According to the Deputy Secretary for Regional Development Sigrid Soomlais, the possible change of ownership will not change the principles of universal postal service (UPS) provision. “The obligation to provide universal postal service arises from regulation. The state will continue to have the opportunity to ensure the continuity of the service,” Soomlais confirmed.
According to Soomlais, the main reasons for the planned privatisation are rapid changes in the postal market and the decrease in the public use of UPS. “The volume of traditional postal services continues to decrease, and the company’s activities are increasingly related to the parcel transport and logistics business in a competitive market. The private sector generally has a greater ability to make investments and develop services,” she added.
The state’s participation in the company has been primarily related to ensuring the universal postal service and the postal network. In the future, the service will be ensured through the combination of effective open competition and state regulation, not through state ownership of the company. Over the past five years, the volume of universal postal service has decreased by more than 75%. Aktsiaselts Eesti Post, operating under the Omniva brand, has secured a universal postal service license until 2029. The provision of the service is ensured under the conditions set out in the law.
Last year, Omniva Group’s revenue amounted to €154.7 million and the normalized net profit was €1.4 million. In the same year, the Group handled over 50.3 million parcels. The universal postal service recorded a loss of €2.1 million and its volume decreased by 13 percent over the year.
According to the law, the universal postal service provider is appointed for a period of five years through a public competition. The competition is organized by the Estonian Competition Authority.
