RM given permission to raise charges and prices

[TrueBlueTerrier]

http://www.bbc.co.uk/news/business-11710061" onclick="window.open(this.href);return false;

Royal Mail is be able to increase the price it charges business customers and competitors for delivering letters.

The mail operator should be able to charge up to 15% more, subject to a short, final consultation, the regulator Postcomm said.

The higher charges could mean an additional £100m a year to Royal Mail, which is facing falling mail volumes.

The new, higher costs will affect big business customers such as banks and utilities as well as competitors.

Rivals such as UK Mail collect and sort letters themselves, but have to pay Royal Mail to deliver over what is known as "the final mile", up to people's letterboxes.

Royal Mail says current rules have meant it loses 2.5 pence on each item delivered in this way.

Stamp prices up
Postcomm also confirmed an announcement in May that Royal Mail would be able to increase the price of a first-class stamp from 41 pence to up to 46 pence from April next year.

Second class stamps could rise by up to 4p to 36p.

Although the proposed changes are subject to a two-month consultation, they are expected to go ahead.

The plans also include the relaxation of some regulations to help Royal Mail compete more effectively with its private sector rivals.

Postcomm said the changes would help Royal Mail fund its modernisation programme and help safeguard the one-price-goes-anywhere universal service in the UK.

Royal Mail welcomed the announcement.

"With mail volumes falling rapidly... it's essential the current regulatory constraints on Royal Mail are eased to allow it to compete fairly in the bulk business mail, and packet and parcel markets, where competition is extremely robust and growing," said chief executive Moya Greene.

Earlier this month, Royal Mail said its half-year profits had fallen by more than two-thirds and its core letters delivery business had returned to making a loss.

The mail operator, which is set to be sold off by the government, has long argued for lighter regulation as competitors have won more of the profitable bulk mail market.

But industry insiders believe its problems have more to do with a failure to modernise quickly enough.

Postcomm chair Nigel Stapleton said he welcomed the Royal Mail's pledge to improve efficiency as quickly as possible.

But he said he "regrets that the company is unable to do so without making further demands on its customers".

[Broxi51]

WTF!!!!! RM are allowed to charge big businesses more yet our competitors are charging less. Who does RM think that these big businesses are going to go for.
RM at extortionate prices or the competitor at cheap prices and delivered by RM

You cant make this f*cking up Incredible

[noggin1969]

Wouldn't it just

[smartbhoy]

The way i'm reading it broxi i think it means we're being allowed to charge DHL, Uk Mail, Tnt, etc more for DSA!

[Broxi51]

The way i'm reading it broxi i think it means we're being allowed to charge DHL, Uk Mail, Tnt, etc more for DSA!

Sorry I saw the big businesses and missed 'and competitors'

[youwot!!!!!]

its about time.

[jockstrapp]

Mail volumes are rapidly falling........................lying bast@rds

[walksyo]

The way i'm reading it broxi i think it means we're being allowed to charge DHL, Uk Mail, Tnt, etc more for DSA!

Sorry I saw the big businesses and missed 'and competitors'

you numpty!!! LOL
why do you think UK Mail and DHL (not so much TNT coz there floggin there mail section off next year) r shitting themselves????
Coz they now there guna be paying more...hopefully 15% more like it said....pity this didn't happen 3 years ago-But sadly this is all government doings coz at the end of the day it's guna get a better price for us when we get sold...BASTARDS!!!

[barbario]

Walksyo,what do you mean,TNT are floggin their mail section ?

[maisymoo04]

does this mean we will be back to normal now,making profit mmmmm not