Price Control to be reopened after just one year?
The regulator, Postcomm, has today started a consultation based on two proposals from Royal Mail and one from TNT.
Postwatch is concerned that Royal Mail’s proposals will have a detrimental effect on customers. It appears that aspects of the 4-year price control for Royal Mail are being re-opened just a year after being agreed. Royal Mail could have rejected the deal but accepted it and immediately put up 1st class stamp prices by 2 pence.
At first glance it seems Royal Mail is now seeking to both reduce the range of prices that competitors can offer and to rebalance its prices so as to offer cheaper ones to business customers whilst increasing the price of stamps.
Postwatch will review business cases submitted by the Royal Mail and TNT when they are published on 30 March and will comment further after that.
Postwatch is concerned that Royal Mail’s proposals will have a detrimental effect on customers. It appears that aspects of the 4-year price control for Royal Mail are being re-opened just a year after being agreed. Royal Mail could have rejected the deal but accepted it and immediately put up 1st class stamp prices by 2 pence.
At first glance it seems Royal Mail is now seeking to both reduce the range of prices that competitors can offer and to rebalance its prices so as to offer cheaper ones to business customers whilst increasing the price of stamps.
Postwatch will review business cases submitted by the Royal Mail and TNT when they are published on 30 March and will comment further after that.
posted by Postwatch at 12:26 pm
4 Comments:
So yet again we see MORE price increases for the general public. I thought competition was suppose to drive prices down????? I've yet to see this happen anywhere in any industry that has either been privatised or deregulated.
When is someone going to put a stop to all this crap! The general public are being discriminated against by bulk business mailers.
The opening up of the postal market has done nothing except give bulk business mailers larger discounts on their mail.
Disgusting!
We understand your frustration that stamp prices may be increased to higher than expected prices.
Competition is clearly delivering cheaper prices where it exists. It is the regulator's job to ensure customers are not abused where choice is not offered.
The regulator is consulting, please let it have your views.
You mean competition is clearly giveing cheaper prices to bulk business mailers. So what about everyone else? What is it delivering to the general public?
Yes. Competition as expected is delivering real benefits to large customers.
Regulation remains in place to protect the interests of smaller customers.
That said, competition is responsible for incentivising Royal Mail to provide its best performance in years. Competition has to some extent benefitted all customers.
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