On 11 August 2016, ANCOM received a request from The National Company “Romanian Post” (CNPR) regarding the compensation of the net cost, together with the statements on the costs, revenues and capital employed  corresponding to the provision of services within the scope of universal service in 2015 and, furthermore, a statement of facts on verifying the request regarding 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 legislation in force, the net cost is an unfair burden if two conditions are cumulatively met, regarding the level of return on average capital employed and respectively the materiality threshold, considered in respect to the revenues from the provision of services within the scope of universal service.

ANCOM analysed the request for the compensation of the net cost corresponding to 2015 and the additional information provided by CNPR, verified and adjusted – where necessary - the assumptions and the calculations used by this provider in determining the value of the net cost specified in the compensation request. Following these adjustments, ANCOM established the value of the net cost for the provision of services within the scope of universal service in 2015.

ANCOM also assessed the unfair burden character according to the relevant criteria provided by the law. Having analysed CNPR’s separate accounts, ANCOM found that the first criterion for assessing the unfair burden character is fulfilled, the provider registering in 2015 a return rate on average capital employed in the universal service segment below the value of the weighted average cost of capital established by ANCOM. Nevertheless, the second criterion for assessing the unfair burden character is not fulfilled, since the value of the net cost established by ANCOM lies below the materiality threshold of 3% of the revenues obtained by CNPR from the provision of services within the scope of universal service in 2015.

Therefore, the net cost for the provision of universal service in 2015 is not an unfair burden for CNPR, and the corresponding net cost cannot be compensated.

Additional information on the assessment of the net cost for 2015 is available, in Romanian, in the Explanatory memorandum to ANCOM President’s Decision no. 327/2017 on the request for compensation of the net cost for providing services within the scope of universal service in 2015.