Czech Post will now be able to draw up to CZK 2 billion a year from the state to cover losses from the provision of basic services. On 21 August, President Petr Pavel signed an amendment to the Postal Act that increases the current limit by half a billion crowns. The law is due to come into force early next year.
The amendment to the Postal Services Act responds to long-term losses incurred by the Czech Post in providing the so-called universal postal service – for example, the delivery of letters, the operation of branches or services for the elderly and rural residents. These losses have repeatedly exceeded CZK 1.8 billion per year in recent years, whereas the state has so far been able to reimburse a maximum of CZK 1.5 billion. The new limit is intended to help stabilize the company’s economy, which is struggling with declining mail volumes and rising costs.
In practice, the higher support could help maintain the availability of basic postal services in regions, especially where the operation of branches is economically disadvantageous. It is not yet clear whether and how the change will affect the daily life of citizens – for example, by maintaining the operation of some branches. The amendment will come into force at the beginning of next year.
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