UK Royal Mail announces date for new pricing system

Royal Mail has today confirmed that its new pricing system, Pricing in Proportion (PiP), which means mail will be charged by size as well as weight, will come into force on 21 August 2006.

The date was selected following feedback from a number of Royal Mail’s customers.

An extensive communications campaign, explaining the new pricing system, will take place prior to the change.

The new system will enable Royal Mail prices to more closely reflect its costs when the postal market is opened up to full competition on 1 January 2006 and will help to safeguard the one-price-goes-anywhere service. Postal operators in Australia, Canada, Japan and the USA already use size-based pricing systems.