Proposed increase in Malta postage tariffs
On 10 March 2006, Maltapost plc submitted an application to the Malta Communications Authority (MCA) for a revision in its current tariff structure.
In its proposal Maltapost plc requested an increase of 2 cents for a local letter weighing up to 50g (also known as a standard letter), which at present is 7 cents. This meant also that each additional weight-category would increase by 2 cents.
The MCA is proposing a 1 cent increase in the 0-50g weight-step, while maintaining the additional weight-categories at their current levels, after it took into account various considerations.
The Authority conducted an in-depth analysis of the supporting three-year projections on volumes and costs submitted by Maltapost plc. These projections contained also the Company’s expected efficiency gains.
On the basis of this analysis, the MCA concluded that even after taking into account the Authority’s views on the underpinning assumptions, particularly those pertaining to the Company’s efficiency levels: without an adequate price increase, the business of domestic letters would continue to register losses. In deciding on the quantum of the required price increase, the Authority considered both the medium-term viability of the Company in providing the standard-letter service, and the need to ensure that postal services remain affordable.
The MCA invites comments on this Statement of Proposed Decision. The consultation period will run until 1200 CET on Monday 5 June 2006.
