1. Financial impact of the PSI Directive: Pricing and Charging Key Issues Chris Corbin ePSIplus Analyst Prague, 30 October 2006 funded by eContentPlus

2. 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 www.ePSIplus.net

3. 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

4. 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

5. ePSIplus website Country Reports PSI Bibliography 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

6. 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 www.ePSIplus.net

7. Theme 4: Impact on prices and charges - PART 2 www.ePSIplus.net 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

8. 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 www.ePSIplus.net

9. 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 www.ePSIplus.net

10. A methodology to assess movements in prices and charges Monitor PSIH’s that had a charging regime in place prior to 1 st July 2005 Where PSIH’s have introduced a charging regime since 1 st 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 www.ePSIplus.net

11. Theme 4: Impact on prices and charges - PART 2 www.ePSIplus.net

12. 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 www.ePSIplus.net

13. Theme 4: Impact on prices and charges - PART 2 www.ePSIplus.net

14. Theme 4: Impact on prices and charges - PART 2 www.ePSIplus.net Potential Data & Information available for re-use PSI re-users (Value Chain) Information Consumers Public Sector Input Value Output Value Value added = O/P Value - I/P Value Economic analysis: simplified model for re-use of PSI

15. Theme 4: Impact on prices and charges - PART 2 www.ePSIplus.net Potential Data & Information available for re-use PSI re-users (Value Chain) Information Consumers Public Sector Compliance Configuration of Public Sector Operating framework Geographic distribution Internal data flows (IPR/Cross charging) Investment Number of entities Pricing models Productivity ROCE Terms & Conditions Transparency Configuration of value chain Geographic distribution Investment Number of entities Pricing models Productivity Re-use sectors ROCE Worth of organisation Economic analysis: simplified model for re-use of PSI: Obtaining the data

16. 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 www.ePSIplus.net

17. 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 www.ePSIplus.net

18. Theme 4: Impact on prices and charges - PART 2 www.ePSIplus.net

19. Theme 4: Impact on prices and charges - PART 2 www.ePSIplus.net

20. Theme 4: Impact on prices and charges - PART 2 www.ePSIplus.net

21. Theme 4: Impact on prices and charges - PART 2 www.ePSIplus.net

22. 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

23. 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 www.ePSIplus.net

24. Theme 4: Impact on prices and charges - PART 2 www.ePSIplus.net

25. Theme 4: Impact on prices and charges - PART 2 www.ePSIplus.net

26. 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 www.ePSIplus.net

27. Theme 4: Impact on prices and charges - PART 2 www.ePSIplus.net

28. Theme 4: Impact on prices and charges - PART 2 www.ePSIplus.net UK Met Office

29. Theme 4: Impact on prices and charges - PART 2 www.ePSIplus.net Irish Met Office

30. Theme 4: Impact on prices and charges - PART 2 www.ePSIplus.net ECOMET

31. Article 10 Non-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 www.ePSIplus.net

32. Theme 4: Impact on prices and charges - PART 2 www.ePSIplus.net A public sector data organisation C A Statutory function B Trading function Company aCompany 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

33. Theme 4: Impact on prices and charges - PART 2 www.ePSIplus.net National Mapping Agency Local Government 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

34. Theme 4: Impact on prices and charges - PART 3 www.ePSIplus.net PSI Sold PSI Free PSI not available Customer PSI re-users (Value Chain) Analysis of PSI and data flows

35. Theme 4: Impact on prices and charges - PART 3 www.ePSIplus.net PSI Sold PSI Free PSI not available 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

36. Theme 4: Impact on prices and charges - PART 3 www.ePSIplus.net Economic analysis: simplified model for re-use of PSI Related areas that impact: eGovernment as public sector moves down stream,procurement, PPP PSI CustomerCustomer Producer Professional Services 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. Information Consumers Other Data Suppliers

37. Theme 4: Impact on prices and charges - PART 3 www.ePSIplus.net Simplified Value Chain Data Collector Data packager Data Wholesaler Data Distributor Data Integrator Customer Data Collector Data packager Data Integrator PSIPSI Linguistic Services Data Locator Services Semantic Services Directory Services Public Sector Trading Financial Services

38. Theme 4: Impact on prices and charges - PART 4 www.ePSIplus.net Parliament Setting the legal framework Scrutiny National Audit Data Privacy & Protection Competition Information Regulation Public Sector Public Sector Organisation Reuse of PSI Policy National re-use PSI framework Financial Framework and Risk Analysis Framework Civil Society (including the market)

39. Theme 4: Impact on prices and charges - PART 4 www.ePSIplus.net 25 Member States implementing PSI Directive Directives, Communications PSI framework Parliament Council Commission

40. Theme 4: Impact on prices and charges - PART 4 www.ePSIplus.net THE GREEN BOOK 1991 1997 2003 Financial Resources Limited: - Sets Return on investment - Bid for financial resources

41. Theme 4: Impact on prices and charges - PART 4 www.ePSIplus.net Information Commissioner Office of Fair Trading The National Archives Office of Public Sector Information Department of Constitutional Affairs Cabinet Office Department of Trade & Industry MOU The Regulators UK PSI Regulation: October 2006 to current time EU Competition Network

42. Theme 4: Impact on prices and charges - PART 5 www.ePSIplus.net An IDEA! Build IDEA Viable? Launch & Sustain Produce Business Plan Viable? Y Y NN CustomersCustomers 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!

43. Theme 4: Impact on prices and charges - PART 6 www.ePSIplus.net 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?

44. Theme 4: Impact on prices and charges - PART 6 www.ePSIplus.net 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?

45. Interested in PSI then why not visit: www.ePSIplus.net

46. Theme 4: Impact on prices and charges - PART 7 www.ePSIplus.net Discussion: 30 Minutes