Arcep is issuing its opinion on price changes in 2022 for mail and parcel delivery products that are part of the universal postal service.
Fourth year of Arcep’s multi-annual price cap for 2019 to 2022
These price changes correspond to the fourth and final year of application of a multi-annual price cap that Arcep set for 2019 – 2022 in its Decision of 26 October 2017 [1]. The price cap set by this decision reflects the dramatic changes in the economic environment in which La Poste is operating, which has resulted in a structural decrease in the volume of mail handled by the universal postal service. It therefore helps give La Poste and the market clarity on possible future price changes for those products that are part of the universal postal service [2]. This decision caps the nominal average annual increase for universal postal services at 5%, for the period running from 2019 to 2022. It has been up to La Poste to decide on how its prices will change, within the parameters of this price cap.
Price increase planned by La Poste falls within the parameters set by Arcep
The average 4.9% price increase that La Poste plans on applying in 2022 falls within this price cap. It is also adjusted according to the category of service (personal and small business mail, business mail, relational mail, direct marketing, registered mail, universal service parcels, universal service press items and international mail). The different changes by service category follow through on those made in the preceding years.
At constant volume, this will increase households’ basket by 5.4%, or 2.06 euros, in 2022: from 38.06 euros to 40.12 euros. However, because service usage forecasts point to a steady decrease going forward due to changing user behaviours, average household spending in 2022 is expected to stand at 38.38 euros.
[1] Arcep Decision No. 2017-1252 of 26 October 2017
[2] The universal postal service includes obligations to provide a defined set of postal services: it represents three quarters of La Poste’s mail business and close to a third of its parcel business. The bulk of transportation and press distribution solutions are excluded, and are part of a dedicated public service mandate.