S.L. 601.4 Art. 5Public undertakings required to maintain separate accounts.

(1) A public undertaking that enjoys a special or exclusive right granted by the Government of Malta pursuant to Article 86(1)

of the Treaty, or that is entrusted with the operation of a service of general economic interest pursuant to Article 86(2) of the Treaty, and receives public service compensation in any form whatsoever in relation to such service and which carries on other activities, is required to maintain separate accounts that reflect clearly its financial and organisational structure in:

(a) the costs and revenues associated with different activities;

(b) the full details of the methods by which costs and revenues are assigned or allocated to different activities.

(2) For the purpose of subregulation (1), an undertaking that is required to maintain separate accounts shall take the following measures:

(a) the internal accounts corresponding to different activities shall be kept separate;

(b) all costs and revenues shall be correctly assigned or allocated on the basis of consistently applied and objectively justifiable cost accounting principles;

(c) the cost accounting principles according to which separate accounts are maintained shall be clearly established: Provided that the requirements in this regulation shall not apply to:

(i) undertakings, as regards services the supply of which is not liable to affect trade between Member States to an appreciable extent;

(ii) undertakings whose total annual net turnover over the period of the two financial years preceding any given year in which they enjoy a special or exclusive right granted by the Government of Malta pursuant to Article 86(1) of the Treaty, or in which they are entrusted with the operation of a service of general economic interest pursuant to Article 86(2) of the Treaty is less than Euro 40 million, except for public credit institutions where the corresponding threshold shall be a balance sheet total of Euro 800 million;

(iii) undertakings which have been entrusted with the operation of services of general economic interest pursuant to Article 86(2) of the Treaty if the State aid in any form whatsoever, including any grant, support or compensation they receive was fixed for an appropriate period following an open, transparent and non-discriminatory procedure.