Public Service Obligations Research Articles

Reporting different second order elections: A comparative analysis of the 2009 and 2013 local and EU elections on public and commercial UK television news bulletins

Drawing on a systematic content analysis, this article examines how far television news bulletins with different levels of public service obligations reported the EU and local elections in 2009 and the local elections in 2013. The aim is to compare coverage on the main evening terrestrial bulletins in the United Kingdom (the BBC, ITV, Channel 4 and Channel 5) during different types of second order campaigns and according to their regulatory responsibilities. Although UK citizens appear to value local above EU elections, the latter campaign was more extensively reported than the former on all broadcasters, with politicians sourced differently. Most striking was the market deficit of second order election news, notably Channel 5 – the broadcaster with the lightest public service obligations – containing no policy related stories. It was left to the BBC – the broadcaster with the strongest public service commitments – to deliver the most comprehensive and policy-orientated coverage.

Reforming Free-to-Air Broadcasting in Australia

The Australian model of free-to-air (FTA) broadcasting is stuck in the 1950s. This paper reviews the existing Australian approach to FTA broadcasting which provides incumbent networks with complete control over the available spectrum albeit tied down by a range of regulatory constraints. We argue for reform that would split current commercial broadcasting licenses in two, separating ownership of the spectrum (the 'multiplex') from broadcasting. Three commercial multiplex licenses would be auctioned and the successful bidders would either be able to use them for their own broadcasting and/or 'sublet' spectrum to other broadcasters.The public service obligations on commercial broadcasters would largely be eliminated, assisting new entry. These obligations would revert to the two government-owned broadcasters, the ABC and the SBS. The government-owned broadcasters would not need to bid for their multiplexes. They would, however, receive the revenue raised by the spectrum auctions and also be allowed to sublet their spectrum. These sources of revenue would ensure the long-term viability of the ABC and the SBS.Our suggested reforms are similar to existing practice in the UK. We believe that these reforms will increase viewer choice, promote more efficient use of the spectrum, and create both stable funding and a long-term role for the government-owned broadcasters.

Who should pay for renewable energy? Comparing the household impacts of different policy mechanisms in Ireland

Along with environmental impacts, renewable energy affects societal welfare through subsidy costs and electricity price changes. Identifying the distribution of both these impacts is of increasing importance as deployment grows. Subsidies are commonly financed by consumption-based Public Service Obligation (PSO) levies. We compare the distributional impact of different PSO levy structures using the example of a market with high and rising renewables penetration: Ireland. A flate-rate charge is more regressive than a unit-based charge. The regressive impacts of a fixed per-unit charge are greater for a subgroup of heavy electricity users, some with low incomes. Incremental Block Pricing (IBP) exaggerates these effects. A hybrid fixed/variable structure reduces regressivity for heavy users but lessens overall regressivity reduction. Redistributive mechanisms structured like Ireland's Household Benefits Package imperfectly target poorer households, with income and household size-based measures more effective. Including electricity price reductions due to renewables deployment, fixed per-unit charges have a neutral effect while flat charges redistribute some burden from rich to poor. IBP shifts cost to heavy electricity users, predominantly large households. IBP yields a negative net burden for most households across all income groups. These findings are generalised to inform equitable renewable energy subsidy mechanisms both in Ireland and elsewhere.

Comparison of Public–Private Partnerships in Airports and Seaports in Low- and Middle-Income Countries

The paper examines similarities and differences in public–private partnership (PPP) structures between airports and seaports in low- and middle-income countries using data from the World Bank's Private Participation in Infrastructure (PPIAF) database, and puts forward some hypotheses about the reasons for the differences. Qualification of the results is also made with available literature on airport and seaport PPPs. It uses eight granules — the eight “Ws” — as the basis for the analysis, comparing PPPs in terms of “What”, “When”, “Where”, “Why”, “Whole”, “Who”, “Whom”, and “Which way”. Although the similarities between port and airport PPPs generally outweigh their differences, there are several areas in which they diverge. These are the characteristics of the private-sector partner, the PPP models used, the use made of competitive tendering, and the bundling of facilities. Airport investors tend to attract a wider array of investor types than seaports, where the focus is more on specialised operators in build–operate–transfer (BOT) agreements. These differences have their roots in four main structural variations between the two industries: the level of integration of infrastructure and services, economies of scale, public service obligations, and the differing roles of competition and regulation.

