In the scope of the postal sector's regulatory framework, ICP - Autoridade Nacional das Comunicações (ICP-ANACOM) defined the principles for the development of the cost accounting system (CAS) to be implemented by CTT - Correios de Portugal, S. A. (CTT), aiming for the determination of direct and indirect revenues and costs of each of the reserved and non-reserved services, as well as for the separation between costs associated to the several basic operations integrating the postal services (clearance, sorting, routing and delivery).
In this sense, all costs incurred and revenues obtained with the provision of postal services must be accounted for when determining the cost of products and calculating the respective margin, plus a reasonable remuneration margin. To this remuneration margin corresponds the cost of capital invested in the company.
To calculate its cost-of-capital rate, CTT use the Weighted Average Cost of Capital (WACC) methodology, using the Capital Asset Pricing Model (CAPM) to calculate the cost of equity. Parameters for calculating the referred rate, as well as the associated methodology, are supplied by CTT to ICP-ANACOM, in accordance with obligations concerning the regular reporting of CAS results.
In this context, CTT submitted the CAS results for 2011 by letter 052733, of 29.06.2012.
Without prejudice to conclusions drawn from the audit to these results, ICP-ANACOM notes that CTT have set a value of 21.97% for the cost-of-capital rate, basing their calculations on the following parameters:
|
Parameters |
CTT (2011) |
| Risk-free interest rate |
10.13% |
|
Gearing |
1.43% |
| Tax rate |
29.00% |
|
Beta |
0.89 |
| Risk premium |
6.28% |
| Debt premium |
0.50% |
|
Cost of equity |
15.72% |
| Pre-tax CMPC |
21.97% |
Source: CTT's CAS results (for 2011)
After analysing CTT's calculations of the cost-of-capital rate considered in the CAS results for 2011, ICP-ANACOM adopted a draft decision (DD) establishing for 2011 a cost-of-capital rate of 14.77%, providing CTT with a 15 working-day time limit to assess the issue, under articles 100 and 101 of the Administrative Procedure Code.
Having CTT submitted letter No 053601, on 20.09.2012, expressing their right of reply in relation to the DD adopted by this Authority, the respective prior hearing report was drawn up, integrating this decision.
