
Financial Year
Commercial Revenue Commercial Costs
Article 7
Transparency
Any applicable conditions and standard charges for the re-use of documents held by public sector bodies shall be pre-established and published, through electronic means where possible and appropriate.
On request, the public sector body shall indicate the calculation basis for the published charge.
The public sector body in question shall also indicate which factors will be taken into account in the calculation of charges
for atypical cases. (not conforming to the usual type or expected pattern)
Theme 4: Impact on prices and charges - PART 2
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Theme 4: Impact on prices and charges - PART 2
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Theme 4: Impact on prices and charges - PART 2
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UK Met Office
Theme 4: Impact on prices and charges - PART 2
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Irish Met Office
Theme 4: Impact on prices and charges - PART 2
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ECOMET
Article 10Non-discrimination
1. Any applicable conditions for the re-use of documents shall be non-discriminatory for comparable categories of re-use.
2. If documents are re-used by a public sector body as input for its commercial activities which fall outside the scope of its public tasks, the same charges and other conditions shall apply to the supply of the documents for those activities as apply to other users
Theme 4: Impact on prices and charges - PART 2
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Theme 4: Impact on prices and charges - PART 2
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A public sector data organisation
C
AStatutory function
BTrading function
Company a Company x
A charges B the same price as C for re-use. A charges C the same price as B for re-use.
Private sector data companies
Example: Public sector organisation that has a public good and commercial role
Theme 4: Impact on prices and charges - PART 2
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NationalMappingAgency
LocalGovernment
A
Public Sector
PSI
Re-user
Private Sector
B
Data Required: Changes in the built environment, Street names.
Transaction A: Some members states charge (Sweden) others do not (UK) Transaction B: Conditions should be the same for that Member State.
Due to precedence one would expect conditions will be the same for A and B
Question: Where would one find this information?
EU PSI Directive Article 7 (Transparency), Article 10.2 (Level playing field)UK SI Regulation 14.2, 16 & 17
Business Analysis: pricing & Service level precedence
Theme 4: Impact on prices and charges - PART 3
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PSI Sold
PSI Free
PSI notavailable
Customer
PSI re-users(Value Chain)
Analysis of PSI and data flows
Theme 4: Impact on prices and charges - PART 3
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PSI Sold
PSI Free
PSI notavailable
Customer(Includes
Public Sector)
PSI re-users(Value Chain)
PSI Distributors/ Partners No added value
(1:1 relationship not an aggregator )
Analysis of PSI and data flows
Theme 4: Impact on prices and charges - PART 3
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Economic analysis: simplified model for re-use of PSI
Related areas that impact: eGovernment as public sector moves down stream,procurement, PPP
PSI
Customer
Producer
ProfessionalServices
Content Providers
Data, Games, Navigation, databases, etc.
Commercial re-use sector
Risk, Catchment, Design (architecture, civil engineering), etc
Information services, travel planning, catalogues, tourism, etc.
InformationConsumers
Other Data Suppliers
Theme 4: Impact on prices and charges - PART 3
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Simplified Value Chain
Data Collector
Datapackager
Data Wholesaler
Data Distributor
Data Integrator
Customer
Data Collector
Datapackager
Data Integrator
PSI
LinguisticServices
Data LocatorServices
SemanticServices
DirectoryServices
PublicSector Trading
FinancialServices
Theme 4: Impact on prices and charges - PART 4
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Parliament
Setting the legal
framework Scrutiny
National Audit
Data Privacy & Protection
Competition
Information
RegulationPublic Sector
Public Sector Organisation Reuse of PSI Policy
National re-use PSI framework
Financial Framework and
Risk Analysis Framework
Civil Society (including the market)
Theme 4: Impact on prices and charges - PART 4
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25 Member States implementing PSI Directive
Directives, Communications
PSI framework
Parliament
Council
Commission
Theme 4: Impact on prices and charges - PART 4
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THE GREEN BOOK
1991
1991 1997 2003
Financial Resources Limited:- Sets Return on investment- Bid for financial resources
Theme 4: Impact on prices and charges - PART 4
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InformationCommissioner
Office ofFair Trading
The National Archives
Office of Public Sector Information
Department of Constitutional Affairs
CabinetOffice
Department ofTrade & Industry
MOUMOU
The Regulators
UK PSI Regulation: October 2006 to current time EU Competition Network
Theme 4: Impact on prices and charges - PART 5
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An IDEA!
BuildIDEA
Viable?
Launch&
Sustain
ProduceBusiness
PlanViable?
Y Y
N N
Customers
Time to Market
Time factors that will be considered:
• Window of opportunity
• Time to achieve return on investment
• Period of profitability
Business testing & planning
• Market analysis• Resource analysis• Risk analysis• Price analysis• Growth analysis• Sustainability analysis
Considering the re-use of PSI opportunity!
Theme 4: Impact on prices and charges - PART 6
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PSIH’s that charge state:
• The quality of the data will fall if they are forced to lower there charges!
• That universal coverage of data maybe sacrificed!
• That the data may not be as current!
That the reason for this is that funds by Parliamentary vote may not be consistent over time.
How can one address these points and are they valid?
Theme 4: Impact on prices and charges - PART 6
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Issues:
- If the PSIH has a public task then it will need to maintain that task irrespective of whether it is vote funded or self funded.
- Charging by PSIH’s is a relatively new policy and as such one can establish whether the QUALITY has changed as a result.
- Is the relationship between quality and level of charge valid? Evidence elsewhere shows that this is not the case.
- Case studies are needed to substantiate the claims. For example National Statistics & EU Statistics are now by enlarge at no charge or marginal cost - has the quality of these services really fallen as a result?
Interested in PSI then why not visit:
www.ePSIplus.net
Theme 4: Impact on prices and charges - PART 7
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Discussion: 30 Minutes