The European Commission found, on Thursday 14 May, that the compensation granted by Spain to Correos to fulfil its public service mission (the so-called ‘universal service obligation’, or USO) during the period 2011-2020 is compatible with EU State Aid rules. The public company Correos is the biggest postal operator in Spain.
For Margrethe Vestager, Executive Vice-President responsible for Competition Policy, the Commission's decision “enables Correos to continue to deliver basic postal services in all of Spain at affordable prices without unduly distorting competition”.
At the beginning of 2020, Spain notified its plan to compensate Correos with €1,280 million for carrying out its universal postal service obligation during the 2011-2020 period. Of this €1,280 million, €1,219 million had already been paid to Correos before the notification. The Commission therefore found that Correos had benefited from illegal (non-notified) aid.
The Commission examined the measure under EU State Aid rules on public service compensation.
In order to comply with EU State Aid rules, Spain developed a detailed and comprehensive model to calculate the net avoided cost of the universal postal service, which has allowed the Commission to exclude any risk of overcompensation.
The Spanish model ensures that the discounts granted to certain consumers do not unduly increase the net cost. The Commission considers it important that losses generated by discounts on USO tariffs are not compensated by the State, as they do not result from the obligations imposed on the universal service provider.
The Commission's assessment showed that the compensation granted by Spain to Correos will not exceed the net cost of the public service mission, meaning that there is no overcompensation. (Original version in French by Lionel Changeur)