Tag: UK

Wreck-u-lation? No, normal regulatory practice – Postcomm press statement

Royal Mail today accused Postcomm of “wreck-u-lation” and slipping “a potentially fatal condition” into its final price control proposals because it included an assumption on the cost of access by competitors to Royal Mail’s delivery network. Postcomm has stated: “Royal Mail’s price control is designed, against a reasonable range of assumptions, including on access, to ensure that the company has enough cash to cover its outgoings and implement its renewal plan. It is nonsense to suggest that this is a “bombshell” to Royal Mail. Since October last year we have been discussing the pricing of access with Royal Mail. No price has yet been set for access. “

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Big savings from Spring by re-mailing UK items from Europe

I have been advised that several large mailers (though not yet publishers) have moved their mailings to Europe to take advantage of postal savings afforded by a discount offered by Spring on Royal Mail rates. The rumour is based on the theory that Spring operates just like a consolidator – Spring is an agent and is given a discount (in this case on Mailsort and Presstream mailings) some of which is retained as profit and the balance passed onto the customer to provide a preferential rate.

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Leighton to meet senior publishing executives again at the PPA

Following a meeting held at PPA’s offices in September last year, Allan Leighton, Royal Mail chairman, will be meeting with senior publishing executives for the second time, at a lunch to be hosted by PPA on 13 March.

Publishing currently accounts for up to seven percent of Royal Mail’s business and the meeting will provide an opportunity to ensure that the publishing sector’s requirements are pushed to the top of Royal Mail’s agenda.

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Postcomm tells Royal Mail to tighten up on poorly performing postcode areas

Postcomm today moved to make Royal Mail improve its patchy first class letter service by tightening up operations in its worst performing postcode areas.
Royal Mail has a minimum target for every postcode area to deliver 90% of first class post on time. About four in five of postcode areas throughout the UK reach or exceed this level of performance. But the remainder – a number of them in densely populated areas – do not. Postcomm today issued an enforcement notice after receiving information from Royal Mail which indicated that the company was unlikely to achieve its 2003 postcode area targets. The notice specifies the actions that Postcomm intends to order Royal Mail to take and gives the company 21 days to respond.

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Price of stamps to increase by 1p

The Royal Mail was today given the go-ahead to raise first- and second-class stamps by 1p from April, but strict price controls will be put in place for the next few years to limit further increases. A new compensation scheme will be launched for late mail, which could payout GBP10 if post is delayed by 10 days or more.

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