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25
06
2019

Eesti Post submitted an offer for providing universal postal service

Eesti Post submitted its offer to the procurement organised by the Estonian Competition Authority for finding a universal postal service (UPT) provider.
 
“Provision of a universal postal service is the main task of Eesti Post and regardless of the decline in use, the service is still relevant for Estonians. We want to continue providing this service to reach all Estonian people, and for this purpose we are participating in the Estonian Competition Authority’s procurement,” the Chairman of the Board of Eesti Post, Ansi Arumeel, said.
 
Last week, the council of Eesti Post confirmed the management board’s proposal to participate in the UPT competition and agreed with the conditions stated in the company competition notice. The prerequisites of the offer are that the pricing of the UPT service considers cost orientation and the need to cover the costs related with the UPT network operating, and ensures the reasonable margin prescribed in regulations.
 
“Every company, be it a state-owned or a private company, has obligations, in addition to its owner, to its employees and clients as well. Eesti Post must be able to offer its employees competitive and worthy remuneration and its clients quality service. For universal postal service this means that the state as the body ordering the service must ensure cost-oriented prices and compensation for unreasonable loss, as the latter is also provided in the Postal Act,” said Bo Henriksson, the chairman of the Eesti Post council.
 
The universal postal service and the accompanying periodicals services caused a loss in the amount of 4.9 million euros in 2018 and over the coming five years, the total loss will reach an estimated 40 million euros.
 
Until now, Eesti Post has covered the larger part of the UPT and periodicals loss from the profit of other business services, but according to the company management and council, this is not a sustainable solution.
 
“The state as the owner provides that in addition to providing the universal postal service pursuant to public interest, Eesti Post must operate as a profitable company. In addition, the minister has also expressed support to the company’s wish to raise the employees’ salaries and service quality. To fulfil these goals, the body that orders must also change the pricing of the offering of universal postal service,” Henriksson added.
 
Universal postal service is made up from international postal services: forwarding letter mail as letters, registered mail and insured letters with weight up to two kilogrammes and forwarding parcels as registered and insured mail with weight up to 20 kilogrammes. The geographic region for the universal postal service is all of Estonia and the activity license is issued for five years (09 October 2019 until 08 October 2024).
 

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