According to the provisions in force starting 2015, the net cost is deemed an unfair burden if it cumulatively meets two conditions regarding the level of the return of capital employed and the materiality threshold of the incomes from the provision of services within the scope of universal service.

The Authority’s analysis showed that the first criterion has been met, as the return on average capital employed on the universal service segment was below the weighted average cost of capital established by ANCOM for 2015 as 13.10%, whereas the second criterion has not been met, since the amount of the net cost did not exceed the materiality threshold of 3% of all the income registered by the designated universal service provider from the provision of services within the scope of universal service.

 

The net cost incurred in providing services within the scope of universal service is the difference of the costs incurred by the universal service provider in fulfilling its universal service obligations and the net cost incurred by this provider in the scenario that it conducted its activity exclusively on commercial bases, without universal service obligations.  

CNPR is the provider of services within the scope of universal service designated for the period 1 January 2013 - 31 December 2018 and is entitled to request the compensation of the net cost.

 

With a view to compensating the net cost, on 11 August  2016, ANCOM received CNPR’s net cost compensation request, accompanied by a statement on the expenditures, the income and the capital employed corresponding to the provision of services within the scope of universal service for the year 2015, as well as the Factual Findings Report on verifying the request for compensation of the net cost incurred in providing the services within the scope of universal service, prepared by an independent auditor.

In assessing the compensation request submitted by the universal service provider, ANCOM – supported by consultants from KPMG Advisory SRL and KPMG Romania SRL – analysed in detail the data and hypotheses used in preparing CNPR’s request, as well as the costing methodology and the actual calculation of the net cost and the additional information made available by CNPR. Where necessary - based on alternative information sources - data, hypotheses and actual calculations of certain parameters were adjusted so that the final amount resulting from this complex process reflect the amount of the net cost incurred for the provision of services within the scope of universal service in 2015. 

Following the analysis, ANCOM found that CNPR had not incurred a net cost for the year 2015 (the amount determined upon adjustments being negative).

 

Access to the universal postal service is a person’s right to benefit from the uninterrupted provision of certain postal services (the services within the scope of universal service), at a certain quality level, at any point on the territory of Romania, at affordable tariffs.

 

The draft decision regarding the request for the compensation of the net cost incurred in the provision of postal services within the scope of universal service in 2015 along the Explanatory Memorandum are available, in Romanian, here.  The interested persons are invited to send their suggestions and comments, by 20 March 2017, to the ANCOM headquarters (2 Delea Noua Street, Bucharest 3), or directly to the ANCOM Registry Office. Comments may also be sent by fax to +40.372.845.402 or by e-mail to consultare@ancom.org.ro.