tariffs
2 February 2006
The Minister of Communications, Dr Ivy Matsepe-Casaburri, has, through the
Postal Regulator, approved a 4% average general increase in postal services
this year.
The increase is expected to take effect from the beginning of April in line
with the South African Post Officeâs (SAPO) financial year. The approval of the
4% increase follows the South African Post Office application for a general
increase of 6.5 % in their postal tariffs. However, the Minister could only
approve a 4% increase instead of the initially proposed increase. SAPOâs main
reasons for their 6.5 % increase proposal relate to high operational costs such
as transportation costs and labour costs.
Once implemented, the standard basic letter costing R1.77 will now cost
R1.85.
The Postal Regulator is of the opinion that although the high transportation
and staff costs are admittedly the main operational costs for the postal
service, there needs to be some control and room to improve efficiencies.
Consideration was also given to the universal service obligation that requires
SAPO to provide basic postal services to all South Africans, which continues to
be a major challenge.
SAPO failed to convince the Postal Regulator on their proposal, which
exceeds the national inflation target bracket. It was important for the Postal
Regulator to recommend to Minister an increase that will protect customers
against unreasonable tariff hikes and also to keep up with the principle to
make postal charges affordable.
It is envisaged that through the approved increase, neither SAPOâs universal
service obligations nor its continued financial survival will be
compromised.
For media enquiries contact:
Mr Albi Modise
Acting Chief Director: Media and Communications
Tel: (012) 427 8017
Cell: 083 490 2871
Issued by: Department of Communications
2 February 2006
