50.— (1) Where the Authority proposes to secure public passenger transport services it may determine that a public service obligation is to be applied in respect of that service.

(2) Where the Authority makes a determination under subsection (1) that a public service obligation is to be applied, it shall secure the public passenger transport services by means of a public service contract, which shall be subject to section 48.

(3) A contract to which this section relates must be made in compliance with Regulation No. 1370/2007.

(4) A public transport operator shall satisfy the Authority, with such information and in such form as the Authority may specify, in respect of—

(a) any payment for the performance of a public service obligation, that the payment does not exceed that which is necessary to cover all or part of the costs incurred in discharging the public service obligation taking into account the relevant receipts and a reasonable profit for discharging the obligation, and

(b) the costs incurred in discharging the public service obligation, that such costs do not exceed those, which in the opinion of the Authority, an operator that is well run and adequately provided with means of transport would be expected to incur in discharging the public service obligation.