Keywords
universal service obligation, net cost of universal service obligation, third postal directive, net cost funding, indirect benefits, foregone revenues, avoidable costs, unfair financial burden, liberalization of the postal service market
Abstract
EU Member States are obliged to ensure that all EU citizens have access to universal postal services i.e. specifi c list of services, provided at least fi ve days a week, at affordable prices, with a uniform quality for all users. Member States implement this obligation by appointing a single postal operator to carry out all duties within the scope of the universal postal service obligation. The designated operator bears the costs associated with the fulfi llment of its obligations, which may however adversely affect its fi nancial results. The goal of the net cost calculation is to determine whether the fi nancial result achieved by the designated operator is adversely affected by the imposed obligations. The net cost is calculated as a comparison of the actual financial results of the designated operator, with a hypothetical situation where that operator was to be exempt from the universal service obligation and could freely modify the scope and quality of its service provision based on the economic profi t criterion only. In case of a positive net cost value, the designated operator is entitled to a payment made out of contributions from all postal operators providing services from within the scope of the universal service. However, due to the fact that most of the services within the scope of the universal service are provided by the designated operator itself, its own contribution to the compensation fund is signifi cantly greater than the sum of the contributions from other operators. As a result, the designated operator is forced to carry the financial burden resulting from the universal service obligation largely by itself. The designated operator can obtain additional funds from the budget only if the contributions made by all other operators participating in the compensation fund reach their maximum allowable ceiling. This situation may thus have a negative impact on competitive balance and the process of liberalization of the postal market.
Recommended Citation
Rozbiecki, M., & Rosiak, W. (2014). The net cost of the universal postal service and its financing. internetowy Kwartalnik Antymonopolowy i Regulacyjny (internet Quarterly on Antitrust and Regulation), 3(2), 23-35. Retrieved from https://press.wz.uw.edu.pl/ikar/vol3/iss2/2
First Page
23
Last Page
35
Page Count
12
Publisher
University of Warsaw
