An Post seeking 15% rise in standard stamp price to 55c
The Commission for Communications Regulation (ComReg) has today launched a public consultation following An Post’s recent application for an interim price increase in the price of the basic stamp. ComReg is the National Regulatory Authority for the postal sector in Ireland and its prior approval is required for postal rate changes in the reserved area.
If approved, prices for domestic standard letters (up to 50g) would increase to 55c; however, prices for mail in the 50-100g category (for example, a typical large letter) would decrease from 60c to 55c. In addition, business customers using An Post’s Ceadúnas (Permit) services or meter franking machines would also receive a discount of 1c per item. The effective date of any interim price increase, if approved, would be 1st March 2007.
ComReg recently issued a revised Accounting Direction to An Post, under which all future applications for price increases can be objectively assessed. However, An Post point out that, by 1st March 2007, it will be 42 months since prices for An Post’s reserved “letter” products were last increased.
An Post outlines in its application that it has, or will, absorb significant cost increases during the period from August 2003 to May 2007 (including wage increases of 18.9% under National Wage Agreements) and that it will have to meet further cost increases over the next 12 months including wages, energy and fuel costs; hence, its requirement for a price increase.
Overall, and on the basis of An Post’s application, it is estimated that the weighted price increase proposed for all ‘letter’ products is 9.6% based on the prices concurred with in August 2003. This compares with a movement in the Consumer Price Index (CPI) of 10.3% over the 42 months ending November 2006.
