New Royal Mail price proposals to incorporate size and format leave 70% of mail unaffected
Royal Mail today published new proposals for pricing mail mainly based on size, which could affect up to 20% of items sent by consumers, and up to 30% of the UK’s total business and consumer mailbag. The changes, which are subject to regulatory approval, would not be introduced until April 2006. They would move postal prices in line with costs by removing some of the hidden cross subsidies funded by high charges to customers sending certain items which are cheaper for postal operators to handle. UK mail prices have historically been set purely on the basis of weight, even though the size and shape of items are what largely determine the costs of collecting, sorting and delivering letters and packets. The new prices would be mainly based on the format of the item being sent.
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