If you send many promotional products out in the mail then you won’t be pleased to hear that the postal regulator has given an initial green light to Royal Mail's request to raise business mail prices for one year, and is proposing to give the company more freedom to compete in the bulk mail market.
Royal Mail plans to increase the prices it charges business customers and the access price competitors pay to use its network for final mile delivery, raising up to £100m. In addition Postcomm is proposing to deregulate the market further, giving Royal Mail greater freedom to compete in the pre-sorted bulk mail market.
Postcomm has also provisionally given the go-ahead for Royal Mail to increase its general prices on average by 7%, which would allow it to realise up to £280m in additional revenues.
Postcomm is now consulting over the next two months before making a final decision.It said it regretted that Royal Mail was unable to complete its modernisation programme without making further demands on its customers, but accepted there was a risk to the universal service otherwise.
Nigel Stapleton, chair of Postcomm, said: "There is broad consensus that there is a risk to the Universal Service unless Royal Mail quickly becomes a lot more efficient."
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