The independent regulatory authority for Postal and Electronic communications (ARCEP) made public its decision on price capping of postal tariffs in relation to the universal postal service: during the 2006-2008 period, tariffs for services in relation to the universal service could not be increased by more than a yearly average of 2.1%.
La Poste assesses this balanced decision which guarantees affordable prices in the context of modernisation and quality improvements, all within performance demands.
This decision, the result of constructive discussions and an in depth study between La Poste and ARCEP, is a first since the introduction on the 1st November 2005 of an independent regulatory authority in the postal sector in the extension of the law of 20th May 2005.
Furthermore, the Minister responsible for La Poste, the Minister for Industry, introduced regulation for postal services, but no longer defines the tariffs (with the exception of newspaper transportation). The reserved service tariffs are approved by the regulator.
Currently, following the law in 1991, each pricing change is made subject to authorisation from the relevant minister. Also, La Poste was subject to long term restrictions on its tariffs defined in the context of an agreement made with the state. This set out that for the period 1998-2007 the Universal Service tariffs would not increase more than an average of 2.5% per year.
Therefore, going forward, in conjunction with ARCEP and in line with the price cap made public today, La Poste may be lead to propose tariff changes.
Furthermore, ARCEP gave authorisation for the first time to another postal operator, signalling the opening of the French postal market to competition.
The reserved sector and the universal service
La Poste as a universal service operator has a reserved sector which, since 1st January 2006 and the application of the European directives of 1997 and 2002 adapted from the law of 20th May 2005, relates to mail under 50g (and up to two and a half times the base tariff of 0.53 euros). From now on La Post is making 46% of its 11 million euro postal turnover from markets open to competition. The parcel market is completely open to competition.
The reserved sector serves to finance universal service operations which fall to La Poste: collection and distribution of post 6 days a week throughout France, post up to 2 Kg sent within France or abroad, registered and declared value post, and parcels of less than 2 Kg sold at post office counters.
It should be noted that from now on La Poste is making 64.5 % of its 19 million euro postal turnover from markets open to competition.
La Poste Press group contacts:
Written press:
Vincent PARRA
Tel: 01 55 44 22 38
vincent.parra@laposte.fr
Audiovisual press:
Jacques Gourier
Tel: 01 55 44 22 43
jacques.gourier@laposte.fr
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