21.09.2020 

ANCOM proposes the compensation of the net cost of providing services within the scope of universal service for 2018 with the amount of RON 6,285,244, following the compensation request received from the National Company “Romanian Post“ (CNPR). ANCOM’s proposal is based on a complex analysis that lead the Authority to assess that, for 2018, the net cost for the provision of services within the scope of universal service constitutes an unfair burden on the designated universal postal service provider – CNPR, and compensation is therefore justified.

ANCOM's proposal to compensate the net cost of providing services within the scope of universal postal service in 2018 comes as a result of restricting the scope of universal service, through the direct effect of the primary legislation – i.e. services processing large numbers of postal items, including services for the distribution of payslips on the payment of social protection rights are no longer within the scope of universal service. The legislative changes that occurred at the end of 2016 are also the ones that determined the compensation of the net cost for 2017, CNPR having been designated a universal service provider in the field of postal services from 1 January 2014 to 31 December 2019.

Conditions for the compensation of the net cost

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

This cost is an unfair burden and can be compensated only if two legal conditions are cumulatively met regarding the level of return on average capital employed recorded from the provision of services within the scope of universal service and the materiality threshold based on the revenues registered from the provision of services within the scope of universal service.

ANCOM’s analysis

ANCOM analysed in detail the data and assumptions used by CNPR in preparing the net cost compensation request, the methodology and the actual calculation of the net cost, as well as the additional information provided by CNPR. Where necessary, the Authority adjusted the data and the actual calculation of the net cost value. ANCOM found that the conditions required for establishing the unfair burden character of the net cost for the provision of universal service in 2018 are cumulatively met.

According to ANCOM's calculation, the value of the net cost registered by CNPR in 2018 from the universal service obligations, including intangible benefits, is RON 16,278,484. The maximum amount that can be compensated is RON 6,285,244. This is the value of the net cost that could be compensated until reaching the reasonable level of return on average capital employed registered from the provision of services within the scope of universal service.

Financing the net cost

The mechanism for the compensation of the net cost shall be established subsequently by Government decision, with one of the following financing sources:

a)    from state budget funds through the budget of the Ministry of Transports, Infrastructure and Communications, 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.

Universal postal service

Access to the universal postal service represents the right of any person to benefit from the permanent provision of postal services (services included in the scope of the universal service), of a certain quality, in any point within the Romanian territory, at affordable rates.

The public consultation

The draft decision regarding the compensation of the net cost of the provision of postal services within the scope of universal service in 2018 is available, in Romanian, here. The interested persons are invited to submit their comments and suggestions, by 21 October 2020, at the ANCOM headquarters (2 Delea Noua Street, Bucharest 3), using the Authority’s online registry, or at the Authority’s Regional Divisions. Comments can also be sent by fax at +40 372 845 402 or by e-mail at consultare@ancom.org.ro.