Tag: Royal Mail

The cost of sending letters and parcels will be determined by the size and shape of an item as well as its weight, according to plans approved by the postal regulator Postcomm yesterday. The new pricing structure will increase the cost of sending lightweight but bulky items, such as photographic film, video tapes and large greeting cards, but will cut the postage on some heavier items, such as catalogues and books. The cost of sending a 480g box of chocolates, for example, will decrease from Pounds 1.78 to Pounds 1.59. But the charge for a 30cm by 38cm poster in a 300g cardboard tube will rise from Pounds 1.07 to Pounds 1.59. The system will be introduced in September 2006, following a multimillion pound marketing campaign, but will be revenue-neutral for Royal Mail. The national operator has been pushing for changes to make postal charges fairer and more reflective of the true cost of delivery to help it compete once the postal market opens to full competition next January. Lorna Clarkson, Royal Mail’s director of commercial policy and pricing, said: “This is a small but very welcome step in that direction.”

Royal Mail could be broken up in one of the biggest shake-ups in its 300-year history, under plans being considered by the industry regulator. The Times has learnt that Postcomm is considering whether customers would be better served by splitting Royal Mail into two or more parts. A break-up would separate its big mail centres and delivery activities from the Post Office branch network and other retail operations. Postcomm is calculating the benefits of a split and aims to consult consumers, industry and Royal Mail itself in the new year. The regulator is concerned that Royal Mail is charging rivals too much to use its infrastructure, which is hampering competition in the postal market. It also wants more transparency in Royal Mail’s functions. The plans are being discussed as Royal Mail is braced for the opening of competition throughout the postal market in January.

Postcomm is to announce its long-awaited verdict on Royal Mail’s pricing in proportion (PIP) scheme within the next two weeks. The regulator has told interested parties to expect an imminent decision on the controversial scheme, ending months of speculation about the timing of its launch. A deadline was never formally set, but had been mooted for the beginning of August. The industry is eager to know whether PIP will be introduced alongside new price controls next April.

The UK’s postal service is being liberalised on 1st January 2006, but many businesses and organisations are still unaware of the opening-up of the market to competitors to Royal Mail early next year. Matt Ward, Deputy Director of Competition and Regulation at Postcomm, the postal industry regulator, outlined the implications for the deregulation of the postal industry to over 60 delegates from major charities and other membership-based organisations at a key industry conference. Delegates at the conference, held at on Friday, 10th June, discussed what customers should be doing to prepare themselves for an overhaul of the postal service, one of their most fundamental communication channels.