Postal prices to rise - again
Royal Mail has made an announcement today that postal prices are to rise from 2 April 2007.
The first class stamp will go up from 32p to 34p - an increase of 6.25%. The second class stamp will rise from 23p to 24p - an increase of 4.35%. The differential between the first and second class stamp will go up from 9p (39%) to 10p (42%).
Royal Mail agreed a 4 year price control with Postcomm that came into affect in April 2006 and runs to March 2010. The agreement gave Royal Mail the flexibility to raise the price of a 1st class stamp by 2009/10 to 36p (from 30p).
This agreement also gives Royal Mail the flexibility to adjust its prices, but it has to give customers 3 months notice. Royal Mail has today announced the changes to its prices that will come into effect in April 2007 – so giving the 3 month notice required.
Millie Banerjee, Chair of Postwatch, commenting on the increases said:
“The price of posting has been complicated by the introduction of Pricing in Proportion in August 2006. Next April’s increases are the first to involve stamps for ‘large letters’. This adds another level of complexity that customers have to understand and it is important that they do. As an example, the cost of sending an A4 sheet of paper first class through the post will have risen from 30 pence in March 2006 to 48 pence in April 2007 – a rise of 60 per cent.
“Clearly price rises that are above the rate of inflation are unwelcome to customers. It is disappointing but not surprising that Royal Mail is putting up prices as quickly as it is allowed to so as to try to maximize its revenues over the price control period. It is, of course, unlikely that the majority of stamp using customers will be offered competitive alternatives to Royal Mail’s services for sometime – they are therefore to some extent captive customers whose only option is whether to post or not – not who to post with."
The first class stamp will go up from 32p to 34p - an increase of 6.25%. The second class stamp will rise from 23p to 24p - an increase of 4.35%. The differential between the first and second class stamp will go up from 9p (39%) to 10p (42%).
Royal Mail agreed a 4 year price control with Postcomm that came into affect in April 2006 and runs to March 2010. The agreement gave Royal Mail the flexibility to raise the price of a 1st class stamp by 2009/10 to 36p (from 30p).
This agreement also gives Royal Mail the flexibility to adjust its prices, but it has to give customers 3 months notice. Royal Mail has today announced the changes to its prices that will come into effect in April 2007 – so giving the 3 month notice required.
Millie Banerjee, Chair of Postwatch, commenting on the increases said:
“The price of posting has been complicated by the introduction of Pricing in Proportion in August 2006. Next April’s increases are the first to involve stamps for ‘large letters’. This adds another level of complexity that customers have to understand and it is important that they do. As an example, the cost of sending an A4 sheet of paper first class through the post will have risen from 30 pence in March 2006 to 48 pence in April 2007 – a rise of 60 per cent.
“Clearly price rises that are above the rate of inflation are unwelcome to customers. It is disappointing but not surprising that Royal Mail is putting up prices as quickly as it is allowed to so as to try to maximize its revenues over the price control period. It is, of course, unlikely that the majority of stamp using customers will be offered competitive alternatives to Royal Mail’s services for sometime – they are therefore to some extent captive customers whose only option is whether to post or not – not who to post with."
posted by Anonymous at 5:28 pm
1 Comments:
While increased mail prices are not welcome, they are hardly bank-breaking for the public or business.
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