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The translation of this document is outdated.
Translation validity: 01.01.2014.–08.12.2015.
Amendments not included: 03.12.2015.

Decision No.1/29 of the Board of the Public Utilities Commission
Adopted 11 October 2013

Methodology for the Calculation and Determination of the Net Costs of Fulfilment of Obligations of the Universal Postal Service

Issued pursuant to
Section 30, Paragraph two of the Postal Law
and Section 25, Paragraph one of
the Law On Regulators of Public Utilities

1. The methodology for the calculation and determination of the net costs of fulfilment of obligations of the universal postal service (hereinafter - the methodology) prescribes the procedures by which the provider of the universal postal service shall calculate the net costs of fulfilment of obligations of the universal postal service (hereinafter - the net costs).

2. The provider of the universal postal service shall calculate the costs that are related to the provision of the universal postal service according to the methodology for the calculation of tariffs of the universal postal service (hereinafter - the tariff methodology) laid down by the Public Utilities Commission (hereinafter - Regulator).

3. The provider of the universal postal service shall calculate the net costs for the calendar year, calculating separately the net costs of each postal service included in the composition of the universal postal service, according to the division of costs determined in the tariff methodology, in conformity with the following formula:

where

TI - sum of the net costs (EUR);

TIi - net costs for each particular postal service included in the composition of the universal postal service, which are indicated from TI1 to TI4;

TI1 - net costs for the collection, sorting, transportation and delivery of domestic and cross-border letter-post items (including registered and insured items), the weight of which does not exceed two kilograms (EUR);

TI2 - net costs for the collection, sorting, transportation and delivery of domestic and cross-border postal parcels (including insured items), the weight of which does not exceed 10 kilograms (EUR);

TI3 - net costs for the delivery of cross-border postal parcels (including insured), which are received from other European Union states and the weight of which does not exceed 20 kilograms (EUR);

TI4 - net costs of delivery services of subscribed periodicals (collecting, sorting, transportation and delivery) (EUR);

IzarUP - expenses arising from ensuring the postal service included in the particular universal postal service, if obligations of the universal postal service have been determined (EUR);

IearUP - revenue arising from ensuring the postal service included in the particular universal postal service, if obligations of the universal postal service have been determined (EUR);

IzbezUP - expenses arising from ensuring the postal service included in the particular universal postal service, if obligations of the universal postal service have not been determined (EUR);

IebezUP - revenue arising from ensuring the postal service included in the particular universal postal service, if obligations of the universal postal service have not been determined (EUR).

4. The sum of net costs does not exceed losses from the provision of the universal postal service, which have been calculated in accordance with the tariff methodology.

5. The provider of the universal postal service shall calculate the intangible benefit which is revenue from other services provided and not included in the universal postal service, if acquisition thereof is possible upon setting in of one of the following criteria:

5.1. activities of the following services: collection, sorting, transportation or delivery - take place concurrently with the universal postal service;

5.2. the sites where postal services are provided and the postal network access points are used for the provisions of such services.

6. The provider of the universal postal service shall accurately and clearly indicate information regarding turnover from other services provided and not included in the universal postal service, if they conform to that laid down in Paragraph 5 of this methodology.

7. The provider of the universal postal service shall calculate the intangible benefit according to the following formula:

PI = Ap * (1 - Ap )* pp,
Ak

where

PI - intangible benefit formed by non-material and market benefits - revenue of the provider of the universal postal service from other services provided and not included in the universal postal service, if acquisition of such revenue is possible only by providing the universal postal service (EUR);

Ap - turnover from other services provided, which has been calculated in accordance with Paragraph 5 of this methodology (EUR);

Ak - total turnover (EUR);

pp - interest percentage calculated as the proportion between the profit or losses of merchants after taxes and turnover of merchants, using the last available information published by the Central Statistical Bureau.

8. The provider of the universal postal service shall, until 1 September of the current year, prepare and submit a report to the Regulator on the net costs in the previous calendar year together with the results of an inspection of a sworn auditor laid down in Section 30, Paragraph three of the Postal Law.

9. If fulfilment of obligations of the universal postal service causes losses to the provider of the universal postal service, then the provider of the universal postal service shall calculate and indicate in the report on the net costs in the previous calendar year:

9.1. the intangible benefit calculated in accordance with the formula laid down in Paragraph 7 of this methodology;

9.2. the sum of compensation from the State budget, if such has been assigned.

10. The provider of the universal postal service shall account the net costs for collecting, sorting, transportation and delivery of domestic and cross-border postal parcels (including insured items), the weight of which does not exceed 10 kilograms, for the first time for year 2014.

11. The provider of the universal postal service shall account the net costs for delivery (collection, sorting, transportation and delivery) services of subscribed periodicals for the first time for year 2015.

12. Upon preparing a report on the net costs in the previous calendar year, the provider of the universal postal service shall indicate the justifying document in such currency in which they have been prepared in accordance with the accounting requirements and the Law On the Procedure for Introduction of Euro.

13. Decision No. 1/21 of the Public Utilities Commission of 24 November 2010, Methodology for the Calculation and Determination of the Net Costs of Fulfilment of Obligations of the Universal Postal Service (Latvijas Vēstnesis, 2010, No. 189), is repealed.

14. This Methodology shall come into force on 1 January 2014.

Informative Reference to European Union Directives

The methodology contains legal norms arising from:

1) Directive 97/67/EC of the European Parliament and of the Council of 15 December 1997 on common rules for the development of the internal market of Community postal services and the improvement of quality of service;

2) Directive 2002/39/EC of the European Parliament and of the Council of 10 June 2002 amending Directive 97/67/EC with regard to the further opening to competition of Community postal services;

3) Directive 2008/6/EC of the European Parliament and of the Council of 20 February 2008 amending Directive 97/67/EC with regard to the full accomplishment of the internal market of Community postal services.

Acting in the capacity of the Chairperson of the Public Utilities Commission -
Member of the Commission G. Zeltiņš

 


Translation © 2015 Valsts valodas centrs (State Language Centre)

 
Document information
Title: Universālā pasta pakalpojuma saistību izpildes tīro izmaksu aprēķināšanas un noteikšanas metodika Status:
In force
in force
Issuer: Public Utilities Commission Type: decision Document number: 1/29Adoption: 11.10.2013.Entry into force: 01.01.2014.Publication: Latvijas Vēstnesis, 204, 18.10.2013. OP number: 2013/204.8
Language:
LVEN
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