In accordance with Appendix 2 of the “Quality of service parameters and performance objectives associated with the provision of universal postal service”, as established by ANACOM in its decision of 30.12.2014, which, as referred to above, the following apply in 2018:
a) where any QSI falls below the minimum values, the deduction corresponds to the product of the relative importance (RI) of the QSI and the expected maximum deduction (1 percentage point deduction from the maximum price variation of the basket consisting of mail, editorial mail and parcel services that form part of the universal service);
b) since the OI is over 100, the deduction associated with the OI is not applicable (Appendix 2, section 3.1), with only the deduction associated with non-compliance with the minimum values of QSI2 and QSI7 applying.
Thus, the total deduction to be applied corresponds to the product of the sum of the RI of QSI2 (6%) and QSI7 (2.5%) and the maximum deduction (1%), i.e.: (6% + 2.5%) × 0.01 = 0.085% (or, alternatively, equivalent to: 6% × 0.01 + 2.5% × 0.01 = 0.085%).
However, in accordance with the rules applicable from 2019 inclusive, as set out in the said Decision of 12.07.2018, it is foreseen, in particular, that the figures for the cross-border intra-community mail quality of service indicator will not be considered for the purpose of applying the compensation mechanism. As explained in that ANACOM decision, “… bearing in mind that the values [of the transit time for cross-border mail] achieved depend not only on CTT but also on other service providers in the other countries, the primary objective of the indicators for cross-border intra-community mail becomes monitoring quality levels in the sending of postal items originating or having destination in Portugal, no longer relevant for the purposes of applying the user compensation mechanism…”.
Despite the fact that the results of the QSI in 2018 are governed by the provisions of ANACOM’s deliberations of 30.12.2014 and 13.03.2015, as follows from the decision of 12.07.2018 and as already explained above, it should be noted that the grounds remain valid for the decision, effective from 01 January 2019, to disregard the figures relating to cross-border intra-community mail quality of service indicators in the decision to apply the compensation mechanism, regardless of the reference period for the quality of service assessment of the universal postal service provided by the concessionaire.
In this context, and considering that , in the application of the compensation mechanism for universal service users resulting from non-compliance with the performance targets associated with the provision of the universal service, ANACOM is subject to the set of principles laid down in Article 47 of the Postal Act, in particular the principle of proportionality, it is understood that the 2018 QSI should be subject to the rule established in the decision of 12.07.2018 (applicable from 01.01.2019), which provides that transit times in cross-border intra-community mail (QSI7 and QSI8) should not be relevant for the purposes of applying the user compensation mechanism.
It follows that the total deduction to be applied corresponds to the product of the RI of QSI2 (6%) and the maximum deduction (1%), i.e.: 6% × 0.01 = 0.06%.
By application of the criteria for pricing the postal services that comprise the universal service in the 2018-2020 period (pricing criteria), defined by ANACOM decision of 12.07.2018 and complemented by decision of 05.11.2018, under Article 14 (3) of the Postal Act, the weighted average variation in the prices of the basket of letter, parcel and editorial mail services may not exceed, in 2019, the CPI + CPIAF - 0.25% + TCF, in nominal average terms, which corresponds to a maximum variation of 1.15%1.
The application of this 0.06% deduction, due to non-compliance with the minimum QSI2 value in 2018, implies that the weighted average variation in the prices of the basket of letter, parcel and editorial mail services cannot be higher, in 2019, than CPI + CPIAF - 0.25% + TCF - 0.06%, in nominal average terms, i.e. it cannot be higher than 1.09% (= 1.15% - 0.06%).
The weighted average variation in the prices of that basket of services implemented in the meantime by CTT in 2019, was 1.15%2, which means that, in order to comply with the maximum price variation allowed after applying the deduction for non-compliance with minimum QSI values in 2018, during the course of 2019, CTT should implement a reduction in current prices.
1 Whereas: a) CPI: in accordance with Article 5 (1) (a) of the pricing criteria, the CPI (for 2019) is the inflation forecast by the Government (for 2019) and, as such, entered in the National Budget Memorandum (2019). This value is 1.3%. b) CPIAF: taking into account Article 5 (1) (b) of the pricing criteria, the CPIAF corresponds to the difference between the amount of inflation projected in the 2019 National Budget Memorandum for 2018, which is 1.3%, and the amount of inflation that was forecast for 2018 in the 2018 National Budget Memorandum, which was 1.4%, with this difference limited to a maximum of 2.5%. Therefore, and given the values mentioned above, the CPIAF is -0.1% [= 1.3% - 1.4%]. c) TCF: the traffic correction factor is a correction factor for the maximum price variation which takes into account part of the deviations found between the change in traffic forecast for 2018 when defining the pricing criteria (which was expected to be -6.43%) and the change in traffic observed (which is -6.95%, according to the calculation formula provided for in Article 5 (1) (c) of the pricing criteria). This aforementioned deviation is -0.52% [= -6.95% - (-6.43%)], as a result of which the TCF is 0.20% [= -0.375 * (-0.52%)], the weighted average variation in the prices of the basket of letter, parcel and editorial mail services may not exceed 1.15% in 2019 [= 1.3% - 0.1% - 0.25% + 0.2%].
2 See ANACOM decision of 22.05.2019 (Non-opposition to the pricing proposal for 2019 in the scope of the universal postal servicehttps://www.anacom.pt/render.jsp?contentId=1473282).
