ERGP report: letter prices rising faster than parcel prices amid boom in parcel volumes
27 March 24
Michael van Maris van Dijk
Since 2018, European universal service providers have increased their domestic priority letter prices by about 40% but decreased their average parcel prices by 1.3%. This trend may reflect that operators are responding to the long-term market dynamics of decreasing letter volumes, increasing parcel volumes and effective competition in the parcels market.
Ofcom plans to continue focusing on ensuring universal postal service affordability and reliability in 2024/25
27 March 24
Armen Ghalumyan
Ofcom’s annual workplan for 2024/25 has not set forward any specific new priority activities for the postal regulation. The UK’s communications regulator plans to continue with its typical postal regulatory duties, specifically related to ensuring the affordability and reliability of the universal service. At the same time, Ofcom identified four priority outcomes for its work in other sectors.
Poland may compensate universal postal service provider before the European Commission approves state aid
04 March 24
Monika Kačeriaková
Polish MPs proposed amendments to the Postal Act to allow for more flexible financing of the universal service net cost of Poczta Polska. Upon adoption of the proposal, the postal operator’s net cost of the universal service provision may be compensated from the state budget before the European Commission’s approval of state aid.
The Czech government is preparing substantial changes to the Postal Act
26 February 24
Monika Kačeriaková
The Czech government proposed to substantially amend the Postal Act to reflect recent developments in the postal sector. Besides changes to the quality and financing of the universal service, the draft would enhance consumer protection and give further powers to the postal regulator.
Commission workshop explores impact of different scenarios on postal operations and regulation
16 February 24
Armen Ghalumyan
Postal stakeholders provided their views in response to the first stage of the European Commission’s study on the future of the postal sector. In an online workshop held on 13 February 2024, the study team discussed with participants the critical factors influencing the future development of the sector, as well as the five proposed scenarios for evolution by the year 2040. The final study will inform the Commission’s report to the Council on the postal services market, including any recommended revisions to the EU postal regulatory framework.
CNMC suggests modifying the regulatory cost accounting methodology while reviewing universal service prices for 2024
08 February 24
Carmen Mateas
The Spanish postal regulator, CNMC, carried out its annual review of Correos' universal postal service prices for 2024 and concluded that these prices are affordable, transparent and non-discriminatory, but that the discounts offered to some large clients are not cost-oriented. CNMC also suggested modifying the accounting methodology set by regulation to calculate the cost of the USP’s regulated services.