Guidance for local bodies in respect to local broadband projects about clawback mechanism.
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Clawback refers to the repayment of any excess subsidy that may have been granted to a beneficiary of State aid.
In the case of the roll out of a subsidised local broadband project, it refers to the possibility that a local body may have to recover any excess subsidy that the successful Framework supplier concerned has benefited from.
It is a requirement of the European Commission’s Broadband Guidelines that the successful supplier is not over-compensated. Over-compensation could arise, for example, if demand for the wholesale broadband services is materially greater than originally expected or if the costs of delivering those services are materially less than anticipated.