Domestic Single-Piece and Bulk Mail Services - MaltaPost Proposal

The postal Domestic Single-Piece and Domestic Bulk Mail services are part of the Universal Service (hereafter ‘US’) offered by MaltaPost plc to its customers.

MaltaPost maintains an Activity Based Cost-Accounting (“ABC”) system and prepares regulatory separated accounts which are audited on an annual basis.  MaltaPost has written to the Malta Communications Authority (MCA) requesting a revision of the local single-piece and local bulk mail tariffs, as it calculates that these services have been loss-making for a number of years, the costs are constantly increasing, and these factors are weighing heavily on the financial performance and sustainability of the US.  In addition MaltaPost submitted that without any price adjustments, the US profitability would continue to deteriorate, given the ongoing challenges such as internal and external cost increases and other operational challenges.

The MCA is reviewing MaltaPost’s request and its analysis includes cost-accounting reviews, as well as assessing the compatibility of the proposed changes with ensuring the availability of an affordable universal service.  At this stage the MCA has some concerns and is not in agreement with certain aspects of MaltaPost’s proposals. While the Authority furthers its analysis, it is publishing MaltaPost’s proposals and offering the opportunity for stakeholders to provide feedback.

In its submissions MaltaPost requested the lowest of its proposed increases in the domestic bulk mail tariffs.  The largest increase proposed by MaltaPost is for single-piece mail above 150g which in terms of mail articles represent less than 1% of total domestic single-piece and bulk mail flows.

All responses should be submitted to the Authority, in writing by not later than 12.00hrs on 15 May 2019.


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