On Wednesday, 17 June, the Estonian Parliament passed at its third reading the Act Amending the Postal Act, the Competition Act and the State Fees Act, updating the rules governing the postal market and creating a clearer framework for the provision of the Universal Postal Service.
The amendments concern the Universal Postal Service and the requirements applicable to the postal network. The aim is to ensure that postal services remain accessible to people throughout Estonia while taking into account the declining use of postal services and changes in the market, including the possible privatization of Omniva.
The Minister of Regional Affairs and Agriculture, Hendrik Johannes Terras said that the key focus of the amendments is service accessibility and reliability. “Postal services must remain accessible to people regardless of whether they are provided through a post office, a parcel locker, or a postal worker. At the same time, the rules must be up to date and should not impose unreasonable obligations on service providers,” said Terras.
The Universal Postal Service will continue to be guaranteed five days a week, ensuring the delivery of letters and international postal parcels to homes across the country. As there are sufficient companies operating in the domestic parcel delivery market, there will no longer be a need to provide home delivery of domestic parcels as part of the universal postal service.
During the legislative process, a fundamental amendment was added to the Act under which home delivery of periodicals — newspapers and magazines — will become part of the universal postal service once the current contracts expire. Until now, periodical delivery has been an additional obligation of the Universal Postal Service provider rather than a component of the service itself, with prices determined through agreements between the service provider and media publishers.
“Printed newspapers remain an important and trusted source of information for many people, especially in rural areas and among older residents. If the state considers access to periodicals a service of public interest, it must also have a clear and predictable framework for its provision,” said Terras.
Bringing periodical delivery into the Universal Postal Service means that pricing will in future be regulated according to the pricing rules of the universal service, and the Competition Authority will have a clearer role in setting the pricing framework and overseeing compliance. This will provide publishers, subscribers and the service provider with a more predictable system and increase confidence in the continuity of the service.
The state’s current agreement with Omniva, the current Universal Postal Service provider, remains in force until 2029 for the delivery of letters and periodicals. In 2028, the Competition Authority will organize a new public tender to select a service provider for the following five-year period.
The Act also updates the financing model for the Universal Postal Service and harmonizes the requirements for operating in the postal sector. In the future, an operating license will only be required for the provision of the Universal Postal Service, while providers of other postal services will only need to submit a notice of economic activity. Overall, the amendments create a more favorable business environment for the development of postal services and reduce unnecessary administrative burdens.
The planned legislative changes will enter into force in stages. The first amendments will take effect on 10 August this year, the transition to the new financing model will begin in 2027, and the changes concerning periodicals will enter into force in 2028.
Source: Omniva