5.—(1) The Regulator may charge an annual fee to the operator.
(2) The annual fee charged must not exceed the total of the costs incurred by the Regulator during the twelve month period to which the fee relates in exercising the functions under this Schedule in respect of the alternative arrangement to which the fee relates.
(3) Where the Regulator charges a fee in accordance with sub-paragraph (1), the operator must—
(a)pay a first annual fee to the Regulator before the expiry of a twelve month period commencing on the date upon which the designation certificate was issued; and
(b)pay an annual fee to the Regulator before each anniversary of the issue of the designation certificate.
(4) Sub-paragraph (3)(b) does not apply in relation to an anniversary of the issue of a designation certificate on or immediately before which the designation certificate ceases, by virtue of its terms, to have effect.
(5) If any fee required pursuant to this paragraph is not paid when it falls due, the Regulator may recover the amount of the payment as a debt.