Postcomm publishes decision document on its interim review of 2006-10 Price Control (UK)
Postcomm has published a decision document confirming its proposals made in August 2007 that Royal Mail should be given extra flexibility to increase some retail prices and that access margins should be left unchanged.
These decisions are in response to the requests by Royal Mail, TNT Post and UK Mail for a review of some aspects of the 2006-10 Price Control.
As set out in Postcomm’s proposals document published in August, this decision would allow Royal Mail to raise the price of a second class stamp to 29p by 2010, subject to inflation (the original price cap was 26p). The price cap on a first class stamp will not be affected by this decision2.
In addition, Postcomm has decided to reject the requests from Royal Mail, TNT Post and UK Mail to change the margin between Royal Mail’s prices for bulk mail products and the amount Royal Mail charges other mail operators for access to its network and delivery of bulk mail over the ‘final mile’. Royal Mail had wanted to reduce the margin and the two Access operators argued that it should be increased.
Postcomm, the independent regulator for postal services, has published a decision document confirming its proposals made in August 2007 that Royal Mail should be given extra flexibility to increase some retail prices and that access margins should be left unchanged.
These decisions are in response to the requests by Royal Mail, TNT Post and UK Mail for a review of some aspects of the 2006-10 Price Control.
As set out in Postcomm’s proposals document published in August, this decision would allow Royal Mail to raise the price of a second class stamp to 29p by 2010, subject to inflation (the original price cap was 26p). The price cap on a first class stamp will not be affected by this decision2.
In addition, Postcomm has decided to reject the requests from Royal Mail, TNT Post and UK Mail to change the margin between Royal Mail’s prices for bulk mail products and the amount Royal Mail charges other mail operators for access to its network and delivery of bulk mail over the ‘final mile’. Royal Mail had wanted to reduce the margin and the two Access operators argued that it should be increased.
Notes for editors
Postcomm’s decision on this matter was first made public on 26 November 2007 in the interests of reducing market uncertainty and to allow Royal Mail to meet its licence obligations to announce the price changes to take effect from 1PstP April 2008.
A full copy of the decision document is available on the Postcomm website (www.psc.gov.uk).
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