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Cost Recovery by the OSDR Partnership

The two partners in the Offshore Safety Directive Regulator (OSDR) competent authority, DECC and HSE, recover costs for various aspects of regulatory work.  HSE and DECC both recover costs according to time spent on a particular cost recoverable activity multiplied by predetermined hourly rates.  The HSE and DECC hourly rates are different because the costs that can be recovered are determined by different pieces of legislation.  HSE has one ‘all inclusive’ rate, whereas DECC has two rates covering ‘specialist’, and ‘non-specialist work’.  The different basis for cost recovery in DECC and HSE can lead to questions from stakeholders about how OSDR recovers costs. 

OSDR is not a legal entity, so cost recovery for its activities must be made separately by DECC and HSE according to the separate legislation.

HSE recovers costs using a single, predetermined hourly rate for time spent by HSE Inspectors on particular activities.  The rate is reviewed annually and amended if necessary.  It includes elements associated with the activity in the following headings:

A guide to HSE’s offshore cost recovery for activities, including the current fee, can be found on the HSE website.

DECC recovers costs using two predetermined hourly rates.  One is for time spent by DECC Inspectors and Environmental Managers (specialist staff), on particular cost recoverable activities.  The other is for time spent by administrative (non-specialist) officers on particular cost recoverable activities.  The rates are reviewed annually and amended if necessary. The fee for a particular cost recoverable activity is the total of the hours spent x the applicable rate.  In summary the rate includes costs in the following headings:

Further details of DECC’s Offshore Environment cost recovery for offshore functions, including the current fees, can be found on the DECC website.

Updated: 2016-02-09