UK Royal Mail price increase postpone
Royal Mail today advised customers that the postal price increase proposed from April 17 will be postponed because of a decision by the regulator, Postcomm, to extend the consultation period for price control.
Postcomm has delayed the deadline for the consultation period to March 21, following representations from the consumer body Postwatch. Royal Mail had previously announced April 17 as the proposed date for its increases, subject to agreement with the regulator on the price control package, but there will now be no change to prices of any Royal Mail services on that date.
Royal Mail is considering the latest proposals for price controls from Postcomm and has yet to decide whether to accept or reject them.
Because of the longer consultation period, the earliest date that any price increases could now go ahead is May 8 – but Royal Mail stressed today that there could be no definite announcement to customers at this stage.
Jerry Cope, Royal Mail’s Managing Director UK said: “We want to give our customers as much notice as possible of any change and as much clarity as we can to help them plan.
“But this consultation involves others as well as Royal Mail and the regulator’s recent announcement of a longer consultation period means that there cannot be any certainty until at least March 21, almost a year since the application for a 1p price increase was made.
“Whatever the outcome, Royal Mail would not, therefore, be in a position to make changes to meet the originally planned date of April 17.”
Royal Mail is proposing to increase First Class basic postage from 27p to 28p and Second Class from 19p to 20p. In real terms First Class prices have fallen by seven per cent and Second Class by 15 per cent during the past five years.
“Whilst there is wide agreement on the 1p increase, Royal Mail is considering the overall impact of the full package of price controls,” said Mr Cope.
Ends
Notes to editors:
Revenue from the proposed price increases would be £170 million annually.
www.royalmail.com
