Postcomm consults on zonal pricing by UK Royal Mail

Postcomm, the independent postal services regulator, has today published a document seeking views on the issues that it should take into account when it assesses proposals by Royal Mail to charge large mailers different rates depending on where in the UK their mail is delivered. (Royal Mail calls this zonal pricing.)

Royal Mail made an application to Postcomm in July which proposes to introduce zonal pricing to certain bulk mail products used by the largest mailers, such as banks, utilities, advertisers, charities and government. At present Royal Mail charges these large mailers the same “one price goes anywhere” rate. Royal Mail says that introducing zonal pricing for some bulk mail products would help bring its prices more closely into line with its costs. Royal Mail wants to be able to charge less than at present for areas where it is cheaper to deliver and charge more for areas where it is more costly to deliver. Such changes cannot be implemented without Postcomm’s prior approval.