La CNMC y la regulación del sector energético

El Tratado de Roma, basado en la libre competencia, cuestionó el tradicional servicio público europeo. Progresivamente, ciertas actividades de interés general pasaron a realizarse por particulares, sujetos a obligaciones de servicio público. La liberalización del sector energético español dio lugar a la CSEN, primer regulador, al que siguió la CNSE. La CNE disponía ya de considerable independencia. La actual CNMC aglutina a los anteriores reguladores sectoriales con la autoridad de competencia, organismos con distintos enfoques. Para evitar posibles inconvenientes de ello, su Consejo funciona habitualmente en salas que conocen por separado de asuntos de competencia y de regulación. Aunque la CNMC dispone, en general, de mayores facultades en el ámbito energético, ciertas funciones de la anterior CNE se traspasarán al Ministerio de Industria, Energía y Turismo, algo criticable.

Competition and public service obligations in European aviation markets

This paper analyzes the effect of universal service policies on the airline markets of five European Union countries (France, Germany, Italy, Spain and the United Kingdom) in the period 2002–2010. Results show that airfare discount schemes for island residents raise demand and positively affect competition and the number of flights at the route level. These effects are evident in France and Italy, but are particularly marked in Spain. By contrast, public service obligations (PSOs) reduce competition on the protected routes, while their effect on the number of flights differs depending on national regulations. In Spain, routes protected with PSOs have greater flight frequencies than those on unprotected routes of similar characteristics, but in France, Italy and the UK the opposite result is found. The empirical model also finds that on routes with low-cost airlines market concentration is smaller and there is a larger number of flights. This result is relevant for the design of universal service policy, since in recent years low-cost airlines have entered a number of thin routes and have increased access to air transportation.

Competition in the railway passenger market in the Czech Republic

This paper describes the development of competition in the Czech railway passenger market. The vertical separation of infrastructure and services occurred in 2003. Open access for commercial passenger services is allowed, and it was utilised in 2011 when the incumbent on the key rail route Prague–Ostrava was challenged by a new operator; a third operator entered the route at the end of 2012. This resulted in an intensive on-track competition with tariff declines and service improvements. With the exception of the Prague–Ostrava route, the operation of other passenger lines is classified as a public service obligation and is subsidised from public budgets. Long-distance services are organised by the Ministry of Transport, and the usual form of procurement used to be a direct awarding of services to the incumbent. However, this is changing as competitive tendering is being used more frequently. Competitive tendering is also theoretically possible in regional transport, but in 2009, regional transport authorities decided to directly award all contracts to the incumbent for 10–15 years, effectively closing regional markets for that period.

Between corporate development and public service: the cultural system reform in the Chinese media sector

If the cultural system reform in the 1980s and 1990s was peripheral and sluggish, in the 21st century it has become a central part of China’s unswerving reform and noticeably gained velocity after 2008. Aiming to build up a cultural market economy, the reform is transforming the majority of cultural institutions into state-owned and even state-controlled shareholding corporations, while strengthening the public service obligation of state financing in a few non-profitable areas. By chronicling and contextualizing reform efforts, this article not only documents some major lines of market development but also examines why and how the state is realigning its public and corporate sectors in such a particular mode of synthesis, especially in two leading media sectors: film and TV broadcasting. While Chinese communication scholars have documented how the overlap between the state and market forces creates dominant cultural processes in China, focusing on the state’s straightforward efforts at commercialization, this article offers an updated understanding of verifiable policy and institutional changes—especially the ‘de-commercialization’ movement embodied by the return of public units.

