Clause 25 tests

Under the terms of the BBC Agreement, the Trust sometimes undertakes assessments of proposals from the BBC Executive in order to determine whether a Public Value Test (PVT) is needed.  These are called "Clause 25 tests". 

The PVT is a formal assessment process requiring the Trust to assess the public value of the proposed change, Ofcom to assess the market impact of the proposed change and two periods of public consultation. That assessment process usually lasts about six months and is an intensive and time consuming process. The Trust will always undertake a PVT where it needs to, but can use clause 25 of the Agreement as a filter to ensure that the PVT is reserved for significant changes.

In deciding whether or not a change is “significant” and whether a PVT is needed or not, the Trust must have regard to the four considerations set out in Clause 25 of the Agreement; that is, the impact, financial implications, novelty and duration of the proposed change.

In July 2011 the Trust made a commitment to expand its relationship with Ofcom to take full advantage of Ofcom’s understanding of the wider communications sector and, in particular, to invite Ofcom to provide its view of the ‘impact on others’ (e.g. providers or potential providers of alternative products and services) of a proposal. This view will be used to inform the Trust’s decision on whether to apply Clause 25 or proceed to a PVT.