Royal Mail adjust tariffs for its biggest customers

[TrueBlueTerrier]

http://www.stockmarketwire.com/article/ ... omers.html" onclick="window.open(this.href);return false;

Royal Mail has announced this year's Access tariff increases and some changes to its contracts with its 31 Access customers.

It says these changes help secure the sustainability of the Universal Service, against the backdrop of a continuing decline in letter volumes. They are part of a longer term programme to adjust Access contracts so that they better reflect the structure, operation and costs of maintaining the universal service delivery network.

The Universal Service Obligation (USO) requires Royal Mail to maintain a high-fixed cost infrastructure capable of delivering to more than 29m addresses six days a week. Access customers' volumes now constitute around half of the UK's inland addressed mail, and over 70% of business mail.

Royal Mail is changing the price differential for delivery between its four zones (London, Urban, Suburban and Rural), to ensure they are more reflective of relevant costs and market conditions. This change responds to Ofcom's comments in its March 2013 guidance document on end-to-end competition in the postal sector.

Stephen Agar, Royal Mail's managing director for consumer and network access said: "The UK postal regime is one of the most open and competitive in the EU.

"Royal Mail is constantly driving efficiency across our operations against the challenge of falling mail volumes. Our Access customers are responsible for around half of the mail we carry and we want to work with them to improve our planning and the generation of cost savings across our delivery network.

"The changes we are introducing will ensure Access customers can, where possible, share those benefits with us."