Please wait!
20.07.2022
In order to ensure the continuity of the provision of the universal postal service (UPS) throughout Latvia and to be able to provide the exchange of UPS items with foreign countries, taking into account the high overall inflation both at the Latvian and global level, but especially the substantial increase in energy resource tariffs, which significantly increases transportation costs, Latvijas Pasts has drawn up and submitted new UPS draft tariffs to the Public Utilities Commission (PUC). The expected date of entry into force of the tariffs is the 1st of January 2023.
The high overall inflation figures, both in Latvia and internationally, and especially a sharp rise in energy resource tariffs, which adds to the cost of both cross-border and local transportation, pose a significant threat to the possibilities of Latvijas Pasts to meet its UPS commitments in 2023 in full if the current UPS tariffs remain in force.
In Q1 this year, Latvijas Pasts observed an increase in fuel costs by approximately 32% compared to the same period in 2021. The costs of transporting international items have also increased, and the fees of other countries’ postal establishments, which they apply to Latvijas Pasts for the delivery of postal items from Latvian inhabitants to addressees in their countries, grow by 10%–15% annually. When developing new UPS draft tariffs as of the 1st of January 2023, Latvijas Pasts also took into account the announcements made in the public space about raising the minimum monthly wage starting from 2023, which would create a significant additional cost component for the company.
At the same time, Latvijas Pasts continues to implement efficiency improvement and optimisation measures to reduce costs, but it is expected that without tariff changes they will not be able to fully compensate for the increase in costs: these measures include the creation of new automated sorting solutions, regular monitoring of requests for postal services, changes in the operating model in unprofitable post offices and provision of services in the most efficient way according to the actual demand, optimisation and revision of delivery routes, expansion of the parcel locker network and growing digitisation of services, for example by promoting the registration of postal items via the self-service website Manspasts.lv, which reduces the costs for both the sender and Latvijas Pasts.
Along with the submission of a new tariff model, Latvijas Pasts has initiated some proposals to reduce the dynamics of tariff changes. As a result, the average increase in tariffs from 2023 is planned to be only 13% for letter-post items, such as letters, postcards and small packets, and 7% for parcels, which can be considered very minor changes in relation to the increase observed in all types of costs. The classification of certain groups of countries into certain tariff groups has been revised: for example, the tariffs for items to Northern Ireland will decrease. The discount for items processed on the self-service website Manspasts.lv will also become bigger – it will increase to € 0.55 instead of the previous € 0.49.
The universal postal service is the minimum aggregate of postal services of a specific quality available for a unified tariff to all users in Latvia regardless of their geographical location. The UPS provider is obliged to ensure the delivery of domestic and cross-border letter-post items and postal parcels as well as the delivery of subscription press. Service tariffs in the postal sector are approved by PUC.
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 about 3,000 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
E-mail: pr@pasts.lv; gundega.varpa@pasts.lv
Latvijas Pasts social media profiles:
Twitter; Facebook; Instagram; Linkedin