Price change count down begins

On the 29 March the Royal Mail published its Pricing in Proportion
proposals. Just 7 days later, the Regulator, Postcomm, has published its
‘minded to accept’ consultation document.

It is clear that Royal Mail and Postcomm are working closely together to
ensure Pricing in Proportion is introduced in April 2006.

Peter Carr, Chairman of Postwatch, commenting on the Regulator’s
announcement said: ” There can be no doubt that the count down has started.
In April next year the price for mailing an item will no longer be
determined by just its weight. The price will be determined by weight, size,
and thickness.

“Postwatch will, of course, carefully consider the Regulator’s
recommendations and supporting evidence. We will submit and publish our
considered response by the 4th July deadline. But we have been left in no
doubt that the decision has been taken and as such this exercise in
consultation is questionable. However, Postcomm still has the opportunity
to genuinely listen to customers. I urge them to revise the timetable to
make it clear that this is a meaningful consultation and not just going
through the motions.

“It is a disappointment to Postwatch that the Regulator has decided that the
12-months notice that large customers and many UK businesses were promised,
is to start with the launch of today’s consultation document. The notice
should have been triggered by the publication of the subsequent decision
document in July or August when customers will know the final details of the
scheme.

“Our efforts will be best directed at ensuring implementation of the move to
pricing by weight, size and thickness is undertaken in as customer friendly
a way as possible. It must not be a back door price increase.”