The Criterion of Advantage in State Aid: Altmark and Services of General Economic Interest

Advantage is one of the four cumulative criteria that determine whether the EU state aid regime is applicable. Here we look at advantage in relation to compensation for public service obligations. In its Altmark ruling of 2003 the CJEU has fashioned a four part test that, if met, means that the compensation is merely a quid pro quo and no advantage is conferred, so there is no aid. Such a finding can be made by all competent national courts. Based on Altmark the Commission has adopted a regulatory package for services of general economic interest (SGEI: EU terminology for public services) in 2005 and 2011. This applies if not all the conditions set by the Court are met, so aid is present but may still be found compatible with the internal market. The Commission has a monopoly on making such a finding. For certain sectors the package provides a (general) block exemption which is directly applicable. This is aimed at welfare services. The package also provides a framework for individual exemption decisions by the Commission. This is aimed at the utilities. Two short case studies are provided here, one on healthcare and one on broadband services.

Social Housing Organisations in England and The Netherlands: Between the State, Market and Community

Social Housing Organisations in England and The Netherlands: Between the State, Market and Community

Social Housing Organisations in England and The Netherlands: Between the State, Market and Community

Social Housing Organisations in England and The Netherlands: Between the State, Market and Community

Social Housing Organisations in England and The Netherlands: Between the State, Market and Community

Social Housing Organisations in England and The Netherlands: Between the State, Market and Community

Study on the Evaluation of the Subsidized Fertilizer Distribution System

In order to ensure the delivery of the subsidized fertilizer to the farmer in “6 precision-goals”, i.e., quantity precision, type precision, time precision, place precision, quality precision and price precision in accordance to regulated Highest Retail Sale Price, the government has regulated the distribution system of subsidized fertilizer from the plant to the farmers by form of regulation issued by Indonesian Ministry of Trading. The purpose of this research is to evaluate the existing distribution system of subsidized fertilizer which is managed by one of the Public Service Obligation State-Owned Companies (PSO-SOC). The evaluation is carried out by comparing the cost of the existing distribution system with the proposed distribution system. Cost optimization of the proposed system makes use of Mixed Integer Linier Programing (MILP). Optimization is performed by restructuring the cluster and distribution warehouse, allowing through trips from plant directly to distributor’s warehouse, and skipping the producer’s warehouse storing. The proposed cluster restructuring can reduce the existing cost to 94% - 98%, while through trips can reduce the total cost to 61% - 72%. In case where through trips is allowed and producer’s warehouse is in operation and functioned as a buffer, the total cost is reduced to 64% - 78% from the existing cost. Based on the optimization result, it is concluded that the existing subsidized fertilizer distribution system could be improved by allowing through trips, while existing producer’s warehouse is still in operation as the buffer warehouse to ensure that the minimum stock is fulfilled. It is noted, however, that this system requires adequate information technology concurrently.

EFEKTIFITAS TEKNIS DAN EFEKTIFITAS PELAYANAN PELAKSANAAN PUBLIC SERVICE OBLIGATION (PSO) KERETA API KELAS EKONOMI ANGKUTAN PERKOTAAN

