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02.12.2019
The Public Utilities Commission has approved the draft amendments in the tariff structure of the universal postal service submitted by Latvijas Pasts, which, in accordance with modern requirements, will improve the provision of postal services and simplify tariffs. The new approach provides for a transition from the current 240 different basic tariffs to a simplified system where only three factors would affect the tariff of any item to be sent: the item weight, whether the item is ordinary, registered or insured, and the geographical zone to which the item must be delivered. Moreover, if the customer processes the item himself or herself through the self-service website of Latvijas Pasts https://new.manspasts.lv/, the tariffs for sending registered and insured items will be lower. The new tariff structure will enter into force on the 1st of January 2020.
The tariffs of the universal postal service and their structure have not been changed in Latvia for more than 10 years; the current types of postal services are outdated, complicated and no longer compliant with the domestic or global market situation and the modern consumption habits. Therefore, Latvijas Pasts has developed and proposed for approval a new, modern tariff structure model that will improve the provision of the universal postal service and make the tariffs simpler. The Public Utilities Commission (PUC) has approved the draft developed by Latvijas Pasts and, according to PUC’s decision, the new service structure and tariffs will come into effect on the 1st of January 2020.
“In recent years Latvijas Pasts has invested a lot of work and other resources in modernising services, improving quality and customer care and implementing various digital solutions. We are currently experiencing a historic moment, as the structure of tariffs for the universal postal service is being modernised also in Latvia after more than a decade, during which the entire global postal sector and the needs of customers have changed dramatically. Our customers have long been waiting for simple and understandable types of postal items and convenient tariffs. We are pleased that we will be able to provide them from the first days of the next year,” Mārcis Vilcāns, Chairman of the Board of Latvijas Pasts, points out.
The amendments of the universal postal service tariffs will only refer to the regulated market segment, except the tariffs of delivery of subscribed press. The new system foresees a move away from the division of items into two classes, A and economy B, providing only the priority class A deliveries in the future. This will improve both the quality of the delivery service and the speed of attending to customers at the postal service locations, as the processing of services will become simpler.
The universal postal service structure approved by PUC provides for the classification of new items, moving away from the usual division into letters, postcards, items in wrapper, small packets and parcels. Instead, customers are offered clear terminology, dividing all items into two large groups: letter-post items, which will include the current postcards, letters, small packets and items in wrapper, and parcels.
The forwarding tariffs will be based on three factors: the item weight, whether the item is ordinary, registered or insured, and the geographical zone to which the item must be delivered. The division into zones is affected by both the demand for sending items to a specific country – the higher it is, the lower the cost price of sending items – as well as other costs, including item delivery rates within the country of destination.
For a number of items the new tariffs will be lower than before: for example, according to the new tariffs, the cost of sending a registered letter-post item weighing up to 50 g within Latvia, previously classified as a small packet, will be 23% lower than before – only EUR 1.89 instead of EUR 2.46. It will also be cheaper to send an ordinary parcel weighing 5 kg and more within Latvia – EUR 4.74 instead of EUR 5.73, which is a decrease of 17%. The average domestic tariffs for sending items will grow by 18%.
Some tariffs for sending items abroad will also be reduced. For example, the cost of sending a registered letter-post item (previously classified as a small packet) weighing over 1 kg to Estonia will cost 23% less from the 1st of January 2020, while sending a 3 kg parcel to Belgium will be cheaper by 19%. The average increase in cross-border item tariffs will be 39% for letter-post items and 6% for parcels.
The new universal postal service tariffs provide for a discount on registered and insured postal items if the customer processes them himself or herself through the self-service website of Latvijas Pasts https://new.manspasts.lv/. Doing so will reduce the registration and insurance charges by 29%.
In the course of developing the new system of the tariffs of the universal postal service, the factors like decrease of population, as well as digitisation and accessibility of the Internet, which is related to a decrease of the volume of traditional letters and, consequently, higher delivery costs, have been taken into account. Also the increase of various costs has an equal impact on the provision of services, in particular, during the last eleven years since approval of the currently valid tariffs of the universal postal service in 2008, both fuel and goods and services have become more expensive, and also the labour costs have increased.
The current tariffs of Latvijas Pasts have become quite outdated also within the global context because Latvia and Romania are the only countries in the European Union where the tariffs have not been revised during the last ten years. For the sake of comparison – considering the overall inflation, during these years the actual prices of postal services have increased by 44% in Estonia, by 88% in Finland and by 50% in Sweden. This means that Latvijas Pasts has been paying more for the same service to postal establishments of other countries than it has received from them for equal services in the territory of Latvia.
In recent years Latvijas Pasts has been actively pursuing service and customer care improvement measures, strengthening the customers’ trust and the company’s long-term competitiveness.
More detailed answers to the questions about the new types and tariffs of the universal postal service items can be found in the section Tariff changes of the website of Latvijas Pasts www.pasts.lv.
About SJSC Latvijas Pasts
Latvijas Pasts ensures the widest availability of postal services throughout Latvia by maintaining more than 600 post offices. The primary function of the company is provision of the universal postal service; Latvijas Pasts also provides commercial transport, express mail, payment, press subscription, retail and philatelic services. Latvijas Pasts is a wholly State-owned company with over 3,500 employees. The quality measurements of Latvijas Pasts domestic mail deliveries are regularly conducted by Kantar TNS, one of the leading market, social and media research agencies in Latvia. In turn, the quality measurements of the cross-border deliveries are provided within the framework of the International Post Corporation through the intermediary of the research companies Kantar TNS, Ipsos and Quotas.
Additional information:
Gundega Vārpa | Head of External Communications
Phone: +371 67608505
E-mail: pr@pasts.lv; gundega.varpa@pasts.lv
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