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10
11
2015

Coming year brings changes in the prices of universal postal services

Based on an application from AS Eesti Post (Omniva), the Estonian Competition Authority proposed that prices of services be increased as of 1 January 2016, in order to reduce losses from universal postal services. The delivery cost of a standard domestic letter will increase from 55 cents to 65 cents.

Kaido Padar, Head of the Mail Division of AS Eesti Post, explained that the continuous decrease in the volume of postal services and the growing wage pressure among primary level staff are the reasons behind rising stamp prices.

“People’s desire and need to send letters decreases with each coming year, but the requirements to providing universal postal services and to the postal network have remained the same. The rise of stamp prices is unavoidable,” noted Padar.

According to Padar, the amount of letters has decreased at a steady pace, 10-15% annually. The prognosed number of standard letters with stamps sent within Estonia will have dropped to 2.4 million by the end of 2015.

A great deal of the planned rise in prices is due to the nearly 20% increase in the wages of almost 2,000 primary level workers during the last three years.

Even though the rise in prices would reduce losses from postal services, it has to be kept in mind that according to the prognosis, the universal postal service will still bear losses that exceed 2 million euros even with the planned price of stamps. 

The desired rise in prices will affect all universal postal services; the prices will go up 17% on average. The prices of both domestic and international letters and parcels weighing up to 20 kg will increase.

The rise in prices is scheduled to enter into force on 1 January 2016.

Companies are recommended to send letters though our e-service environment where a domestic letter costs 54-65 cents, but in addition to delivery, the price also includes the paper, the envelop and the printing process. E-service is open for sending both domestic and international letters.

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