Industry

Compensation of the net cost for the year 2013

Concerning the compensation of the net cost, CNPR sent ANCOM, on 1 July 2014, a compensation request accompanied by the statement on the costs, revenues and capital employed for the provison of services within the scope of universal service for the year 2013, and by the Factual Findings Report on the evaluation of the request for the compensation of the net cost for the provision of services within the scope of universal service.
For the purpose of evaluating this request, ANCOM conducted a detailed analysis of the information made available by CNPR, of the data and hypotheses used in elaborating the basic scenario and the alternative one. ANCOM verified in detail and validated the data and the hypotheses used by CNPR in the elaboration of the net cost compensation request, as well as the methodology used and the actual calculation of the net cost. Where necessary, ANCOM made – based on alternative information sources (end-user market surveys) – adjustments on the data, hypotheses and actual calculation of certain parameters, so that the final amount resulted following this complex process could reflect – as accurately as possible – the value of the net cost for the provision of services within the scope of universal service in 2013.  
In order to evaluate the extent to which the net cost is an unfair burden for CNPR, ANCOM analysed CNPR’s financial and competition status in the context of the Romanian postal services market, and the market conditions of alternative postal service providers. The analysis showed that, in spite of the full liberalisation of the postal services market, which removed – starting from 2013 – CNPR’s monopoly on the segment of reserved services, the universal service provider preserved its market share.
Moreover, in order to evaluate the extent to which the net cost is an unfair burden for CNPR, ANCOM calculated the level of the break-even point for the services within the scope of universal service and found that, in 2013, the universal service provider registered profit in the segment of services within the scope of universal service and respectively a gross profit margin which was much above the reasonable profit level, set by ANCOM at 13.10% for 2013. The Authority thus considers that the value of the net cost for the provision of postal services within the scope of universal service in 2013 does not represent an unfair burden for CNPR and therefore compensation is not necessary.
Additional information on the net cost for 2013 is available in the Explanatory Memorandum and Summary of comments to the draft decision, and in the Endorsement Report to ANCOM President’s Decision no. 1658/2014 on the request for the compensation of the net cost for the provision of postal services within the scope of universal service in 2013
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