09.09
2019

Announcement of Competition Authority about issue of UPS authorisation and comments of Eesti Post

Announcement of Competition Authority: Competition Authority issued AS Eesti Post the authorisation for provision of universal postal services in the next five years
On 9 September 2019 the Competition Authority decided to issue the authorisation for provision of universal postal services in the next five years to AS Eesti Post.
Pursuant to the authorisation, the minimum number of the Omniva post offices that provide postal services will remain 215. Omniva has 267 post offices throughout Estonia at present. The opening or closure of post offices will remain up to the company to decide, but there may not be fewer post offices than the established minimum.
In addition to the number of post offices, the authorisation sets the minimum number of mailboxes at 1453. The current minimum number of mailboxes throughout Estonia is 1845. The average number of letters left in a mailbox per month was taken into account when the minimum number of mailboxes was reduced.
There must be at least two mailboxes in each town and municipality, the average distance of a mailbox may not be more than 3 kilometres from a postal service user located or living in a town or more than 5 kilometres from a postal service user located or living in a municipality.

Comments of Eesti Post: The authorisation is valid for five years, so it’s too early to speak about all possible changes yet
The universal postal service authorisation issued by the Competition Authority and the requirements of the Postal Act stipulate the postal service commissioned by the state. The universal postal service must be provided to all residents throughout the territory of Estonia and for an affordable fee.
According to the authorisation effective from 2019-2024, the universal postal service must be provided at 215 post offices five days a week for two hours every day. In rural areas where the post office is further away than five kilometres, the service is provided by the mail carrier at the client’s location or place of residence. According to the authorisation, access points also include 1453 mailboxes where people can post letters.
The universal postal service provider also has the right to the service at more post offices and during longer opening hours, but this will not be compensated on the basis of the Postal Act.
Eesti Post has 267 post offices (the required minimum on the basis of the present authorisation is 245) and the majority of the post offices are open more often and/or longer than two hours a day five days a week. In rural areas where the post office is further away than five kilometres, the service is provided by the mail carrier at the client’s location or place of residence.
The provision of postal services is reorganised according to the use of the services by people and it is negotiated with the local government. This will continue in the same manner after the new authorisation enters into force. It is still too early to speak about specific changes.
The universal postal service and the accompanying periodicals services brought a loss in the amount of 4.9 million euros to Eesti Post in 2018.

Requirements of the authorisation effective from 2019-2024:

  • 215 post offices, opened 5 days a week, open for 2 hours every day;
  • in rural areas where the post office is further away than five kilometres, the service is provided by the mail carrier at the user’s location or place of residence;
  • 1453 mailboxes;
  • payout of pensions and support via the postal network;
  • provision of money transfer services via the postal network;
  • forwarding of periodicals throughout Estonia once a day six days a week.

The authorisation will enter into force on 9 October 2019.

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