ANACOM determines price reduction of the universal postal service


On 2 October 2020, ANACOM approved the final decision on the compliance level of the universal postal service quality indicators, by CTT – Correios de Portugal (CTT), in 2019.

In 2019, CTT did not comply with 23 out of the 24 universal postal service quality indicators (IQS). In fact, CTT only complied with 1 out of the 22 indicators on delays in forwarding postal items and did not comply with the 2 indicators on waiting time at postal establishments. This is the fourth consecutive year that CTT has been unable to comply with the entirety of the universal postal service quality indicators.

Accordingly, ANACOM decided to activate the compensation mechanism laid down in the law, applicable in the case of non-compliance with the universal postal service quality indicators, consisting of a price reduction which should benefit all the users of that service. The application of these compensation mechanisms aimed at the users of the universal postal service is done by ANACOM in accordance with the Postal Law and the Concession Basis in the event of non-compliance with the established performance targets, without prejudice to the applicable penalties.

Thus, failure to comply with the performance targets implies the imposition of a deduction to the annual average price of the basket of items of correspondence, parcels, newspapers and periodical publications services that are provided by the universal service provider (PSU) in question. Specifically, ANACOM determined for CTT:

  • the application of the deduction of 1 percentage point to the weighted average variation of the prices of the basket of items of correspondence, parcels and editorial mail, permitted for the year of 2020, where this variation is henceforth Consumer Price Index (IPC) + Consumer Price Index Correction Factor (FCIPC) - 0.25% + Traffic Correction Factor (FCQ) - 1.0%, which is equal to 0.41%, where this deduction should benefit all the users of those services;
  • a 0.31% deduction to the current prices of regular bulk mail subject to special prices, in the domestic service.

CTT should begin applying these deductions by 1 November 2020, with full application required by 31 December 2020. The price changes must be notified to ANACOM before their starting date of application, accompanied by information that demonstrates compliance with this determination, as well as information on the form of disclosure of the price changes to the users.

On same this date, approval was also given to the report on the prior hearing of CTT to which this draft decisionhttps://www.anacom.pt/render.jsp?contentId=1563146 was subject, approved on 27 August 2020.


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