<span style="font-size: 11.0pt; mso-bidi-font-size: 10.0pt; font-family: 'Amasis MT','serif'; mso-fareast-font-family: Calibri; mso-bidi-font-family: 'Times New Roman'; mso-ansi-language: EN-AU; mso-fareast-language: IN; mso-bidi-language: AR-SA;" lang="EN-AU">Public Service Obligation </span><span style="font-size: 11.0pt; mso-bidi-font-size: 10.0pt; font-family: 'Amasis MT','serif'; mso-fareast-font-family: Calibri; mso-bidi-font-family: 'Times New Roman'; mso-ansi-language: IN; mso-fareast-language: IN; mso-bidi-language: AR-SA;" lang="IN">(PSO</span><span style="font-size: 11.0pt; mso-bidi-font-size: 10.0pt; font-family: 'Amasis MT','serif'; mso-fareast-font-family: Calibri; mso-bidi-font-family: 'Times New Roman'; mso-ansi-language: EN-AU; mso-fareast-language: IN; mso-bidi-language: AR-SA;" lang="EN-AU">) </span><span style="font-size: 11.0pt; mso-bidi-font-size: 10.0pt; font-family: 'Amasis MT','serif'; mso-fareast-font-family: Calibri; mso-bidi-font-family: 'Times New Roman'; mso-ansi-language: IN; mso-fareast-language: IN; mso-bidi-language: AR-SA;" lang="IN">is </span><span style="font-size: 11.0pt; mso-bidi-font-size: 10.0pt; font-family: 'Amasis MT','serif'; mso-fareast-font-family: Calibri; mso-bidi-font-family: 'Times New Roman'; mso-ansi-language: EN-AU; mso-fareast-language: IN; mso-bidi-language: AR-SA;" lang="EN-AU">government's obligation to provide affordable price </span><span style="font-size: 11.0pt; mso-bidi-font-size: 10.0pt; font-family: 'Amasis MT','serif'; mso-fareast-font-family: Calibri; mso-bidi-font-family: 'Times New Roman'; mso-ansi-language: IN; mso-fareast-language: IN; mso-bidi-language: AR-SA;" lang="IN">and </span><span style="font-size: 11.0pt; mso-bidi-font-size: 10.0pt; font-family: 'Amasis MT','serif'; mso-fareast-font-family: Calibri; mso-bidi-font-family: 'Times New Roman'; mso-ansi-language: EN-AU; mso-fareast-language: IN; mso-bidi-language: AR-SA;" lang="EN-AU">to optimize service in typicaly economy class </span><span style="font-size: 11.0pt; mso-bidi-font-size: 10.0pt; font-family: 'Amasis MT','serif'; mso-fareast-font-family: Calibri; mso-bidi-font-family: 'Times New Roman'; mso-ansi-language: IN; mso-fareast-language: IN; mso-bidi-language: AR-SA;" lang="IN">of urban </span><span style="font-size: 11.0pt; mso-bidi-font-size: 10.0pt; font-family: 'Amasis MT','serif'; mso-fareast-font-family: Calibri; mso-bidi-font-family: 'Times New Roman'; mso-ansi-language: EN-AU; mso-fareast-language: IN; mso-bidi-language: AR-SA;" lang="EN-AU">railway </span><span style="font-size: 11.0pt; mso-bidi-font-size: 10.0pt; font-family: 'Amasis MT','serif'; mso-fareast-font-family: Calibri; mso-bidi-font-family: 'Times New Roman'; mso-ansi-language: IN; mso-fareast-language: IN; mso-bidi-language: AR-SA;" lang="IN">commuting</span><span style="font-size: 11.0pt; mso-bidi-font-size: 10.0pt; font-family: 'Amasis MT','serif'; mso-fareast-font-family: Calibri; mso-bidi-font-family: 'Times New Roman'; mso-ansi-language: EN-AU; mso-fareast-language: IN; mso-bidi-language: AR-SA;" lang="EN-AU">. It is therefore important to evaluate its technical and service effectiveness. This </span><span style="font-size: 11.0pt; mso-bidi-font-size: 10.0pt; font-family: 'Amasis MT','serif'; mso-fareast-font-family: Calibri; mso-bidi-font-family: 'Times New Roman'; mso-ansi-language: IN; mso-fareast-language: IN; mso-bidi-language: AR-SA;" lang="IN">article</span><span style="font-size: 11.0pt; mso-bidi-font-size: 10.0pt; font-family: 'Amasis MT','serif'; mso-fareast-font-family: Calibri; mso-bidi-font-family: 'Times New Roman'; mso-ansi-language: EN-AU; mso-fareast-language: IN; mso-bidi-language: AR-SA;" lang="EN-AU"> aims to assess the effectiveness of PSO railway services in economy class of urban railway, in accordance with the initial goals of PSO implementation. </span><span style="font-size: 11.0pt; mso-bidi-font-size: 10.0pt; font-family: 'Amasis MT','serif'; mso-fareast-font-family: Calibri; mso-bidi-font-family: 'Times New Roman'; mso-ansi-language: IN; mso-fareast-language: IN; mso-bidi-language: AR-SA;" lang="IN">Using </span><span style="font-size: 11.0pt; mso-bidi-font-size: 10.0pt; font-family: 'Amasis MT','serif'; mso-fareast-font-family: Calibri; mso-bidi-font-family: 'Times New Roman'; mso-ansi-language: EN-AU; mso-fareast-language: IN; mso-bidi-language: AR-SA;" lang="EN-AU">Data Envelopment Analysis (DEA)</span><span style="font-size: 11.0pt; mso-bidi-font-size: 10.0pt; font-family: 'Amasis MT','serif'; mso-fareast-font-family: Calibri; mso-bidi-font-family: 'Times New Roman'; mso-ansi-language: IN; mso-fareast-language: IN; mso-bidi-language: AR-SA;" lang="IN"> tool, t</span><span style="font-size: 11.0pt; mso-bidi-font-size: 10.0pt; font-family: 'Amasis MT','serif'; mso-fareast-font-family: Calibri; mso-bidi-font-family: 'Times New Roman'; mso-ansi-language: EN-AU; mso-fareast-language: IN; mso-bidi-language: AR-SA;" lang="EN-AU">echnical effectiveness analysis is carried out by comparing the input (operating expenses, number of facilities, and amount of PSO) and output (and revenue passenger kilometers). Services Effectiveness is aimed to determine the effectiveness of service of two inputs that are train kilometers and kilometer of seat</span><span style="font-size: 11.0pt; mso-bidi-font-size: 10.0pt; font-family: 'Amasis MT','serif'; mso-fareast-font-family: Calibri; mso-bidi-font-family: 'Times New Roman'; mso-ansi-language: IN; mso-fareast-language: IN; mso-bidi-language: AR-SA;" lang="IN">s</span><span style="font-size: 11.0pt; mso-bidi-font-size: 10.0pt; font-family: 'Amasis MT','serif'; mso-fareast-font-family: Calibri; mso-bidi-font-family: 'Times New Roman'; mso-ansi-language: EN-AU; mso-fareast-language: IN; mso-bidi-language: AR-SA;" lang="EN-AU"> by comparing the 2 output namely kilometers passengers and revenue. The results show that only 4 out of 12 DMU have maximum level of technical effectiveness, and only 3 out of 12 DMUs are having effective service. </span>

