Price of Europe-bound mail may increase yet again

The Malta Communications Authority is once again consulting on a revised price control mechanism and postal tariffs for Maltapost services.

According to the MCA, the consultation will "seek to minimise tariff increases" first announced last year on products described as having "a social bearing".

In September 2013, MaltaPost submitted an updated request for tariff revisions but the MCA said that only some of the tariffs proposed can be fully accepted, whilst others can only be partly approved. In the case of a number of services, the MCA is proposing not to accept MaltaPost's proposals.

As a result of this proposal, the local basic letter mail tariffs will remain stable "in the near to medium future", the MCA said.

The authority said the consultation seeks to balance the interest of end-users but also to ensure the continued financial sustainability of MaltaPost as the universal service provider.

"In light of emerging challenges facing the postal sector, certain price increases are deemed necessary to safeguard the provision of a quality postal service to end-users," the MCA said.

In November 2012, the MCA approved increases in postal tariffs which came into force between November 2012 and April 2013. The same decision had recognised that other tariff increases were likely to be required.

Since then, the MCA moved on to set a price control mechanism covering MaltaPost's financial years 2014 and 2015.

"Latest developments indicate that, similar to trends observed last year, expected decreases in profitability of international mail and declining volumes of domestic mail, are still ongoing. These developments point towards the need for further measures, in order to ensure successful provision of a high-quality universal postal service," the MCA said.

The authority said that MaltaPost has consistently exceeded its next-day delivery targets. The company provides postal services from more than 60 post and sub-post offices throughout Malta and Gozo and employs around 600 employees.

For further details please refer to the consultation document which is available online at www.mca.org.mt.  Interested parties are invited to participate in this consultation process and submit their views by no later than Thursday, 12th December 2013.