The price of a first class stamp went up by 2p – to 30p – today as the Royal Mail prepares to lose its 350-year monopoly of the postal industry next year.
The rise was part of a series of increases in postal service charges prior to the full liberalisation of the industry next January, when any licensed operator will be able to deliver mail to business and residential customers. Second class postage remains at 21p.
Royal Mail could face a strike ballot in the middle of the general election campaign as pay talks with the Communication Workers Union remain unresolved. The two sides have two days to reach an agreement before the CWU calls a meeting of its postal executive on Monday to consider “all available options”. The potential clash between the two sides comes after nearly two years of relative industrial peace.
Read MoreThe latest findings to emerge from independent market analyst Datamonitor’s (DTM.L) “European Express Benchmarking 2004,” research reveals that the European* 34 billion Euro express market is consolidating. The top 6 players in the industry account for over 50% of these revenues compared to 2001, when they accounted for 44% of the market value and 47% of that in 2002. “The European express industry forms one of the fastest growing segments in the transportation business. Industry consolidation has continued apace as express and parcel delivery companies merge, make acquisitions and form strategic alliances in order to gain scale and enhance their capabilities. 2005 promises new opportunities for these companies with the expansion of the EU. Europe’s fast moving express industry proves difficult to keep track of and the players must be aware of competitors’ operations, changes within the industry and opportunities,” says Emilio Pedrinaci, courier and express analyst at Datamonitor.
Read MoreOn 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.”
After extensive consultation and following detailed discussions with Royal Mail, Postcomm said today that it is minded to accept recently announced revised proposals from Royal Mail to price letters and packets according to their size, as well as their weight, as from April 2006. However, Postcomm is consulting interested parties before making a final decision, both on the proposals and on the notice period before their introduction. “With full competition in postal services starting next January, it is essential for all parties that Royal Mail’s prices align with its costs,” said Nigel Stapleton, chairman of Postcomm. “Some of its current prices are a carry-over from its days as a national monopoly when cost reflective pricing was less important. To allow this to continue would unbalance a fully competitive market. “I am pleased that Royal Mail has taken on board so many of the points raised following our earlier consultation. After extensive discussions, in which we have tested its revised price proposals, we are now satisfied that they are cost reflective. Any changes must also be revenue neutral.”
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