Communications Regulation (Postal Services) Act 2011

Price regulation.

30.— (1) In this section—

“basket of postal services” means any postal service or group of such services, within the scope of the universal postal service, provided by a universal postal service provider, specified in a price cap decision;

“price cap” means an overall limit on the annual percentage change in charges that can be imposed for any basket of postal services which is calculated in accordance with the following formula:

overall limit = (Δ CPI) — X

where—

(Δ CPI) is the annual percentage change in the consumer price index,

“CPI” means the consumer price index number as compiled by the Central Statistics Office, and

X is the adjustment specified by the Commission to provide incentives for efficient provision of the services concerned;

“price cap decision” means a decision made under subsection (2).

(2) Subject to subsection (3), where the Commission is of the opinion that there is no effective competition in the market for the supply of the postal services concerned, the Commission shall, following a public consultation process in relation to the services to be included in a basket of postal services and, as the Commission considers appropriate, in relation to the adjustment referred to in the construction of “X” in the definition of “price cap” in subsection (1), make a decision (in this section referred to as a “price cap decision”) specifying a price cap in respect of one or more than one basket of services.

(3) For the purposes of making a price cap decision the Commission shall—

(a) have regard to the requirements relating to tariffs specified in section 28 (1),

(b) ensure that the price cap provides incentives for efficient universal postal services provision, and

(c) have regard to its objectives set out in section 12(1)(c) of the Principal Act, in particular the protection of the interests of postal service users and those of small and medium-sized enterprises.

(4) The price cap shall apply for a period of 5 years from the date specified in the price cap decision and the date so specified shall not be earlier than 14 days from the date on which the price cap decision is published under subsection (8).

(5) On or after the expiration of 3 years from the date specified in the price cap decision as the date from which the price cap is to apply, the Commission may, subject to subsection (10), conduct a review of the price cap and following such a review, the Commission may make a decision amending the price cap decision as regards any basket of postal services specified in the price cap decision or the adjustment referred to in the construction of “X” in the definition of “price cap” in subsection (1), or both.

(6) A decision made under subsection (5) shall be expressed to come into operation on a specified date and the date so specified shall not be earlier than 14 days from the date on which the decision is published under subsection (8).

(7) A universal postal service provider shall comply with a price cap decision and any decision made under subsection (5) amending a price cap decision.

(8) The Commission shall, as soon as practicable, publish a price cap decision made under subsection (2) and any decision made under subsection (5) amending a price cap decision.

(9) Before the expiration of the period of 5 years specified in subsection (4), the Commission shall, subject to subsection (10), conduct a review of the price cap and may, following such a review, for the purposes of protecting the interests of postal service users and of ensuring compliance with the requirements as to tariffs specified in section 28 (1), make a further price cap decision and subsections (3) to (8) shall apply to a price cap decision made under this subsection as those provisions apply to a price cap decision made under subsection (2).

(10) The Commission shall conduct a review under subsection (5) or (9) in accordance with procedures established and maintained by it for that purpose which procedures shall include a public consultation process.

(11) The Commission shall publish the procedures referred to in subsection (10) and shall make a copy of the procedures available, on request, to interested persons at a cost not exceeding the reasonable cost of making a copy or, where appropriate, such cost and the amount of any postage involved.

(12) Pending the making of a price cap decision under subsection (2), unless otherwise directed by the Commission under section 28 (5), no change shall be made by An Post to any charge that applies immediately before the passing of this Act for postal services within the scope of the universal postal service relating to postal packets weighing less than 50 grams without the prior consent in writing of the Commission.

(13) Where the Commission is of the opinion that a universal postal service provider is not complying, or has failed to comply, with a price cap decision or any decision made under subsection (5) amending a price cap decision, the Commission may give a direction to the universal postal service provider to ensure compliance with the decision concerned.