UK postal delivery switch ‘has seen costs rise’
Royal Mail’s controversial switch from twice-daily to once-a-day deliveries last year, which the postal operator predicted would save more than Pounds 100m a year, has actually increased net annual costs by Pounds 105m, its regulator has told MPs. Nigel Stapleton, chairman of Postcomm, yesterday cited the figures to explain why the regulator believed the state-owned postal operator could make double the 1.5 per cent a year efficiency savings it has proposed for the four years to 2010. Postcomm and Royal Mail still appear at daggers drawn over the potential for efficiency savings, a core component of bitterly contested price controls the regulator is due to finalise this month.
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