Tag: ComReg

The Irish Commission for Communications Regulation (ComReg) has today, following a public consultation, concurred with An Post’s application for an interim increase in the price of the basic stamp from 1st March next.
ComReg is the National Regulatory Authority for the postal sector in Ireland and its prior approval is required for postal rate changes in the reserved area. While prices for domestic standard letters (up to 50g) will now be 55c, prices for mail in the 50-100g category (for example, a typical large letter) will fall from 60c to 55c. In addition, business customers using An Post’s Ceadúnas (Permit) services or meter franking machines will receive a discount of 1c per item, thereby paying no more than 54c for a basic letter.
According to ComReg, An Post outlined in its application that it has absorbed significant cost increases including wage increases of 18.9% under National Wage Agreements, since August 2003, when the price of posting a basic letter was last increased. These cost increases are clearly significant given the nature of the postal service. Other companies have been faced with similar cost increases, and as a result consumer prices generally have increased by almost 11% over the period August 2003 to December 2006. An Post estimates that its price proposals will increase postage costs by slightly less than consumer prices generally.

An Post’s application for a 25 per cent price rise has been rejected by the regulator ComReg. The State-owned postal firm was seeking a rise in the cost of a standard letter to 60 cent from 48 cent, but ComReg said there was insufficient evidence to support the claim. An Post was granted a rise for large envelopes – from 60 cent to 90 cent – while packets will rise from 96 cent to EUR2. Meanwhile, ComReg yesterday said it intended to appoint a team of accountants or consultants to examine An Post’s operations in further detail. This team will focus on “revenue identification, volume measurement and cost allocation procedures” at the company. ComReg issued a preliminary assessment on the application during the summer but it has now delivered its final position. It is not clear whether An Post may legally challenge the decision.

An Post last night refused to confirm or deny claims from the Communications Workers’ Union (CWU) that only 71 per cent of post is being delivered the day after posting. Quarterly figures, to be sent to the Communications Regulator (ComReg) by An Post today, will show that the company is falling far short of its target of 94 per cent for next-day deliveries, the CWU claimed yesterday.
The figures for the second quarter of the year had “dropped drastically” from 76 per cent in the first quarter because of the recruitment embargo imposed by the company, CWU spokesman Joe Guinan said. The closure of the manual sorting offices and their replacement with four “automated hubs” had also slowed the service.

The Commission for Communications Regulation (ComReg) today issued its second strategy statement outlining ComReg’s views on possible developments in the telecommunications and postal sectors for 2005 to 2007. ComReg is legally obliged to publish a strategy statement every two years setting out its regulatory strategy in order to meet its objectives and functions as set out in the 2002 Communications Regulation Act.