Postal Services Act, 1998 (Act No. 124 of 1998)Accounting Separation Regulations for Reserved Postal Services13. 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. |