PSOs

PSOs, or Public Service Obligations, are a regulatory mechanism used in various industries, particularly in transportation and postal services. They are requirements imposed on companies to provide services that are deemed essential for public interest, even if those services are not commercially viable on their own. This ensures that certain services are available to all citizens, regardless of their location or the profitability of serving that particular area.

These obligations can take several forms. They might involve maintaining specific routes or service frequencies, ensuring universal access to postal delivery, or providing transportation links to remote or less populated regions. The aim is to balance the economic interests of service providers with the social need for accessible and affordable services.

In the European Union, for instance, PSOs are a common tool for managing public transport. Airlines can be required to operate routes that are essential for regional connectivity, even if they would not otherwise be profitable. Similarly, rail operators may have obligations to run services on lines that are vital for communities but lack sufficient passenger numbers to cover costs. The concept is also applied to postal services, where universal service obligations ensure that mail can be delivered to every address at a uniform price. The implementation and specific requirements of PSOs can vary significantly between countries and sectors.