Press Releases

ANCOM Assesses the CNPR Provision of Universal Postal Service in 2013

3.11.2014

 
After analysing the compensation request submitted by the National Company Poșta Română (CNPR), which is the designated universal service provider in the postal field in Romania, ANCOM verified and adjusted the value of the net cost of the provision of services within the scope of universal service calculated in 2013 by CNPR. Following the analysis, the Authority found that the sevices within the scope of universal service brought profit to the company and the net cost incurred by their provision does not represent an unfair burden for CNPR, therefore ANCOM considers that the net cost compensation is not necessary.
The net cost of the universal service obligations is the difference between the costs borne by CNPR as a result of fulfilling the universal service obligations (basic scenario) and the net cost of the same provider in the case it would operate exclusively on commercial bases, without the universal service obligations (reference scenario).
In view of the net cost compensation, CNPR submitted a compensation request to ANCOM on 1 July 2014. Alongside this request, CNPR submitted also a statement on the costs, revenues and capital engaged for the provision of universal service in 2013, as well as a Report of factual findings on the verification of the request for the compensation of the net cost of the universal service provision, drawn up by Deloitte Audit S.R.L.
In order to assess this request, ANCOM, with the support of the consultants Ernst&Young S.R.L. and Ernst&Young s.r.o., undertook a thorough analysis of the information made available by CNPR, and of the data and hypotheses used for the elaboration of the basic scenario and of the reference scenario. The data and hypotheses used by CNPR in the elaboration of the compensation request, as well as the methodology and the calculation of the net cost have been verified in every detail and validated. Where required, based on alternative sources of information, adjustments of data, hypotheses and calculation of parameters have been made so as to make sure that the final amount resulted following this complex process reflects with greatest accuracy the value of the net cost of the provision of universal service in 2013.  
To assess the extent to which the net cost represents an unfair burden for CNPR, the Authority analysed the financial and competition situation of CNPR in the context of the Romanian postal market, as well as the market conditions of the alternative postal providers. The analysis showed that, although the full liberalisation of the postal market led to the removal of the CNPR monopol in the segment of the reserved services at the begining of 2013, the universal service provider’s market share remained steady.
As well, the Authority calculated the profitability level of CNPR and assessed that the universal service provider registered profit in 2013 in the universal service segment and respectively a gross profit margin well above the reasonable profit level, set by ANCOM at 13.10% for 2013. The Authority thus considers that the value of the net cost does not represent an unfair burden for the universal service provider.  
Access to the universal service is the right of every person to benefit from the uninterrupted provision of basic postal services, at affordable prices for all users and at a certain quality level, in any location on the territory of Romania. The designated universal service provider has the obligation to provide services at affordable tariffs on the entire territory for which it was designated, including in the areas characterised by exceptional geographic conditions or with low density population, where the low correspondence volume may lead to non-profitable activity.
The draft decision on the compensation of the net cost of the provision of services within the scope of universal service in 2013 is available for consultation here. The interested persons are invited to send their comments and suggestions, by 24.11.2014, to the ANCOM headquarters in 2 Delea Noua Street, Bucharest 3, or directly to the ANCOM Registry Office or to the Authority’s regional divisions. Comments may also be sent by fax to +40 372 845 402 or by e-mail to consultare@ancom.org.ro.
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