Royal Mail goes to court over zonal pricing decision (UK)

Postcomm received summons that Royal Mail intends to seek a judicial review of the regulator’s decision to reject the company’s recent ‘retail zonal pricing’ application.

Postcomm say the initial application was received in February 2007, studied with great care, and consulted on widely, at Royal Mail’s request. Postcomm rejected the application because it put forward a pricing structure that appeared to have a number of discriminatory features and would have been introduced in a way that would lead to unreasonable changes for its customers. It is now for the court to determine the merits of the case.

Postcomm has not ruled out any future moves towards retail zonal pricing for products outside the universal service should Royal Mail propose an alternative approach that avoids the problems presented by the recent application. Postcomm is generally supportive of pricing that is more reflective of costs.

Postcomm received summons that Royal Mail intends to seek a judicial review of the regulator’s decision to reject the company’s recent ‘retail zonal pricing’ application.

Postcomm say the initial application was received in February 2007, studied with great care, and consulted on widely, at Royal Mail’s request. Postcomm rejected the application because it put forward a pricing structure that appeared to have a number of discriminatory features and would have been introduced in a way that would lead to unreasonable changes for its customers. It is now for the court to determine the merits of the case.

Postcomm has not ruled out any future moves towards retail zonal pricing for products outside the universal service should Royal Mail propose an alternative approach that avoids the problems presented by the recent application. Postcomm is generally supportive of pricing that is more reflective of costs.