Universal postal service issues Vineta Porina Head of Universal Service Division Public Utilities Commission Marciena, 30 August 2013

Universal service provider In accordance with the Postal Law there is only one US provider in the territory of Latvia In accordance with the Postal Law “Latvijas Pasts” is going to be the US provider by 31st December, 2014 NRA will organize a public tender in 2014 and will choose an US provider for the next five years NRA should ensure equal treatment towards all tender participants

Universal service provider NRA should not give any of tender participant more favourable conditions If public tendering ends without any result, NRA should: 1) organize a repeated tender within two years period; 2) designate US obligations to the current US provider not longer than for two years

Universal service provider NRA defines USO which contain clearly outlined, non- discriminating, proportionate requirements. In order to stimulate effective provision of US the following conditions are should be met providing USO: 1) quality requirements regarding postal parcel clearance, transportation and delivery; 2) quality requirements regarding places of postal services provision as well as location and number of postal network access points;

Universal service provider 3) requirement to provide US to all users applying common tariff all over Latvia; 4) requirement to provide US in the economically efficient way.

The scope of universal service Universal service: clearance, transportation and delivery of domestic or international ordinary, registered and insured: Till letter-post items up to 2kg postal parcels up to 20kg delivery of subscribed periodicals (from ) From letter-post items up to 2kg domestic postal parcels up to 10kg international postal parcels from EU countries up to 20kg delivery of subscribed periodicals (from )

The net cost of USO The NRA has developed the methodology for calculation of the net cost of universal postal service In accordance with the amendments to the Postal Law the NRA has to amend the methodology for calculation of the net cost of USO The amendments to the Postal Law provide the obligation to amend the methodology concerning issues covering: 1) the scope of USO;

The net cost of USO 2) defining of criteria to be used for determining which revenues got from other services provided by the US provider shall be included in the calculation of intangible benefits The draft of methodology foresees: An US provider shall calculate intangible benefits which include revenues from other services not included in US if getting of them possible under one of the following conditions: 1) this service is collected, sorted, transported or delivered together with US;

The net cost of USO 2) these services are provided at places used for provision of postal services and at postal service access points

Thank you for your attention!