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ANCOM proposes the compensation of the net cost of providing postal services within the scope of universal service, in 2019

15.07.2021
 
 
Following the compensation request received from the National Company Romanian Post (CNPR), the universal postal service provider, ANCOM analysed the data used by the provider in preparing the request and the unfair burden character of the net cost of the provision of universal service in 2019, and proposes the compensation of this net cost. The Authority’s analysis revealed that the two legal conditions are cumulatively met, thetefore the net cost incurred by the provision of services within the scope of universal service was an unfair burden for CNPR and a compensation, in the amount of RON 9,640,585, is justified.
 
Conditions and mechanism for the compensation of the net cost
 
The net cost of the universal service obligations is the difference between the net costs borne by the universal service provider as a result of fulfilling the universal service obligations and the net cost of the same provider if it operated exclusively on commercial bases, without the universal service obligations.
This cost is an unfair burden and can be compensated only if two legal conditions are cumulatively met regarding the level of return on average capital employed recorded from the provision of services within the scope of universal service and the materiality threshold based on the revenues registered from the provision of services within the scope of universal service.
Subsequent to ANCOM’s adopting a decision on the compensation of the net cost for the provision of universal service, the mechanism for the compensation of the net cost will be established by Government decision, specifying one of the following financing sources:
a) from state budget funds through the budget of the relevant Ministry, with due regard to the national and European legal framework in the field of state aid;
b) through net cost sharing between postal service providers and/or users, with due regard to the national and European legal framework in the field of state aid.
 
ANCOM’s analysis on the compensation of the net cost of the provision of services within the scope of universal service, in 2019
 
ANCOM analysed in detail the data and assumptions used by CNPR in preparing the net cost compensation request, the methodology and the actual calculation of the net cost, as well as the additional information provided by CNPR. Where necessary, the Authority adjusted the data and the actual calculation of the net cost value. ANCOM found that the conditions required for establishing the unfair burden character of the net cost of the provision of universal service in 2019 are cumulatively met. Thus, the provider’s obligations as a universal serfvice provider were an unfair burden for CNPR in 2019.
According to ANCOM's calculation, the value of the net cost registered by CNPR in 2019 in the fulfilment of its universal service obligations, including intangible benefits, is RON 18,372,178. The maximum amount that can be compensated is RON 9,640,585. This is the value of the net cost that could be compensated until reaching the reasonable level of return on average capital employed registered from the provision of services within the scope of universal service.
 
The public consultation
 
The draft decision regarding the compensation of the net cost of the provision of postal services within the scope of universal service in 2019 is available, in Romanian, here.The interested persons are invited to submit their comments and suggestions, by 16.08.2021, at the ANCOM headquarters (2 Delea Noua Street, Bucharest 3), using the Authority’s online registry, or at the Authority’s Regional Divisions. Comments can also be sent by fax at +40 372 845 402 or by e-mail at consultare@ancom.org.ro.
 
Background info
 
Access to the universal postal service represents the right of any person to benefit from the permanent provision of postal services (services included in the scope of the universal service), of a certain quality, in any point within the Romanian territory, at affordable rates.
ANCOM designated the National Company Romanian Post S.A. (CNPR) as a universal service provider by ANCOM President’s Decision no.1363/2019, for provision of all the services within the scope of universal postal service for the period 1 January 2020 – 31 December 2024, throughout national territory.
ANCOM decided to compensate the net cost of the provision of services within the scope of universal postal service by RON 4,252,328 for 2017 and by RON 6,285,244 for 2018.Â