10th Baltic Electronic Communications & Postal Services Regulators’ Meeting Latvia, 29 August 2013 Postal market supervision Kristina Masiulytė Acting head of Legislation division Communications Regulatory Authority (RRT) Recent Changes in Legal Environment. Regulatory Developments of Postal Service in Lithuania.

1. Implementation of Directive 2008/6/EC 2. Main changes in postal service regulation Annex 1. List of legal acts, transposing Directive 2008/6/EC Annex 2. List of other legal acts, implementing Postal Law 2 10th Baltic Electronic Communications & Postal Services Regulators’ Meeting Latvia, 29 August Outline of presentation

 Lithuania has implemented the 3rd Postal Directive through:  Primary legislation new wording of Postal Law of the Republic of Lithuania  Secondary legislation the Regulations on Compensation of Loss-making Universal Postal service the Rules of Calculating Losses of Universal Postal Service the Rules for Cost Accounting of Universal Postal Service the Quality Standards for Universal Postal Service 3 1. Implementation of Directive 2008/6/EC 10th Baltic Electronic Communications & Postal Services Regulators’ Meeting Latvia, 29 August 2013

. 2. Main changes in postal service regulation  New wording of Postal Law was adopted on 8 November, 2012 (came info force on 1 January, 2013)  Postal Law:  liberalizes the postal market completely (since 1 January, 2013)  abolishes the reserved postal services  specifies the definitions withdraw differentiation between postal and courier services all services, involving clearance, sorting, transport and distribution of postal items (without reference to distribution manner (recorded delivery, handing in to the indicated addressee, delivery into box for incoming postal deliveries)) are defined as “postal service” 4 10th Baltic Electronic Communications & Postal Services Regulators’ Meeting Latvia, 29 August 2013

. 2. Main changes in postal service regulation  specifies functions of the postal regulatory institutions Ministry of Transport and Communications – drafts and submits for approval to the Government the regulations on authorization of universal postal service (UPS) provider – etc. (Paragraph 2, Article 5 of Postal Law) RRT – approves tariff ceilings for UPS – drafts and submits for approval to the Government regulations on compensation of loss-making UPS, including the criteria of unreasonable financial burden – approves the rules of calculating losses of UPS – etc. (Paragraph 2, Article 6 of Postal Law) 5 10th Baltic Electronic Communications & Postal Services Regulators’ Meeting Latvia, 29 August 2013

6  sets the terms of accessing the postal network postal service (PS) provider, that operates the postal network, is obliged (Article 8 of Postal Law) – to negotiate for access to the postal network, when the other PS provider requires – to sign an agreement for the use of the postal network (including the system of postal codes, address data base, postal office boxes, etc.) – to warrant that an agreement concerning the usage of postal network would be composed in such a manner that ensures non-discriminatory, proportional and transparent conditions the user (PS provider) of postal network pays the fees, agreed by the parties, to the postal network operator for the usage of postal network. 2. Main changes in postal service regulation 10th Baltic Electronic Communications & Postal Services Regulators’ Meeting Latvia, 29 August 2013

7  alters the scope of UPS UPS does not include bulk mail – when UPS provider sends items of correspondence in volumes (i. e. when one sender presents the UPS provider 1000 or more items of correspondence, or 250 or more postal parcels in a month) – and has an agreement with the sender regarding the place of collection of the items, periods of delivery and other conditions UPS does not include PS that has added value – delivery and collection of postal items at the time and/or place preferred by the user – confirmation of delivery of a postal item, change of course of delivery – an ability to access the information about the location of the postal item at any time – other value added services 10th Baltic Electronic Communications & Postal Services Regulators’ Meeting Latvia, 29 August Main changes in postal service regulation

8 10th Baltic Electronic Communications & Postal Services Regulators’ Meeting Latvia, 29 August 2013  sets the terms and conditions of obligation to provide UPS the Government – obliges PS provider to provide UPS for a 7 year period – can extent the obligatory period up to 2 years – has to ensure that PS provider would fulfill it’s obligations uninterruptedly The person that could be obliged to provide UPS – has to be included in the list of PS providers – must have a postal network corresponding to the requirements set in characteristics for the postal network of the UPS provider AB Lietuvos paštas is obligated to provide the UPS until 31 December, Main changes in postal service regulation

9  sets the provisions for compensation of loss-making UPS if the provision of UPS constitutes an unreasonable financial burden for the UPS provider, the losses incurred while providing the services shall be compensated from the national budget according to the procedure set by the Government the Government approves the criteria of unreasonable financial burden the cases and procedures, including criteria of unreasonable financial burden, for compensation of loss-making UPS are set in the Regulations on Compensation of Loss-making Universal Postal service. 2. Main changes in postal service regulation 10th Baltic Electronic Communications & Postal Services Regulators’ Meeting Latvia, 29 August 2013

Annex 1. List of legal acts, transposing Directive 2008/6/EC 10  The Law on the Amendment of the Postal Law of the Republic of Lithuania (adopted by the Parliament of the Republic of Lithuania on 8 November, 2012 (came into force on 1 January 2013) / Official Gazette Valstybės žinios, 2012, No )  The Regulations on Compensation of Loss-making Universal Postal Service (approved by Resolution No 310 of 10 April 2013 of the Government of the Republic of Lithuania / Official Gazette Valstybės žinios, 2013, No )  The Rules of Calculating Losses of Universal Postal Service (approved by Order No 1V-608 of 15 April 2013 of the Director of RRT / Official Gazette Valstybės Žinios, 2013, No )  The Rules for Cost Accounting of Universal Postal Service (approved by Order No 1V-625 of 1 July 2005 of the Director of RRT / Official Gazette Valstybės Žinios, 2005, No ; resent amendments made by Order No 1V-55 of 11 January 2013 of the Director of RRT / Official Gazette Valstybės Žinios, 2013, No )  The Quality Standards for Universal Postal Service (approved by Order No of 28 February 2013 of the Minister of Transport and Communications / Official Gazette Valstybės Žinios, 2013, No ) 10th Baltic Electronic Communications & Postal Services Regulators’ Meeting Latvia, 29 August 2013

Annex 2. List of other legal acts, implementing Postal Law 11  The Regulations on Authorization of Universal Postal Service Provider (approved by Resolution No 255 of 27 March 2013 of the Government of the Republic of Lithuania / Official Gazette Valstybės žinios, 2013, No )  The Regulations on Provision of Universal Postal Service (approved by Order No of 30 April 2013 of the Minister of Transport and Communications / Official Gazette Valstybės Žinios, 2013, No )  The Characteristics for Postal Network of Universal Service Provider (approved by Order No 3-46 of 25 January 2013 of the Minister of Transport and Communications / Official Gazette Valstybės Žinios, 2013, No )  The Regulations on Tariff Ceilings of Universal Postal Service (approved by Order No 1V-8 of 3 January 2013 of the Director of RRT / Official Gazette Valstybės Žinios, 2013, No 4-152)  The Regulations on Provision of Postal Service (approved by Order No 1V-332 of 28 February 2013 of the Director of RRT / Official Gazette Valstybės Žinios, 2013, No ) 10th Baltic Electronic Communications & Postal Services Regulators’ Meeting Latvia, 29 August 2013

12 Kristina Masiulytė Acting Head of Legislation Division Legal Department Communications Regulatory Authority Algirdo str. 27A, LT Vilnius, Lithuania Tel ; 10th Baltic Electronic Communications & Postal Services Regulators’ Meeting Latvia, 29 August 2013