Dutch to regulate stamp prices.

[NEWS]

May 28 (Reuters) - A proposal to regulate stamp prices of Dutch mail company TNT NV which has worried investors, is set to become law after the government said it would not seek to remove the amendment from the country's new postal law.

Following are the key details of the proposed regulation, which politicians say has majority support in parliament.

The new Dutch postal law currently before parliament will end TNT's remaining monopoly in the Netherlands from the start of 2008.


* The stamp price regulation will apply to the so-called universal service, which includes letters of up to 2 kilograms and parcels of up to 10 kilograms, as well as certain other items sent within the Netherlands and internationally. TNT will be the sole provider of the universal service.

* After the new postal law takes effect, Dutch post and telecoms regulator OPTA will set the tariffs for the universal service based on the actual costs of providing the service plus a "reasonable return".

* The economy ministry will determine the rules that OPTA has to follow, including what constitutes a reasonable return and how to allocate costs to the universal service. It has to consult parliament and OPTA before setting the rules.

* In the years that follow, the tariffs may rise in line with inflation as measured by the consumer price index.

* The economy ministry has the power, but not the obligation, to restart the procedure and have tariffs reset based on costs and a reasonable return in later years.