The proposed approach seeks to minimise tariff increases that had been projected last year, which relate to certain products that have a social bearing. As a result of this proposal, the local basic letter mail tariffs will remain stable, in the near to medium future. The consultation also seeks to balance the interest of end-users whilst ensuring the continued financial sustainability of MaltaPost as the universal service provider. In light of emerging challenges facing the postal sector, certain price increases are deemed necessary to safeguard the provision of a quality postal service to end-users.
In November 2012, the MCA had published a decision notice entitled "Price Control Mechanism for MaltaPost plc and Revised Postal Tariffs". The decision issued last year had approved increases in postal tariffs, which came into force between November 2012 and April 2013. Furthermore, the same decision had recognised that other tariff increases were likely to be required.
Since then, the Authority moved on to set a price control mechanism covering MaltaPost’s financial years 2014 and 2015. Latest developments indicate that, similar to trends observed last year, expected decreases in profitability of international mail and declining volumes of domestic mail, are still ongoing. These developments point towards the need for further measures, in order to ensure successful provision of a high-quality universal postal service. In recent years, MaltaPost has consistently exceeded its next-day delivery targets. It currently provides postal services from more than 60 Post Offices and Sub-Post Offices throughout Malta and Gozo and employs around 600 employees.
In September 2013, MaltaPost submitted an updated request for tariff revisions seeking to balance its social role with the need to ensure financial sustainability. The MCA tested whether MaltaPost's requests fit within its price control objectives. As detailed in the consultation document, the Authority's assessment indicates that some of the tariffs proposed by MaltaPost can be fully accepted whilst others can only be partly approved. In the case of a number of services, the MCA is proposing not to accept MaltaPost's proposals.
For further details please refer to the consultation document which is available hereunder.
Interested parties are invited to participate in this consultation process and submit their views by no later than Thursday, 12th December 2013.