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Postal Services Act, 1998 (Act No. 124 of 1998)

Accounting Separation Regulations for Reserved Postal Services

13. Measurement of the net avoidable cost of Universal Service

 

1) The measurement of the net avoidable cost of universal service comprises the net cost of serving uneconomic areas.

 

2) The net avoidable cost of universal service comprises costs that would be avoided and revenues that would be foregone if an operator did not have a universal service obligation.

 

3) Accordingly, the measurement of net costs would embody the following two elements which must be measured for each geographic segment, as identified in the Licensed Operator's licence:
a) Revenues and costs for outgoing mail and small parcels which would be foregone if that area were to no longer exist; and
b) Revenues and costs for incoming mail and small parcels which would be foregone if that area were to no longer exist.