Modification of Condition 6 of NATS (En Route) plc air traffic service licence

Overview

This consultation concerns the need to modify the requirements on NATS (En Route) plc (NERL) regarding the provision of regulatory accounts.

The modification is required as changes to accountancy guidance means that accountancy companies can no longer provide the audit opinion that is currently required.

NERL, as the licence holder, has agreed in principle to the modifications proposed in this document.

Why your views matter

The proposal is being made because guidance by the Institute of Chartered Accountants in England and Wales (ICAEW) means that NERL’s auditors will no longer be able to provide the current audit statement.

The proposal will also formalise that the CAA may require NERL’s auditors to carry out Agreed Upon Procedures (AUPs) on aspects of its regulatory accounts. 

Under section 11(1) of the Transport Act 2000 (the Act) the CAA may modify the conditions of a licence if its holder consents to the modifications. NERL, as the licence holder, has agreed in principle to the modifications proposed in this document.

Under sections 11(2) and (3) of the Act before making modifications to a licence the CAA must publish a notice setting out the proposed modifications, their effect and the reasons for the proposal. The CAA must also state the period (of not less than 28 days) within which representations may be made regarding the proposed modifications. This document constitutes such a notice.

Views invited

The consultation document is available here:

• Proposal to modify Condition 6 (regulatory accounting requirements) of NATS (En Route) plc air traffic service licence: For consultation

Any representations on the proposals in this document should be sent by e-mail to economicregulation@caa.co.uk by 22 July 2019.