Industry

Compensation of the net cost of universal service obligations

The net cost of the universal service obligations is the difference between the net costs borne by CNPR as a result of fulfilling the universal service obligations (basic scenario) and the net cost of the same provider if it operated exclusively on commercial bases, without the universal service obligations (reference scenario).

For the period 2014 - 2019, ANCOM determined the calculation of the net cost by ANCOM President's Decision no. 1158/2013 on the designation of the universal service provider.

 

According to Article 14(2)1 of ANCOM President’s Decision no. 541/2013, with the subsequent amendments and completions, the net cost for the provision of postal services within the scope of universal service is an unfair burden if the following conditions are cumulatively met:

·        the level of return on average capital employed recorded from the provision of universal service as a result of fulfilling the operator’s legal obligations is below the weighted average cost of capital determined by ANCOM;

·        the value of the net cost determined by the Authority exceeds the materiality threshold of 3% of the revenues registered by the designated universal service provider following the provision of services within the scope of universal service. 

 

According to Article 22 of Government Emergency Ordinance no. 13/2013 on postal services, “if the regulatory authority decides that the provision of services within the scope of universal service results in a net cost which represents an unfair burden for the universal service providers, a mechanism for the compensation of this net cost shall be established by Government decision, with one of the following financing sources:

a)    from state budget funds through the budget of the Ministry of Communications and for Information Society, with due regard to the national and European legal framework in the field of state aid;

b)    through net cost sharing by postal service providers and/or users, with due regard to the national and European legal framework in the field of state aid.

 

For the period 2020-2024, the maximum amount that can be compensated to CNPR for the provision of services in the field of universal service is 0 (zero) lei/year, taking into account the financial proposal assumed by the National Company "Romanian Post" - S.A. by the designation request, the maximum estimated net cost for the provision of postal services in the sphere of universal service for the period January 1, 2020 - December 31, 2024 is 0 (zero) lei/year.