The European Commission has endorsed, under EU state aid rules, a Polish scheme intended to compensate the Polish Post for net losses incurred in discharging its public service obligations between 2006 and 2011.
The European Commission has endorsed, under EU state aid rules, a Polish scheme intended to compensate the Polish Post for net losses incurred in discharging its public service obligations between 2006 and 2011. The Commission found the compensation mechanism to be compatible with Article 106(2) of the Treaty for the Functioning of the European Union (TFEU), provided that certain conditions are fulfilled. In particular, Poland must improve the entrustment act and ensure that any significant changes to the cost allocation method for compensatory payments remain compatible with the cost accounting rules of Article 14 of the EU Postal Directive (97/67/EC).
Competition Commissioner Neelie Kroes said: “I am satisfied that the scheme currently in place is not liable to over-compensate Poczta Polska for discharging its public service obligations, provided that the amendments we have required are implemented swiftly."
‘Poczta Polska’ is the universal postal service provider in Poland. Polish Post´s activities are not only confined to services of general economic interest (SGEI) but also cover postal, financial and other services outside its public service mission.
In April 2004, the Polish authorities notified an aid scheme with the aim of compensating ‘Poczta Polska’ for potential net losses incurred in discharging the public service tasks entrusted to it. The Commission opened a formal investigation on 29 June 2005, which was partially closed on 9 January 2007 for the period 2004-2005 as no compensation was granted to the Polish Post in those two years.
The Commission has assessed the measure with regard to its framework on public service compensation, which allows public service compensation, provided that the service discharged is a genuine public service, that the service is entrusted to the company by an official act containing certain elements specified in the framework and that there is no overcompensation that could give rise to cross-subsidies of non-public service activities. The Commission found the Polish measure to be in line with the framework, subject to certain changes to the entrustment act.
In particular, the Commission required Poland to improve the parameters for calculating, controlling and reviewing the compensation so as to avoid overcompensation and the arrangements for repaying overcompensation. Additionally, Poland must ensure that any significant changes introduced in the Polish accounting system during the duration of the aid scheme are compatible with Article 14 of the EU Postal Directive (97/67/EC) and that the Commission is informed of such changes within three months from their introduction. The Commission authorised the measure until 31/12/2011.
Finally, the Polish Post has been transformed from a state enterprise into a joint-stock company (Spółka akcyjna) in which the Treasury holds 100% of the shares. As a result, the Polish Post has lost the legal status which prevented it from going bankrupt, which was equivalent to an unlimited state guarantee. The company is now subject to ordinary bankruptcy proceedings.