Latvian Regulator approves new postal tariffs

The Public Services Regulatory Commission’s council today approved new postal tariffs for the “Latvijas Pasts” (LP) company, as Inese Krumina, acting head of the company’s public relations department, told LETA.

The new tariffs will come into force January 1 next year.

Therefore, sending letters weighing up to 20 grams within Latvia will cost 22 santimes (15 santimes presently), the tariff for letters weighing 20-50 grams will be 28 santimes, and letters of 40-100 grams – 40 santimes.

Sending a letter of up to 20 grams to Lithuania or Estonia will cost 30 santimes (presently 15 santimes), to other European countries – 45 santimes (30 santimes now), and to other countries – 55 santimes (40 santimes presently).

“LP is pleased at the Public Services Regulatory Commission’s understanding of the need to hike rates, because if they were not raised the company would not be doing business but trying to maintain unprofitable services,” as LP director general Gints Skodovs told LETA.

LP has been making profit in all free market segments so far, and will continue making profit, Skodovs stressed.

“We are pleased that such income will not have to be sacrificed for covering losses from state-set services,” Skodovs said.

If the regulator turned down LP’s draft tariffs, the company would suffer a loss of LVL 4-5 million next year.

According to LP, prices and therefore costs have been growing in Latvia for quite a while, therefore postal tariffs, approved on January 1, 1999, had to be revised.

The law on postal services stipulates that LP’s monopoly will be reduced on January 1 next year, but the company will have a monopoly on sending letters weighing up to 50 grams. The postal services sector will be deregulated in 2009.