Independent Local Radio in the West Midlands

This essay presents the comparative analysis of two Independent Local Radio (ILR) stations in the West Midlands during the 1970s. ILR was a public, community-based, radio service funded by the sale of spot advertising, and the success or the failure of an ILR station depended on the outlook and experience of its management team. BRMB represented the appropriate balance of experience and expertise. It was headed by a managing director with a commercial background and a programme controller experienced in regulated public service broadcasting. Beacon was a station with a management from a commercial broadcasting background, and their approach brought the station into conflict with the Independent Broadcasting Authority (IBA), ILR's regulator. The profit motive took precedence over the fulfilment of its public service obligations, and it was this which caused the IBA to remove the Beacon licence. This essay will, therefore, address two principal questions: why were the experiences of the two West Midlands ILR stations in the 1970s so different and why were they treated so differently by the regulator?

Setting public service obligations in low-demand air transportation networks: Application to the Azores

The deregulation of air transportation was expected to have negative implications on regions with insufficient passenger demand to generate profits – regions where air transportation often plays a crucial role with respect to the mobility of people and goods, as well as to the development of tourism. Because of this, governments have decided to accompany the deregulation process with the adoption of subsidy schemes aimed at mitigating the anticipated consequences to low-demand regions. The subsidy scheme adopted in the European Union is known as the Public Service Obligations (PSO) system. In this paper, we propose a decision approach to assist governments (aviation authorities) in the setting of PSO standards consistent with the budget available to finance their implementation. The approach is based on an integrated flight scheduling and fleet assignment model to determine the air transportation network that minimizes the total social costs of satisfying a given origin/destination target demand. The usefulness of the approach is illustrated with an application to the network of the Azores, one of the main European networks fully operated according to the PSO system.

