Tag: Royal Mail

Size, weight, thickness and price – Royal Mail opt for complex approach

Posted by | Mar 30, 2005 | |

After consulting customers about a move to Size Based Pricing (SBP) and for
a period Format Pricing during 2003 and 2004, Royal Mail has added further
confusion by now announcing its Pricing in Proportion (PIP) proposals.

Peter Carr, Chairman of Postwatch commenting on the proposals said: “We
understand and support moves by Royal Mail to price products in accordance
with associated costs. It is important that the dominant monopoly service
provider’s products are cost reflective in the UK’s fledgling competitive
market. Otherwise Royal Mail could unfairly subsidise some of its services
to retain market share.

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New Royal Mail price proposals to incorporate size and format leave 70% of mail unaffected

Posted by | Mar 29, 2005 | |

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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It’s a regulatory roll over! Comment from UK Postwatch

Posted by | Mar 22, 2005 | |

In 2003/04 Royal Mail famously failed every one of its 15 minimum performance targets. These targets were set by Postcomm on advice from Postwatch and included in Royal Mail’s licence. Yet despite this worst ever performance the Regulator has decided after 12 months of deliberation not to fine Royal Mail. Postwatch believes the regulator has rolled over. Customers have suffered; Royal Mail has got off scot-free. The regulator is hiding behind GBP60 million of compensation, which customers were separately entitled to. In May 2004 Postcomm predicted that compensation to bulk mailers alone could reach GBP80 million. In practice, only GBP43 million has been paid due to ‘loopholes’ in the scheme written by Postcomm. Customers have been short changed by more than GBP30 million. Peter Carr, commenting on Postcomm’s announcement of no action said: “This is a bad day for customers and a missed opportunity.”

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Postcomm report points to improvement in Royal Mail service

Posted by | Mar 22, 2005 | |

Royal Mail today welcomed the decision of the postal regulator Postcomm not to fine the company for a dip in quality of service during the autumn and winter of 2003/2004, or to impose compensation payments beyond those historically agreed. A report issued today by Postcomm says the main factors adversely affecting service were industrial action at the end of 2003 and a serious fire at a mail centre a year ago – and that Royal Mail “did all it reasonably could” to reduce the impact of those events on customers. It applauds the “extensive and effective action” by Royal Mail to restore service quality – currently running at the best levels in a decade, acknowledges the operational changes made by Royal Mail were right – both for the business and its customers and confirms that no further compensation payments are due to customers beyond those previously agreed.

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GBP60m returned to UK postal customers in compensation

Posted by | Mar 22, 2005 | |

Royal Mail has forfeited GBP60 million to customers because of its poor service quality in 2003/04 when it missed all its main service quality targets, Postcomm revealed today. In view of this — and a number of other measures agreed by Royal Mail — Postcomm has decided not to impose further financial penalties on the company. Postcomm’s judgement takes account of the serious shortcomings in Royal Mail’s performance during the period, but also the extensive and effective action it has taken since then towards putting matters right.

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