Royal Mail applies for price increase

The following is the text of a press notice which Postcomm issued earlier
today, 11 April 2001.

“Postcomm has received a request from the Royal Mail for increases in a
wide range of postage rates, including a penny on first and second class
post. This request is made under the provisions of the licence we recently
issued to Consignia.

Postcomm will examine this application carefully and critically and
consult with Postwatch, the Consumer Council for Postal Services. When
applying for any price increase, Consignia must demonstrate that without
it there is a significant risk to the company’s ability to finance its
licensed activities. It must also demonstrate that no other course is
appropriate, for example by improving efficiency.

Postcomm will only allow the price increase if it is satisfied that
Consignia has made the case for price increases in accordance with the
criteria in its licence on the basis of comprehensive and reliable
information. We will if necessary go out to formal consultation to seek
views from all interested parties before deciding whether or not to allow
the whole or part of the price increases, and their timing.”

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