The Importance of Completeness and Clarity in Air Transport Contracts in Remote Regions in Europe and Australia

Abstract This article compares the current experience of public service obligations carriers in Europe and Australia ex ante with regard to contract clarity, and then ex post regarding the completeness of their transport contracts. Particularly in times of government austerity, clear contracts are of immense importance to transport authorities in order to achieve value for money when procuring air-transport services. Weak contracts can result in uncertainties, transaction costs, and poor performance of regional airlines. Our results show differences across carriers that go beyond differences associated with geographic region, and highlight the importance of trust and good relationships between transport authorities and operators.

Efficient procurement of public air services—Lessons learned from European transport authorities' perspectives

This paper set out to identify the best practice from different European policy approaches by viewing issues from a sponsoring public transport authority perspective. The heart of this paper is a survey of European air service procurement authorities. We examine the authorities' perspectives on their rationale for imposing public service obligations (PSOs) on scheduled air services including likely future funding trends and investigate various aspects of the procedures connected with the PSO process (e.g., transparency of subsidies and risk sharing with operators). We also explore various aspects of the obligations that authorities actually impose upon routes and operators (e.g. maximum fare, aircraft size etc). A particular interest of this paper is in the authorities' policies regarding marketing the PSO and promoting competition in their tendering exercises. The lessons derived from this EU experience are discussed with a view in assisting policy makers when promoting and drafting their own regional air transport programmes, or in further refining existing schemes.

Water Price Regulation: A Review of Portuguese Tariff Recommendations

The context of severe economic crisis and financial constraints has reinforced existing pressures on services considered to be of community interest by public authorities and therefore subject to specific public service obligations. This is the case of the water industry, with increased pressure for full cost recovery and on the use of prices as a tool for the management of water resources in EU countries. The Portuguese situation confirms these trends and the expected increases in water tariffs raise special concerns. In these volatile times it is particularly relevant to analyze the management and regulatory work of the Portuguese Water and Waste Services Regulation Authority, which recently acquired extended powers in pricing regulation. Findings reveal a complexity of tariff schemes in Portuguese municipalities, with tariff recommendations being a clear commitment to selected economic theory proposals and the harmonization of price schemes in the heterogeneous water utilities national context.

Competition and Cooperation on European Southeast Air Transport Market

Regional Air Transport Market of Southeast Europe is becoming affected by all modes of increasing competition. This Paper will consider the different levels of achievements in traffic results of air carriers and airports of the Southeast Europe including macroeconomic analyses of 11 countries belonging to this the region. They represent more than 30 carriers and almost 40 airports. The year 2007 and 2008 saw high increase of the passenger and cargo carried within the region. More than 30 million passengers were carried and almost 84,000 tones of freight and mail. On 19 primary airports of the Southeast Europe it was carried more than 29 million passengers which is increase of 33 percent compared with the year 2006. Under above-mentioned increase, it is important to emphasize that the growth of airport handled passenger on new born EU countries Bulgaria and Romania was extremely high. Paper will also analyze categorization of the airports according to EU documents and directives. The future development under the new economic circumstances means also adjustments of business models that have been implemented. It also means necessity to cooperate and find out efficient mode of integration which will follow air traffic and legal framework of the EU. Positive example can be implementation of PSO (Public Service Obligation) for air carriers of the Southeast Europe network. Another challenge is capability to provide and realize privatization process for some of the most successful air carriers. The paper will also consider the air traffic forecasts of the Southeast Europe region, which will follow expected implementation of improved model and benefits for the population and economy of 11 countries.