Price of sending a letter in the mail to rise 20% from next year
The Ministry of Regional and Agricultural Affairs has proposed raising domestic letter postage by 20 percent to €1.80 and international parcel rates by 10 percent.
Sending a letter currently costs more than the sender pays, Minister of Regional and Agricultural Affairs Hendrik Johannes Terras (Eesti 200) said in a press release.
"Volumes are declining, input costs are rising and the gap must currently be covered by the company or the state. We have to bring prices closer to the actual cost — otherwise, the service will simply operate at a loss," he added.
Even with the planned increase, not all costs will be covered, the Ministry of Regional and Agricultural Affairs said. The proposed hike would help offset a portion of actual expenses and support a transition to a new funding model for postal services, which is currently in development.
According to the draft regulation, the price of the universal postal service would rise by an average of 8 percent. For example, the cost of sending a standard letter would increase from €1.50 to €1.80 — a 20 percent jump — and express letter postage would rise from €2.60 to €3.10, or 19 percent. The cost of sending international letters and parcels would go up by an average of 10 percent.
Sigrid Soomlais, deputy secretary general for regional development at the Ministry of Regional and Agricultural Affairs, said the price hike is necessary because people are sending fewer letters.
"If the number of letters sent is half what it was ten years ago, the current service fee no longer even covers the minimum cost and that gap grows every year," Soomlais said.
The proposed regulation is based on an analysis by the Competition Authority, which assessed the cost of providing the service and the potential impact of price increases on consumers. If adopted, the regulation would take effect on the third day after its publication in the State Gazette. Eesti Post would then notify customers of the new pricing and implementation schedule.
Eesti Post, which operates under the Omniva brand, holds licenses for both universal postal services and for handling domestic and international letters and parcels. The universal postal service provider is selected for five-year terms through a public tender conducted by the Competition Authority. The current contract is valid through 2029.
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Editor: Huko Aaspõllu, Marcus Turovski
