EC approves financing of Polish Post’s USO via compensation fund
The European Commission (EC) has concluded that the compensation granted by Poland to Poczta Polska (Polish Post) for delivering universal postal services from 2013 to 2015 is in line with EU state aid rules.
In a statement issued today (26 November), the EC added that, in particular, it has “approved the measure because the compensation paid to Polish Post is limited to the additional costs it faces to fulfil its public service mission (the so-called ‘universal service obligation’)”.
The EC also found that “the design of the mechanism to finance the compensation does not lead to a significant distortion of competition in the Polish postal market”.
Margrethe Vestager, the EC Commissioner in charge of competition policy, commented: “This is the first time the Commission has approved the use of a compensation fund mechanism to finance the provision of a universal postal service and I welcome that the Polish system approved today will benefit its postal customers in line with EU state aid rules.”
The Polish authorities notified the EC back in June 2014 of its plans for financing universal postal services carried out by Polish Post from 2013 until 2015. These include basic postal services delivered throughout the country at affordable prices and at certain minimum quality requirements.
Under EU state aid rules on public service compensation, adopted in 2011, companies can be compensated for the extra cost of providing a public service subject to certain criteria. This enables Member States to grant state aid for the provision of public services whilst at the same time making sure that companies entrusted with such services do not get overcompensated, which minimises distortions of competition and guarantees an efficient use of public resources.
In this case, the EC said that its assessment showed that the compensation to Polish Post is “based on a robust methodology, which ensures that it will not exceed the cost of the public service mission”.
To finance the compensation, the Polish authorities have set up a compensation fund. The possibility of establishing such a mechanism is provided for by the 3rd Postal Directive.
According to the EC statement issued today: “The fund will be financed by contributions of a maximum of 2% of the revenues earned by all postal providers in Poland, including Polish Post, on universal postal services as well as other postal services that are equivalent to universal services from a customer’s point of view.
“If necessary, this financing will be complemented by direct grants from the state budget.
“The Commission is satisfied that the level of contributions requested from the different operators to the Polish compensation fund for the period 2013-2015 was proportionate and non-discriminatory, in line with EU state aid rules.”
