Royal Mail to be allowed more freedom on pricing

[TrueBlueTerrier]

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Royal Mail stands to gain an additional £75 million a year in revenue under proposals announced yesterday, but consumers may face higher stamp prices.

Under a new framework put forward by Postcomm yesterday, the postal regulator, Royal Mail will be granted greater commercial freedom. Proposals include removing price controls from all packets and parcels weighing more than 750g. The regulator is also considering removing price controls on pre-sorted bulk mail and giving Royal Mail more flexibility in setting prices for pre-sorted bulk mail and access services.

Postcomm plans to begin implementing the proposals next year. If all are adopted, Royal Mail stands to generate an additional £75 million a year through price rises above inflation. However, this would also lead to an average increase of 2 per cent above inflation in the price of stamps, Postcomm said.

Last night, the prospect of price increases was opposed by consumer groups. Mike O’Connor, chief executive of Consumer Focus, said: “Royal Mail needs to be more efficient and reliable and provide better value for its customers. Any new framework should aim to transform Royal Mail’s performance, otherwise consumers would find higher stamp prices hard to stomach.”

Nigel Stapleton, Postcomm’s chairman, said: “The market has changed dramatically since Postcomm put in place the current system of price controls [in 2006]. Mail volumes have fallen by 15 per cent in the last four years, with considerable switching to e-mail. At the same time, internet shopping has increased the volume of packets sent by post.”

The news came as Royal Mail announced separately that it has appointed Moya Greene, the woman who runs Canada Post, to replace Adam Crozier as its chief executive.

Ms Greene’s appointment was welcomed by the Government. Vince Cable, the Business Secretary, who signed off on the decision, said: “This is a good appointment for the company. Moya Greene will bring dynamism, strong leadership and a valuable mix of experience.”

The Government remains the only shareholder in Royal Mail, but plans to privatise the postal operator by selling up to 49 per cent of its stake.

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Royal Mail is still not allowed to undercut its rivals like tnt.
the downstream access agreement guarantees them a cut price access to out network
and forbids us from chasing their customers(formerly our customers) .
Cry freedom!

[BELIAL]

The news came as Royal Mail announced separately that it has appointed Moya Greene, the woman who runs Canada Post, to replace Adam Crozier as its chief executive.

Ms Greene’s appointment was welcomed by the Government. Vince Cable, the Business Secretary, who signed off on the decision, said: “This is a good appointment for the company. Moya Greene will bring dynamism, strong leadership and a valuable mix of experience.”

Cheers Vince. Yet another parasite . A bloodsucker with a fine union busting ;pay cutting ; pension shrinking ; bonus grabbing track record or dynamism,leadership and experience depending on which side your bread is buttered. Shameless leeches