TalkTalk is pleased that Ofcom proposes not to allow BT to put a surcharge on wholesale prices to cover its pension deficit.
Ofcom has rightly recognised that consumers should not bear this surcharge and that it would have been unjust and inconsistent with Ofcom's economic approach. It is illogical to include pension deficit costs in wholesale prices since charges should be based only on costs caused by the provision of service. We are disappointed that Ofcom has proposed not to adjust the cost of capital. We recognise that it is complex to remove the impact of the pension scheme from the cost of capital but we believe that Ofcom's approach of making no adjustment results in excessive prices for customers.
