Powered by Lexis+®
View all Glossary Terms 
CASE STUDY
“Because of the pure breadth and depth of black letter law research and practical guidance that LexisNexis provides, we don't have to rely on counsel as much as perhaps firms that don't use LexisNexis.”
KaurMaxwellAccess all documents on Capacity based charging
Capacity based charging meaning
What does Capacity based charging mean?
Capacity based charging describes pricing for electronic communications or utility services calculated by the capacity reserved on a network (for example, bandwidth in Mbps/Gbps, port or trunk capacity), rather than by actual traffic or minutes/volume used. In practice, the customer pays a fixed or periodic fee for access to specified capacity in switches, routers and transmission links, irrespective of utilisation up to the contracted limit.
The term is descriptive and not generally defined in legislation or case law. In telecoms contracts and wholesale interconnection, it is commonly contrasted with usage-based charging (per‑minute or per‑GB). Regulatory significance arises where providers are subject to Ofcom (UK) or ComReg (Ireland) obligations—such as cost‑orientation, transparency, non‑discrimination and price controls—particularly for operators with Significant Market Power. Capacity based models can affect compliance with these remedies and the allocation of network costs.
In energy and other networks, analogous “capacity charges” may apply based on agreed capacity or maximum demand. Usage and understanding are broadly consistent across England & Wales, Scotland, Northern Ireland and Ireland, though the applicable regulator and specific price control frameworks differ. Lawyers should assess how capacity metrics are defined, measured, upgraded/downgraded, and how service credits and SLAs interact with reserved capacity.
Speed up all aspects of your legal work with tools that help you to work faster and smarter. Win cases, close deals and grow your business–all whilst saving time and reducing risk.
View the related News about Capacity based charging
NEWS
England and Wales Reservoir Safety Reform: ALARP Risk‑Based Regulation, Environmental Permitting, Small Reservoirs, Stronger Enforcement and Charging
What is reservoir safety? Reservoir safety addresses the physical stability and sound operation of reservoirs, with particular attention to their dams and embankments. It concerns public protection and the security of critical infrastructure. Reservoirs serve as a strategic buffer in water resource management, holding surplus during wetter periods to sustain supply through dry spells. In England, the regime currently applies to ‘large raised reservoirs’ able to store more than 25,000 cubic metres of water above ground level. In Wales, the bar is lower, covering reservoirs with a capacity exceeding 10,000 cubic metres. As at March 2025, there were 2,146 such regulated reservoirs in England alone. The potential hazard is considerable: about 2.6 million people could be endangered if a dam failure led to catastrophic flooding. What is the aim of the new regime? The reforms intend to introduce a modernised, future-proof framework for reservoir safety across England and Wales. The goal is to deliver a robust, proportionate and adaptive safety regime that mirrors contemporary engineering and regulatory...
21 May
Read More 
View the related Practice Notes about Capacity based charging
PRACTICE NOTES
Local authority obligations under the WEEE Regulations 2013: DCF approvals and operations, Producer Compliance Balancing System, charging, reporting, self-treatment and non-household/bulky WEEE
The Waste Electrical and Electronic Equipment Regulations 2013, SI 2013/3113 WEEE 2013, SI 2013/3113, implements the requirements of Directive 2012/19/EU, the recast WEEE Directive, and repeals and replaces the Waste Electrical and Electronic Equipment Regulations 2006 (WEEE 2006), SI 2006/3289. The regime is founded on the principle of 'extended producer responsibility', under which producers accept responsibility for the environmental effects of their products, notably at the 'end of their life' when they are discarded as waste. That approach is mirrored in: Packaging Waste Regulations (SI 2007/871 and SI 2015/1640). End of Life Vehicles Regulations (SI 2005/263 and SI 2003/2635). The WEEE Directive (recast), and its predecessor Directive 2002/96/EC (WEEE Directive 2002), are likewise based on extended producer responsibility. See Practice Note: Waste electrical and electronic equipment (WEEE) Directive—snapshot for more information. Local authorities (LAs), or their contractors, operate most Designated Collection Facilities (DCFs) at civic amenity and waste collection sites. In this capacity, WEEE 2013 places obligations on LAs. Hazardous...
21 May
Read More 
