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Universal Postal Service Issues Indrek Ahermaa Estonian Competition Authority Communications Regulatory Division Adviser Baltic Roundtable 30th August 2013 Marciena 1 Universal service charge New US charge rates in force since 01.01.13 Ordinary letter 0,15 € => 0,14 € Registered and insured letter 1,21 € => 1,00 € All parcels 0 € => 0 € 4 333 425 € of burdensome costs for 2012 (Eesti Post) 4 239 168 € of universal postal service charge for 2012 (Eesti Post) 94 257 € of net compensation for 2012 (Eesti Post) The amount of universal postal service charge paid by Express Post is confidential but it is marginal compared to Eesti Post. Baltic Roundtable 30th August 2013 Marciena 2 Complaints Main problems in 2012 were: People discover that their package is damaged after they have left the post office. In this case no compensation can be made. Therefore any flaws should be checked at the post office. Postal item’s arrival notification is missing which causes item to be sent back to the sender. People send valuable items with ordinary letter but this service does not cover the costs of a loss or damage of an item. The overall number of complaints received in 2012 was 27 of which 25 concerned universal service. Baltic Roundtable 30th August 2013 Marciena 3 Access points of Eesti Post Year Post offices Letter boxes 2004 545 3737 2005 539 3725 2006 532 3132 2007 495 3123 2008 407 3116 2009 351 3100 2010 344 3100 2011 344 3100 2012 320 2772 2013 320 2772 Baltic Roundtable 30th August 2013 Marciena 4 Quality At least 90 per cent of items of correspondence forwarded as ordinary items which, for the provision of domestic postal services, are deposited with the universal postal service provider through a letterbox or post office before the latest prescribed collection time shall be delivered to the addressee during the working day after deposit. Eesti Post uses UNEX system to evalutate its quality. UNEX measures the transit time of crossborder items on the territory of Estonia. In addition, ECA sends its own test letters each year. Baltic Roundtable 30th August 2013 Marciena 5 Quality (results) Year UNEX ECA 2007 90,6 69,4 2008 91,5 - 2009 93,8 81,8 2010 92,7 91,8 2011 87,2 86,2 2012 88,8 91,5 Baltic Roundtable 30th August 2013 Marciena 6 Universal service licence US provider shall be designated for five years as a result of public competition. Current licence period of Eesti Post will end on 08.10.2014. This means that ECA has to carry out a public competition next summer. Baltic Roundtable 30th August 2013 Marciena 7 Maximum dimensions of letter Eesti Post informed ECA that in practice there is a problem with large letters, especially ordinary letters which should be delivered through post box. While cross-border letter dimensions are regulated by the UPU Letter Post Manual, domestic letter dimensions are not. Therefore ECA allowed Eesti Post to change its standard conditions of universal service in 2012. Baltic Roundtable 30th August 2013 Marciena 8 Thank you! Baltic Roundtable 30th August 2013 Marciena 9