11.05.2020

On the request of the National Company Romanian Post (CNPR), ANCOM analysed the unfair burden character of the net cost incurred by CNPR in providing services within the scope of universal service in 2017. Since the two conditions provided by the law are cumulatively met, the net cost of services within the scope of universal service in 2017 is an unfair burden for CNPR and requires a compensation amounting RON 4,252,328.

This is the first time when ANCOM proposes compensating the net cost incurred by the provision of  services within the scope of universal postal service, given the diminishing scope of universal service, which - according to the primary legislation – no longer includes bulk mail services, respectively services of delivery of the pay slips for social welfare rights.

Conditions for compensating the net cost

The net cost incurred in providing services within the scope of universal service is the difference of the costs incurred by the universal service provider in fulfilling its universal service obligations and the net cost incurred by this provider in the scenario that it conducted its activity exclusively on commercial bases, without universal service obligations.  

The net cost is deemed an unfair burden and it may be compensated only if it cumulatively meets two conditions, regarding the level of the return on average capital employed registered in the universal service segment, and the materiality threshold based on the revenues from the provision of services within the scope of universal service.

ANCOM’s analysis

ANCOM has analysed in detail the data and scenarios used by CNPR in grounding their request for the net cost compensation, the methodology and the actual calculation of the net cost, as well as the additional information made available by CNPR, and has adjusted the data and the calculation of the net cost value whenever necessary. Thus, the Authority has found that the conditions required for establishing whether the net cost of ensuring the universal postal service in 2017 was an unfair burden are cumulatively met. Therefore, CNPR’s obligations as a universal service provider were an unfair burden in 2017.

According to ANCOM, the value of the net cost incurred by CNPR in 2017 following its obligations as a universal service provider - including intangible benefits - is RON 8,726,676, while the maximum amount that can be compensated is RON 4,252,328, i.e. the value of the net cost to be compensated up to the level of the return on average capital employed registered in the universal service segment.

Financing the net cost

The net cost compensation mechanism is to be established by Government Decision, by resorting to one of the following financing sources:

 a) from state budget funds, through the budget of the Ministry of Transport, Infrastructure and Communications, in compliance with the national and European legal framework in the field of state aid;

b) by sharing the net cost among postal service providers and/or users, in compliance with the national and European legal framework in the field of state aid.

Universal postal service

Access to the universal postal service is a person’s right to benefit from the uninterrupted provision of certain postal services (the services within the scope of universal service), at a certain quality level, at any point on the territory of Romania, at affordable tariffs.

Public consultation process

 

The draft decision regarding the compensation of the net cost incurred in the provision of postal services within the scope of universal service in 2017 is available, in Romanian, here. The interested persons are invited to send their suggestions and comments, by 10 June 2020, to the ANCOM headquarters (2 Delea Noua Street, Bucharest 3), by fax to +40.372.845.402 or by e-mail to consultare@ancom.org.ro.