Making the Parcel Regulation work. 17th Königswinter Postal Seminar 5-7 February

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1 Making the Parcel Regulation work 17th Königswinter Postal Seminar 5-7 February

2 A lot going on. 2

3 Not just a parcel More A journey 3

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12 AT DE DK FI FR IE LU NL SE CY EL ES IT MT PT BG HR HU LT LV PL RO SI SK CH FYROM IS Increase in parcel volumes Parcel volumes - percentage average annual change 120.0% 100.0% 80.0% % 40.0% % 0.0% % -40.0% Average % Western Southern Eastern Non-EU Western Southern Eastern Non-EU Average

13 ERGP Mid Term Strategy ERGP Strategic Pillars Pillar 1 : Promoting sustainable provision of universal postal service Pillar 2: Promoting a competitive EU postal single market Pillar 3: Empowering and protecting end-users Changes in the postal market due to digitalisation, changes in consumer needs and e-commerce US sustainability Study scope of universal postal service Promote a competitive single market for letters (prices/innovation) Development of e- commerce (transparency & oversight) Monitor postal market development Assess technical developments Protect consumers adequately Monitor the relevant indicators ERGP Horizontal Axe : ERGP Efficiency (beneficial for stakeholders/transparency/robust & evidence based decision/engage efficiently)

14 ERGP Reports ERGP Reports on Empowering and protecting end-users 1) Report on the quality of service, consumer protection and complaint handling an analysis of trends 2) Report on core indicators for monitoring the European postal market 3) Report on best practices in the field of consumer protection, quality of service and complaint handling 14

15 USO under review but.. Frequency of delivery in Europe in Delivery / day / 5 days a week, namely Belgium, Croatia, Cyprus, Czech Republic, Greece, Denmark, Estonia, Spain, Finland, Hungary, Ireland, Iceland, Italy, Lithuania, Latvia, Luxembourg, The Netherlands, Norway, Poland, Portugal, Romania, Sweden, Slovenia, Slovakia, Switzerland, Serbia and UK but in reality Royal Mail provides a 6 day a week service for parcels. 1 Delivery / day / 6 days a week, namely Germany, France, Malta, UK (6 days for correspondence) Combination of 5 and 6 delivery days a week, namely Austria (6 days for newspapers), Bulgaria (6 days for Sofia)

16 Collection and delivery exceptions (USO).. Reasons for exceptions regarding delivery in Mountainous areas Population density Insularity Low traffic volumes Poor infrastructure Cost of service Extreme weather

17 Increase in Prices for all products when possible Average Price of posting a domestic priority letter of the 1st weight step Outside EU Western European Average Eastern Southern

18 But Decline in quality..and what about parcels? Evolution of the average value of quality of service of single piece priority mail regarding D+1 delivery of single piece priority mail

19 Cross border parcel delivery Regulation ART. 4 Provision of information by parcel delivery service providers with 50+ employees or established in more than 1 MS to provide: basic company information, characteristics of services, T&C s, complaints procedures Annual turnover (with breakdown domestic incoming/ outgoing) Number of persons working in parcel delivery services Names of subcontractors + any information held Publicly accessible price list ART. 5 Price Transparency across the EU All parcel delivery service providers with 50+ employees required to give regulators tariffs for 15 products listed in the Annex (single piece prices with no discounts): "letter" services containing goods: 500g, 1kg and 2kg parcel services: 1kg, 2kg and 5kg standard, registered and track and trace services Commission to publish these prices on a webpage ART. 6 Assessment of cross-border single piece tariffs by NRAs Identify tariffs that it considers necessary to assess within USO Assessment in accordance with Article 12 of Postal Services Directive and : domestic tariffs in origin and destination, any uniform tariff, bilateral volumes & relevant costs (transport, service standards) where possible likely impact on individual and SME users, remote areas and disabilities If necessary: whether tariffs are already subject to specific price regulation & abuses of dominant position 19

20 Cross border parcel delivery Regulation ART. 7 Information to consumers For contracts falling within the scope of Directive 2011/83/EU (Consumer Rights Directive) traders shall, make available at the pre-contractual stage: information about the cross-border delivery options in relation to the specific sales contract charges payable by consumers for the cross-border parcel delivery where applicable the trader's complaints handling policies 20

21 21

22 What about definitions Parcel: postal item containing goods with or without commercial value other than an item of correspondence with a weight not exceeding 31,5 kg Parcel delivery services: services involving the clearance, sorting, transport and distribution of parcels

23 Avoid Administrative burden Provision of information: In the Member State they are established unless that provider is established in more than one MS the names of their subcontractors Threshold of 50 workers + to request information from providers with average between p. if necessary and proportionate Public list of tariffs: Limited to Only single piece tariffs - specific products by weight

24 Reach the goals Assessment of tariffs based on: Domestic and any relevant tariffs of comparable parcel delivery in originating /destination MS Bilateral volumes, specific transportation or handling costs, other relevant costs and service quality standards; Additional element to take into account by NRAs (MS REG) Pre-assessment filter mechanism Impact of tariffs on individual and SME s users including those situated in remote or sparsely populated areas, Information to consumers: delivery options, charges payable, applicable complaints handling policies -> Actions by NRAs.. Penalties: Different national law between the Member States -> Differences in enforcement? Who is responsible?

25 Once principle Integrate questions in current MS data collection: EC (Parcel Regulation & Postal Survey) ERGP (Report on core indicators) UPU (Postal Statistics, concerning universal service) BIPT (market observatory) Only once principle is key: minimising the input needed from operators while maximising the useful output

26 Milestones in 2019 January: tariff information provided to NRAs February: NRAs submit tariff information to Commission March: publication of tariffs on Commission's website June: tariff assessments by NRAs provided to Commission June: provision of statistical information to NRAs 30 July: Commission publishes tariff assessments + 18 months of entry into force: Commission notified of penalties after 2 years: evaluation report (possibly accompanied by review)

27 Not a parcel. A journey Towards attractive cross-border services For All

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