Malta Communications Authority (MCA) on Monday granted approval to MaltaPost plc for the revision of tariffs related to the Universal Service Obligation (USO).
This comes after a number of requests MaltaPost submitted to the MCA in recent years about the financial burden that the USO is having on its financials.
The USO is an initiative that aims to ensure that postal services are available to end-users in Malta at an “affordable” price. As the sole licenced Universal Service Provider of postal service in Malta, MaltaPost is tasked with collecting and delivering mail to every address in the country.
Over recent years, MaltaPost has faced a series of market challenges that have posed a threat to the sustainability of the Universal Service, with the company recording a pre-tax profit of €637,000 for the financial year ending 30th September 2022, a 72.9 per cent drop from the previous year’s €2.4 million. Different tariff revisions were approved more than a year ago, and while the situation improved, the company continued to deliver the services at a loss. For the six months ending 31st March 2023, MaltaPost registered a pre-tax profit of €700,000, yet still highlighted the “unfair financial burden” that the USO presents.
In Monday’s announcement, MaltaPost said that the various requests put forward to the MCA would allow it to “continue to fulfil the USO, a service of General Economic Interest, though without suffering financial losses”.
The company stated that the approved revision stands to “alleviate the negative impact” that the USO has on its financials, yet it did not say whether it sufficiently removes it. As a result, it stands to reason that the company is still providing such services at a loss.
Despite the revision, MaltaPost confirmed that Malta’s domestic standard letter tariffs remain “the lowest in Europe”.
One of the primary requests MaltaPost had submitted was to bring forward the tariffs for the next financial year and apply them to the current period, a proposal which was approved for domestic single-piece, domestic bulk, and outbound mail.
The rates for letters and newspapers post tariff will now be €0.38 for mail of 0-50 grams (previously €0.37), €0.58 for mail of 50-100 grams (previously €0.57), €0.78 for mail of 101-150 grams (previously €0.77) and €2.21 for mail of 151-200 grams (previously €2.20). Mail which is 201 grams or heavier up to two kilograms will be priced at €0.20 for each additional 50 grams.
Domestic bulk letter mail and newspaper post rates went up from €0.28 for mail weighing 0-50 grams to €0.36. The threshold for additional €0.20 charges per 50 grams heavier than the limit went down from 100 grams to 50 grams. Bulk mailers sending more than 2,000 mail items daily are charged a surcharge of €0.02.
Tariffs for outbound mail, specifically postcards, increased from €1.40 to €1.50. Fees for outbound letter mail will now start from €1.50 rather than €1.40, an increase that is relative according to different weight categories.
The company added that it is now looking forward to the forthcoming intervention by the MCA with regards to other issues falling within the scope of the USO. Discussions are also set to be held with the aim to “reduce the costs of delivering the USO and also to establish a fair and reasonable tariff adjustment mechanism covering all the regulated postal services”.
MaltaPost remains “determined on providing a reliable and affordable service to the community, fair and reasonable working conditions to its circa 700 staff members, and a just return to its 1,900 shareholders”.
MaltaPost Group comprises MaltaPost plc and its subsidiaries Tanseana Limited, PostaInsureAgency Limited, IVALife Insurance Limited, and Ciantar Brothers Limited. MaltaPost plc started operating in 1999 after it took over the postal services previously provided by Posta Limited.
