The EU Commission rules that SGEI providers can be compensated in a way that induces them to become more efficient (UK Post Office)

* Article published on State Aid Hub (click here), republished in e-Competitions with the courtesy of the author(s). The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no relationships with a party or related third party. Article will need e-Competitions Board approval before publication.

Services of General Economic Interest: How to Compensate and Induce more Efficiency* Even traditional monopolists, like postal operators, have to comply with the rules on compensation for the extra costs of public service obligations. SGEI providers can be compensated in a way that induces them to become more efficient. Introduction This article examines case Commission decision SA.38788 concerning compensation for the UK Post Office Ltd [POL] in the period 2015-18. It is worth recalling that the compensation provided to the Post Office in the period 2012-15 [about €1,390 million] was the first case that was assessed on the basis of the 2012 SGEI package [approved by Commission decision SA.33054]. In its 2012 decision, the Commission also endorsed a working capital facility of up to

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Phedon Nicolaides, The EU Commission rules that SGEI providers can be compensated in a way that induces them to become more efficient (UK Post Office), 19 mars 2015, e-Competitions State aid and Service of General Economic Interest, Art. N° 77163

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