Compensation of the net cost for the year 2014

For the compensation of the net cost, ANCOM received on 14 August 2015 CNPR’s net cost request, along a statement on the costs, revenues and capital employed for the provision of services within the scope of universal service for the year 2014, and a Factual Findings Report on the evaluation of the request for the compensation of the net cost for the provision of services within the scope of universal service, drawn up by an independent auditor.

According to the new provisions entered into force in 2015, the net cost is considered an unfair burden if two conditions, regarding the level of return on average capital employed and the materiality threshold of the revenues from the provision of services within the scope of universal service are simultaneously met.

For evaluating the unfair burden character based on the conditions above, ANCOM extracted the relevant information from the separate financial statements drawn up by CNPR for the year 2014.

In order to evaluate the extent to which the net cost is an unfair burden for CNPR, ANCOM calculated the level of return on capital employed for the universal service and found that, in 2014, the universal service provider registered profit in the segment of services within the scope of universal service and that the return on capital employed was above the reasonable profit level, set by ANCOM at 13.10%. Taking into account that the first criterion had not been met, and thus the second criterion needed no longer to be analysed, the Authority concluded that the amount of the net cost was not an unfair burden for the universal service provider, was not to be compensated.

Additional information on the evaluation of the net cost for the year 2014 is available in the Endorsement Report to ANCOM President’s Decision no. 29/2016 on the request for the compensation of the net cost for the provision of postal services within the scope of universal service in 2014.