Marginal Cost Pricing criteria
The UK Office of Public Sector Information (OPSI) PerSpectIves blog has published a topic for consideration and feedback titled: Exceptions to marginal cost pricing
The posting states:
“Most government information should be available for re-use at marginal cost, which often in practice means free of charge, especially where the information is published online. This will maximise social and economic value, and supports the Government’s response to the recommendations made by the Power of Information Taskforce
There are some instances when public sector organisations can charge for supplying information which recipients intend to process and re-use. Further clarification is given in Budget 2009.
Government policy for charging is set out in HM Treasury's document “Managing Public Money”. Government information is normally made available for re-use at marginal cost. There are some cases where a department has added value to the information to create a commercial product. In those cases the policy is to charge at full cost plus an appropriate rate of return. This information trading is policed under the Information Fair Trader Scheme (IFTS), which ensures that there is a simple, fair and transparent approach to licensing.
Where departments and agencies wish to charge for the re-use of data, they will be required to justify departures from the marginal cost model. This justification ensures that Government does not limit or restrict re-use.
The Government’s response to the Power of Information Taskforce’s recommendation 10 explained that OPSI would develop a series of tests, or criteria, to help assess whether charges are appropriate.
We welcome your views and comments on the criteria that should be applied.
Criteria
A Department or Agency’s responses to the following questions will enable OPSI to make a decision as to whether a departure from the marginal cost model is appropriate on a case by case basis. Government trading funds, which are required to maximise income, are exempt from these tests, although they are subject to the requirements of IFTS.
Draft Criteria”
Regulator monitoring Ordnance Survey
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